Before we even begin talking about Loyalty Management solutions and its significance, it is really important to understand what customer loyalty means. Customer Loyalty is basically the commitment of a customer towards one’s brand or organisation.
According to a study from Bain & Company, the average repeat customer spent 67% more in months 31–36 of their shopping relationship than months zero-to-six. On the contrary, bringing in new customers can cost anywhere from five to twenty-five times more than selling to your current customers. Thus, if viewed in this light a loyalty program can turn out to be an efficient and cost-effective technique to retain customers and increase their trust in us.
These Loyalty Management Solutions aid the businesses in creating, analysing and managing customer’s needs and in turn identifying potential regular customers to retain them. Retaining customers could include incentives such as offering discounts and giving rewards.
Loyalty Management Solution directly aid in increasing customer engagement which means the customers will be more incentivized to buy, act and share. They are more likely to interact with the organisation on social media or other forms of media and they are more likely to promote your brand by word of mouth.
Loyalty solutions, when applied carefully, can prevent customers from turning to the competition. While there are so many loyalty management solutions around, its significant for the organisations to present their solutions in such a way that it comes in use of the customers and they are able to use it effectively.
The average consumer, according to Bond Brand Loyalty, belongs to about 14 loyalty programs but uses less than half of those regularly. Thus, the presentation and ease of use of these solutions also are significant in deciding the success of these programs.
As a part of these solutions, the customers are asked to provide all their relevant details to map their journey with the brand. These Loyalty Management solutions create a personalised effect for their customers which makes them attached to the brand for a longer time. Based on their purchase history, order history, service subscriptions and locations, the organisation is able to understand the customer’s preferences and habits. This, in turn, creates a personalised imprint on the mind of the customers and they tend to stick to the brand for their future purchases and requirements.
Loyalty Management Solutions act as a catalyst in streamlining the purchasing process. Because loyalty programmes acquire valuable information from consumers, storing payment information aids customers in making purchases and upgrades swiftly and smoothly. Because member information is stored already, it can significantly reduce any barriers to making a seamless transaction.
Many individuals want to feel as though they are a part of something larger and more valuable than themselves, and loyalty solutions help in providing that. These solutions tend to build a community where the customers feel important and heard.
One of the major advantages of these solutions is that they reflect and focus on the customer’s emotional side and therefore create a more enhanced (and personal) customer experience. Each time an organisation rewards a customer, they appeal to their emotional side. Rewards could be in the form of discounts against their purchases or points that they can later redeem. Focusing on customer’s emotional side strengthens their loyalty for the brand resulting in repeated purchases, in turn, boosting the organisation’s profits manifold.
The Loyalty Management solutions, besides making use of discounts and rewards also make use of referrals. These referral programs give an innovative way to the organisation to promote their brands and acquire reach for their organisation. These solutions aid in getting feedbacks and reviews from the customers, again placing them in an important position where their suggestions and complaints are actively being listened to and addressed.
There is a concept of tiers when it comes to Loyalty Management. The tier system has levels, where with each level the benefits offered to the customers will be greater. In this way, the customer is motivated to reach the maximum level to attain valuable benefits. To reach the maximum level he will be inclined towards being in touch with the organisation by making purchases. This in turn, benefits both the customers as well as the organisation.
With all the competition out there, brands need a way to stand out while fitting in with their customers’ lifestyles. These loyalty management Solutions can help brands set themselves apart from the competition while creating a dedicated customer base. Using the right tactics in creating the solutions can have a measurable, meaningful return on sales and retention.
Galvantrix, a partner of Salesforce, has been successful in adopting loyalty management solutions to aid its customers to its full extent. To know more about our Beanz Loyalty Management solutions that we offer for our customers, click here.
