A customer loyalty program will allow businesses to structurally improve their customer retention, repeat purchase, and overall satisfaction, leading to more revenues, profitability, and overall engagement Additionally, it is a method to step away from discount-based promotions and run loyalty-based campaigns instead.
The first move is for your brand to identify the different customer personas. The next step is to persuade these customers to make more repeat purchases. All of this leads to increased revenues, higher AOVs (average order value), and a reduction in marketing costs. While persuading customers to make more repeat purchases is an advantage, the techniques for obtaining this advantage could be tedious.
Zinrelo is a modern customer loyalty rewards program that maximizes repeat sales and revenues through a 360-degree engagement with consumers. Zinrelo advocates various facets of loyalty, including transactional, social, engagement, behavioral and emotional loyalty. It offers support for omnichannel implementations across online, mobile app, and physical stores.
Let us explore how a loyalty incentive program for consumers will overcome all these obstacles.
Customer Engagement
Customers will not purchase from you every day. This time of hibernation between purchases can be used for engaging with the customers so that your business becomes the go-to brand when they are about to make the next purchase. This can be easily done with the help of a loyalty software.
Eliminate Discounts
Brands use discounts to promote the next purchase, but this affects margins and diminishes the brand value. Customers get trained for always looking for discounts. These deal-seekers exhibit truly little loyalty. You need to cultivate loyal customers who are also highly profitable.
A 360° loyalty engine will help you accomplish just that. Customers may earn loyalty points for many activities like purchases, recommendations, social media share, viewing a YouTube video, birthdays, and much more. Customers can then redeem these loyalty points for different benefits. When you want to create a promotion, you can simply offer bonus loyalty points rather than discounting your products. These awards and points guarantee that your customers remain loyal to your brand.
Data Insights
A loyalty program collects tremendous knowledge and data about the customers. This helps in segmenting consumers according to different attributes and parameters. It is possible to target individual consumer groups with these data to produce incremental profits.
Also, the customer communications can be tailored and made more meaningful for every customer through better market insights. For example, these data will help you in finding customers who haven’t purchased in a long time. You can get them to buy again by giving them a win-back bonus.
What is the retention of customers?
It is the ability to sell to customers who have already made purchases. The retention metric is about turning new customers into repeat customers which makes it a useful metric to measure and track.
According to a survey by Forrester, consumers increasingly raise their revenue risk by looking for substitute brands when their requirements are not satisfied. The study also predicts that companies will be facing a rise of 25 to 50% in sales risk because of negative consumer encounters.
An easy-to-use loyalty program powered by data allows businesses to attract more consumers and retain the existing ones.
Few customer retention techniques-
Customer data –
Retention without data would make no sense. Instead of firing in the dark, a data-based strategy helps in positioning and creating the customer retention program strategically. It is crucial to analyze consumers to design a successful retention plan.
The primary goal of retention would be defeated by running the same retention plan for everyone. According to the McKinsey Global Institute, data-driven companies attract 23X more consumers, retain customers 6X times, and are 19X more likely to gain from them.
Customer feedback and action –
The trust in a company increases as consumers make more repeat purchases. According to a survey carried out by Microsoft, 52%of the world’s people agree that businesses must respond to consumer input.
Experiences –
Brands now leave no stone unturned to give their loyal customers unique experiences. Capgemini reports 97% of award programs currently depend on transactional incentives, which allow businesses to differentiate the brand from the competition in terms of expertise and not discounts.
Experiences can evoke feelings that are far more powerful and enduring than transactional benefits. Customers would like to know their experiences better with friends and relatives. Events are also called “transformative” incentives.
Customization –
The optimal experience for customers is structured for satisfying the needs of consumers. It goes a long way to building a strong professional relationship with clients. According to the McKinsey & Co. report, customization lowers procurement costs to 50%, boosts profits by 5-15%, and improves campaign spending productivity by 10-30 percent.
Personalized touring, from discovery to post-commercial, enhances the experience. For perfect personalization, data plays an essential role. Personalization drives loyalty in the end. The Starbucks loyalty rewards application is a great example of that.
Measuring customer retention?
Repeat Consumer Leverage (RCL) could be used for estimating a customer’s benefit for the organization directly. The higher RCL’s worth, the higher the commitment to turn your once clients into repeated consumers. Loyalty incentives are a well-established strategy for once-in-time clients.
You can start measuring your RCL value for your company by using a quick, easy-to-use loyalty calculator.
The emphasis on the retention of consumers varies according to the type/size and targets of a business. Repeat customers buy more often and invest more than new customers.
Summary
Brands are differentiated from rivals by a consumer loyalty program. Stop trying to compete on price. The acquisition of consumers is better with a loyalty scheme. It will contribute to improved buying profits.
Your brand will grow personal relationships with customers with higher customer satisfaction. In general, these behaviors of loyalty would build brand supporters. When talked to by a friend, people are seven times more likely to buy. A customer acquisition policy is also a mechanism for retaining the customer.
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