Customer loyalty has shifted from a focus on price & product to a focus on the experience customers receive.
Technology has helped shaped this shift and an organization not focused on the behavioral and digital transformation, is at the risk of losing its previously loyal customers.
86% of buyers are willing to pay more for a great customer experience, SuperOffice
The relationship marketer’s objective is to ‘help’ customers get as high up the 'Loyalty Ladder' as possible. This usually involves providing more personalised service and providing quality that exceeds expectations at each step.
So, how do you move your loyalty program up into the lucrative upper tiers?
Below are three key things to keep in mind:
DATA AND PERSONALISATION
Research reveals a customer is EIGHT times more likely to be satisfied with a loyalty program that is personalised to their habits (Bond Brand Loyalty Report).
At each payment, the customer gives uses their loyalty app to receive the benefits. In this way, customers showcase their habits via invaluable data. Use this data to create and continuously evolve the best loyalty program for your business.
Showing customers you understand their individual habits and needs can go a long way in making a successful loyalty program.
CHOOSE INCENTIVES WITH CARE
GEMS Rewards members, for example, can earn points though the loyalty programme and use them towards their children's tuition fees - incentives like this can make all the difference between customer satisfaction and customer delight.
In today's crowded market, it is essential to make customers ecstatic and willing to tell others about you. If the incentives are right, customer loyalty programs have the ability to do just that.
Encourage this behavior by rewarding referrals. GEMS Rewards members can earn 4% in GEMS Points on successfully enrolled referrals.
MAKE IT EASY
It gets frustrating for the customers if during the redemption process they discover a myriad of rules, regulations, terms and conditions, and exclusions.
DIGITAL FIRST - apps present a huge potential for brand loyalty with 70% of shoppers more likely to participate in a loyalty program if they can easily access it from their mobile phone.
Forbes say the “empowered consumer” is no longer easily influenced by brand and traditional advertising tactics. Consumers engage with brand loyalty programmes that are easy to use and adapted for today's hyper connected world.
Using the right tactics, customer loyalty programs can help brands set themselves apart from the competition while creating a loyal customer base.
Use your existing customer data to create and evolve the best loyalty program for your business
Companies must recognize mobile app and ease of use as compulsory in their loyalty program.
Take a look at your competitors loyalty programme - is this an opportunity to develop competitive advantage?