A customer loyalty program is the most dominant market tool. It is structured and long-term effort which provides rewards to repeat customers who frequently make purchases.Rewards can be in the form of free merchandise, coupons, or even advance released products.
Customer loyalty can deliver impressive bottom-line results. The aggressive Indian retail market has forced the retail businesses to focus extensively on customer retention. It costs about 5 times more to acquire a new customer than to keep an existing one. That should be propelling enough to drive an effective loyalty program.
So, how to make a loyalty program enhance retail performance?
Loyalty program success starts with enrollment and registration. So, you need to
The consumer’s craving for seamless and personalized brand experiences is driving the next generation of customer loyalty. Businesses are bringing out incentive-based programs that meet customers where they are and reward them for interacting on the channels where they spend time.
Define the brand’s most loyal customer base through data collection during the loyalty program registration drive. Use this data to create analytical assets likecustomer segmentation and share of wallet. While retail loyalty programs have many purposes, the greatest value that is created for retailers is the ability to identify individual customers and to measure and understand their individual behaviors.
This data is a treasure trove of consumer insights - revelations that can enable retailers to increase basket size, shape marketing campaigns and identify their most valuable loyalty members based on spending habits and preferences.
By leveraging analytics tools and models, retailers can boost customer loyalty by creating a personalized shopping experience that customizes offers to needs.
CCRM is a customer-focused strategic process that integrates internal processes and external resources to foster long-term, meaningful relationships.Effective CRM enables businesses to collaborate with customers to better inform overall business strategies, support brand development and maximize ROI.
Using CCRM you can empower a customer to earn their loyalty points anywhere, with no bank card usage restrictions. Then consolidate spends in various places into one loyalty account and let them redeem their loyalty points irrespective of where it was earned. This will create a fully fungible and openly collaborative model.
Standalone loyalty programs may reach a saturation point. Existing consumers may start questioning the worth of rewards, or the retail business may have to reinvent a new program to keep customers engaged.
The advent of a large digital population and e-commerce industry opens doors to sign up more partners and add more consumers to the network. Partner brands provide relevant insights and indicators to improve the understanding of customers and their purchase preferences. This will help make strategic and tactical decisions to offer more personalized deals to your loyal customer base. A coalition-building approach helps brands maximize loyalty-lifespan of their customers.
In the times of decreasing margins and fierce competition, a good loyalty program has the power to transform a business into a customer-centric profit machine