Retaining customers is easier and more affordable than attracting new ones. Brands spend a considerable amount of money in marketing their products to penetrate unknown territories. But what happens behind the stage in the meantime? Existing customers who trusted your product in its adolescent phase keep the show running. While acquiring a larger market share is the way to grow, retaining and rewarding existing customers can be your contingency fund. Advanced Loyalty Management System, provide the flexibility to create custom Loyalty Programs to achieve that.
Loyalty management systems are a proven way to grow and sustain market share. Existing customers can comfortably become prime consumers resulting in a win-win situation for both. For such benefits to be relevant, they should be easy to access, pertinent to industry trends and attractive for conscious consumers. Loyalty management systems and customer reward programs can be online or offline and offer cash-backs, point-based, tiered, paid, value-based, partnership-based, or other benefits.
Depending on the nature of your business, goals and your target market, here’s how you can choose seven ways to build an effective loyalty management system:
1. Points
This loyalty management system revolves around spending more to get more points. These points allow a discount at the time of the next purchase during online and retail shopping. Points can be allocated based on the total amount or per dollar spent. Redeemable points help increase the customer’s order value, resulting in ensuring repeat purchases and eliminating competition.
2. Paid Programs
Paid programs invite a minimal monthly or annual fee to become a premium club member for various added benefits. Frequent buyers can avail of exclusive perks from such loyalty management systems of established brands. An important thing to keep in mind is that the value of the benefits must exceed the membership fee.
3. Tier Programs
This loyalty management system focuses on levels of loyalty. There’s a slab according to which customers who buy more products or services get more rewards. Such programs also work with the customer’s psychology by trying to reach the top level of the chart. Gamification of loyalty programs is often rewarded by higher customer engagement.
4. Subscription Programs
For products that one regularly uses, subscription-based benefits are a great way to encourage brand loyalty. FMCG companies that sell products like skincare or coffee can boost discounted prices per purchase for subscribers. While this is a secure way of increasing sales, customers do not have to worry about running out of that product. Subscriptions can be bi-monthly, monthly or quarterly, depending on the product use and quantity.
5. Community Programs
Community programs are often a mix of loyalty programs like points and tier programs and make the customer be a part of a like-minded community. The exposure allows the members to connect, sign-up for exclusive events, and more. Community loyalty management systems can find creative ways to offer something new each time and get fantastic content/feedback for group social media marketing. It also encourages consumer insights for product development and conversion optimization.
6. Progress Programs
An encouragement to achieve a target that gets rewarded can work wonders for a brand’s loyalty management system. The target can be associated with a need related to the product for which the reward is the product. For example, the Nike Run application regularly tracks the fitness targets achieved by its users and rewards them for each progress. Here, the need for fitness is personal but aligns with the products of a sportswear brand. The psychological trigger that encourages repeat engagement is known as the endowed progress effect.
7. Charity Programs
Each loyalty management system need not revolve around monetary benefits. At times, a customer may not spend from his pocket towards a cause he/she feels connected to but is happy to contribute through a charitable loyalty program. This arrangement lets the customer feel good about purchasing products of your brand for a ‘larger purpose’. The mutual value it creates cannot be calculated in numbers but goes a long way in building a stronger relationship.
For loyalty programs to be effective, end-to-end automation must be adapted. Tech-enabled integrated marketing solutions can help brands in continually influencing and re-engaging with the customers. Neurotags offers personalized communication to understand consumer behavior and boost ownership. Custom-made, independent PoS designed by our experts can make the process of onboarding effortless. Smooth procedures offered by Neurotags result in frictionless customer participation and provide various options to redeem loyalty points. Our tools also help to generate the pattern of re-engaging and re-selling.
