The global lockdown was a great time for businesses to revisit their business approach and create strategies that offer more value to the customers in exchange for their time and money, this is one of the prime reasons why loyalty programs gained momentum in 2020.
While there is a lot of information available online that stresses the importance of loyalty programs to increase customer retention rate, loyalty programs can do much more than that. Here we share, 10 things no one tells you about loyalty programs.
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Every Business and Vertical Can Benefit from Loyalty Card Programs
Although there is no one-size-fits-all, loyalty strategies are dynamic in nature. From the fuel industry to retail and even healthcare, global brands and entrepreneurs have successfully molded loyalty marketing to suit their industry and business requirements. With the help of an experienced loyalty partner like Annex Cloud, you can gain a better understanding of what kind of strategy would work best for your vertical and specifically for your business. Annex Cloud has designed loyalty models for brands from various verticals and helped businesses to expand their base of loyal customers.
A Loyalty Card Program Does More Than Just Increasing Retention Rate
The immediate effect of a good loyalty program can be felt in the increased customer retention rate. However, a loyalty program can help businesses in more ways than one. Loyalty strategies help primarily with customer engagement. It creates a mutual value exchange and fosters a healthy customer-brand relationship. An exciting program will attract new customers through word-of-mouth marketing and referrals will further help in increasing customer acquisition rate. Also, with Google phasing out third-party cookies, loyalty programs have become the prime medium to extract vital zero and first-party data for many brands globally.
Rewarding Your Customers Is a Long-Term Investment
Loyalty programs are based on the psychology of positive reinforcement. Showing appreciation through rewards encourages customers to repeat their actions. Exciting and meaningful rewards encourage customers to continue their association with the brand which not only has a significant impact on the retention rate but also on customer satisfaction and customer experience. A fruitful, mutually beneficial long-term association creates loyalty that is undeterred by competitors’ tactics and even by new entrants in the market. Loyal customers are also strong brand advocates, they actively promote the brand they trust to their network of friends and family, subsequently helping with customer acquisition as well.
Omnichannel Loyalty is The Future
Upgrading and adapting to the changing trends is crucial for any business and the same goes for loyalty strategies. The more seamless experience you create for your customers, the more likely they are to repurchase and recommend your brand. With omnichannel loyalty, you can create an enhanced customer experience, and combined with personalization features you can offer rewards that have more value. It is only a matter of time, for omnichannel loyalty to become the norm.
Your Choice of Loyalty Partner Is the Most Important Decision
Creating a loyalty business model is a complex process. Various aspects of your brand and business need to be taken into consideration before you even design your loyalty card program. Loyalty partners like Annex Cloud undertake complete responsibility for your loyalty program from designing to execution and even data accumulation. Annex Cloud will model the program to resonate with your brand persona and help you achieve your marketing and business objectives. For a free consultation and demo, connect with our Loyalty Experience Manager.
Loyalty Card Programs Can Fail Too
No strategy or campaign is fail-proof. If not designed and executed to the T, there is a high probability of your loyalty program failing to meet the customer’s expectations. This is why the choice of your loyalty partner is extremely important. A seasoned player understands the nuances of loyalty marketing and formulates the best plan and the fastest way to achieve your business goals.
Your Competitor’s Strategy May Not Work for You
Today, customization is key. Your competitor’s strategy could be customized and personalized to suit their respective business objectives, which most likely may not work for you. You need a strategy that is designed specifically for your business and your marketing objectives. A loyalty partner like Annex Cloud can help you design a program that works for your business and one-ups your competitors as well.
Marketing and Promoting Your Program is Equally Important
Promotions and marketing are an integral part of loyalty marketing. Most brands execute a loyalty program and fail to yield its benefits because of the low participation rate. Promoting the program can give your program much-needed impetus. Making your customers aware of your loyalty program is the first step that must not be avoided. You also need to routinely promote your program to increase the recall rate and remind customers about the program.
Simple Strategies Still Work
Some of the biggest brands in the world have the simplest loyalty strategies. The idea is to keep the program simple and easy to comprehend so that it positively influences the customer participation rate. From a simple points program to surprise and delight, the age-old tactics are still valid and successful in improving customer engagement and retention rate, you only need to choose the best-suited solution for your business.
You Need to Keep Up with Your Audience
Loyalty card programs are engagement strategies. Engaging with customers regularly and effectively can do great things for your business. To develop an efficient strategy, it is important to connect and keep up with your customers. Gauging the taste, preferences and requirements of your customers and addressing their concerns can go a long way in building a strong brand with a loyal customer base.