Increase Customer Retention with a Dedicated Loyalty Program

by Bistriti Poddar |

The notable fact that retention is much cheaper than customer acquisition has led organizations to focus on developing strategies and programs dedicated to conveying gratitude to customers and making them feel valued. This strategy known as a dedicated loyalty program, creates customer loyalty plus, time guarantees high customer engagement, word of mouth and advocacy. These types of programs perfectly cater to the organizations’ goals and objectives by delivering strong results by creating unique bonds with customers. Organizations everywhere are developing dedicated loyalty programs that offer convenience, quality, value, transparency, and creativity, and novelty.

4 reasons to create a dedicated Loyalty Program

  1. A dedicated loyalty program allows you to create a 1:1 connection with your customer in a way that will foster an emotional bond. This emotional bond plays a massive role in driving sales and increasing the Customer Lifetime Value (CLV).
  2. By having a dedicated loyalty program, you’re able to focus on your organization, your customers, your customer experience.
  3. The most important and powerful asset of a business are its customers. In the new digitally advanced era, a dedicated loyalty program will work equally well to bring new leads to the business. A well strategized, brand oriented dedicated loyalty program can include modern methods like gamification, referrals, omnichannel experiences that customers will talk about and will bring in others.
  4. By knowing your customer through your dedicated loyalty program you will be able to suggest new options for them in a meaningful way that will ultimately have a significant impact on your number and size of sales; your bottom-line.

Today’s world is competitive, which makes it crucial for organizations, big or small, to invest in dedicated loyalty programs.  Below we have mentioned few key points that will help you better your understanding about the dos and don’ts of dedicated loyalty programs

  1. Believe in the power of personalization. Make sure while drafting the perfect dedicated loyalty program, you put enough emphasis on personalized rewards and emails. This helps the customer believe that he or she is important and valuable to the brand.
  2. Capitalize on the trends like offer experiential rewards (VIP Events, personal shoppers, limited editions), invest in surprise and delight, encourage product recycling, give exclusive VIP treatment to top members.
  3. No matter what the result is, it is highly advised to analyze collected loyalty data and alter your marketing strategy to improve factors like customer engagement, redemption and retention.
  4. Do not put any restrictions or limitations on reward points. Putting limitations means you are indirectly stopping your customers to gain benefits from frequent purchases.
  5. Keep monitoring and tracking your KPIs (Key Performance Indicator) to understand the progress of your dedicated loyalty program. Establish your loyalty program goals and introduce the program design and features to your customers accordingly. Setting out clear goals directly influences the success of your loyalty program.
  6. Define your loyalty program design types like whether you want to offer perks or a privilege loyalty program, points based, or tier based, or paid/subscription based or a hybrid program. Once you have set your design types, outline the functionalities and program size; whether you want a small member sized program or a scalable program, go for a loyalty program that enrolls broadly and rewards smartly.
  7. Don’t keep your customers hanging when they try to redeem rewards. It is crucial to build an efficient customer relationship management, to get back to customers and be readily available for every inquiry.
  8. Instant gratification plays a major role in motivating customers to keep engaging with your program. Ensure that points, rewards or benefits are made available to customers instantly. This creates a positive customer shopping experience that your customers will be highly encouraged to share with their friends and family.
  9. Partner with a market leader in the loyalty program space to leverage their platform capabilities. Choosing the right partner for you should include thorough evaluation of their loyalty program software, feature flexibility offered, standard integrations and strategic consulting services.

For over 10 years, Annex Cloud has been the worldwide leader in technology and service solutions that transform customer loyalty experiences for organizations, extending valued customer engagements, and tracking valuable customer information for marking strategic decisions. Powered by the comprehensive and scalable Loyalty Experience Manager™ solution suite, Annex Cloud customers capture and use zero and first party data to seamlessly deliver hyper-personalized experiences across the entire customer journey – from awareness to purchase to retention, loyalty and advocacy. Brands partner with us to take advantage of our robust platform capabilities as well as industry expert recommendations that have helped several customers implement successful loyalty programs. The company is recognized by industry respected organizations like Gartner and Forrester and integrates with over 100 market-leading technologies. Get in touch with us today!

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