Customers are more empowered, demanding, knowledgeable, evolved and interactive than ever before. They have more expectations, power and choice and want to seamlessly engage through multiple channels before making a buying decision. Research states that about 47% of customers admit to using three to five communication channels ranging from social media, chatbots, mobile apps, videos, company website, etc. Customers these days prefer an integrated experience that enables them to easily transition from one channel to another. If brands want to maximize customer retention and loyalty and cut through the noise in a competitive landscape, they must focus on personalized experiences and relevant messaging. So, employing an omni-channel strategy is a great way to impact customer convenience and conversion. According to ClickZ, customers who used three or more channels to interact with brands had a purchasing frequency rate that was found to be 250% higher than single-channel users. According to another intriguing insight, an effective rewards program increases a brand’s market share by 20%. And about 89% of respondents to a recent retail study showed that customers are most likely to purchase products through a channel that is most convenient for them.
To meet dynamic expectations of customers, brands need to make the customer integral to every action they take and focus on omni-channel loyalty programs. So what’s an omni-channel strategy? Omni-channel loyalty programs focus on the best shopping experience across all channels.The primary goal of an omni-channel loyalty program is to encourage customers to earn and redeem rewards across multiple channels (text, email, voice, social media, app, web, in-store etc.) where your brand has a presence. Identify the most relevant touch points, integrate them into the overall customer journey and watch your bottom line improve.
A brand that has nailed the omni-channel loyalty experience is Starbucks. First things first, Starbucks offers a free loyalty rewards program in which a customer can pay with cash, credit/debit or a mobile device at the store. They can earn rewards called “stars” as well in the process. Also, Starbucks has made it really easy for customers to reload their card through their phone or in person at a Starbucks store. If customers make any changes to the card or to their profile, it gets automatically updated in real-time across all relevant channels. Being a member of the Starbucks loyalty program also allows them to enjoy free drinks, free food, free size upgrades and free drink customizations.
Ingredients of a successful omnichannel loyalty program:
To design and create an effective omni-channel loyalty program, keep these considerations in mind: