Loyalty programs are huge for improving the overall customer experience. Were you aware that approximately 65% of a company’s business comes from existing customers? Attracting new customers takes a great deal of time and investment. At the same time, a company can earn more business with its existing base through loyalty programs.
- The chances of selling products/services to a new customer are only 5-20% whereas the odds of selling additional products/services to an existing customer are approximately 60-70%.
With loyalty program management, companies can retain and make repeat sales to existing customers. Loyalty management is a powerful strategy that uses various tools and tactics. Companies use these tools to gain, engage, and maintain customers. A well-organized and executed loyalty program is beneficial for both companies and customers.
Loyalty programs are often not considered an important part of the overall customer experience. However, they can help build strong relationships and loyalty. According to one report, approximately 75% of adults in the U.S. belong to at least one loyalty program. A survey by KPMG revealed that a loyalty program encourages 80% of millennials to spend more with a brand. Roughly 78% said that they would switch to another brand if they get a better offer. 85% of people loyal to a brand said they would recommend it to their friends and family members.
Well-executed loyalty programs can prevent customers from straying to other brands. They are effective at retaining customers and also augment the lifetime value of your regulars by offering incentives to make more purchases. Loyalty programs provide added recurring revenue to the company and improve overall customer satisfaction through various offers, rewards, and perks, resulting in a superior experience.
Three Ways to Enhance Customer Experience via Loyalty Programs
Listed below are three of the most effective ways to manage a customer loyalty program.
1. Personalization provides the key.
Businesses can use relevant information about their customers in their loyalty programs. This helps deliver personalized experiences throughout the customer journey. Customer details and preferences can help businesses better incentivize their customers. It’s important to note that customers tend to react well to a personalized approach. Personalizing a loyalty program can make it far more powerful.
It’s likely that personalization will make a customer feel more satisfied — about eight times more — with your offer. Tailored products and services enhance business by targeting a customer’s attention. Businesses can provide only the most relevant offers to their customers even if they don’t provide all the details upfront.
Personalization is made possible by tracking order history, search history, location, current service subscriptions, and so forth. Showing customers that their individual preferences and requirements are important to your business can make a big difference. It can enhance the relationship with your company and make your loyalty program successful.
2. Streamline the buying process.
Any effective customer loyalty program must be able to ease the entire buying process. Most loyalty programs collect only essential information, even the payment details. This allows customers to purchase quickly, without a lengthy checkout process.
Nowadays, many businesses use customizable apps to enhance customer experience. These apps allow customers to buy any product and pay immediately without waiting in a queue. Since the system has all the essential details about the customers, it eliminates the obstacles that can slow down a seamless transaction.
3. Implement creative ways to engage and delight customers.
Finding effective ways to engage and delight customers is another important factor in building customer loyalty. Rewards such as free shipping, early access to new products, coupons, discounts, gifts, and added benefits make customers willing to pay extra to be a part of a loyalty program. The rewards or offers should encourage customers to repeat purchases and also make them likely to recommend the product/service to others.
With loyalty program management, companies can engage and delight existing customers. To create customer excitement, brands can make the buying process as well as the contacting process easier for their customers. This can be achieved by paying attention to the devices as well as channels customers use to reach out to a particular brand. Brands can use new tactics as part of their loyalty program to set themselves apart from the competition.
Setting Up a Loyalty Program Is Easier Than Ever Nowadays
Technology has filtered down such that small businesses can set up loyalty programs just as effective as those of large corporations.
Owing to their benefits, more and more companies of all sizes are implementing loyalty programs. When executed carefully, loyalty programs can bring great results for just about any company. They lead to higher sales and improved brand identity. In all, a successful loyalty program can drive significant value and growth for a business.