Customer loyalty is an essential pillar of your growth strategy. Repeat customers buy more frequently, spend more and generate higher revenue and profitability than new ones.
Purpose-built loyalty management software helps you to build personalized content for each customer based on their purchase history, behavior and other relevant information. This way, customers receive more value from the brand and feel valued in return.
Boosts Customer Loyalty
Using a loyalty program to increase customer retention is one of the best ways for merchants to improve their bottom line. Brand loyalty increases purchases and spending, resulting in higher profits and lifetime value. However, the key to creating a successful loyalty program is to make it accessible and easy for customers to use. This means it should be mobile-friendly, allow for quick and hassle-free enrollment, and provide access to easily digestible analysis reports.
A modern loyalty management platform allows retailers to create various program structures, including points-based, tier-based, and subscription-based models. Additionally, it will enable omnichannel integration so that users can redeem their rewards in any store or online. This also helps to boost average order values and share of wallet spend.
Modern loyalty management platforms also provide tools to help merchants segment their loyal customers and send targeted messages. For example, they may include dynamically generated discount codes that are automatically assigned to specific groups of loyalty members based on their purchase history. This helps ensure your message is delivered at the right time to drive more meaningful engagement and retention.
Boosts Customer Engagement
Achieving a successful customer retention strategy is about offering customers an exceptional experience. Purpose-built loyalty management software can deliver omnichannel engagement that connects with customers meaningfully while providing data on their purchasing habits.
This data makes it easy to identify and reward high-performing shoppers in your loyalty program who are already bringing a higher ROI than new customers. It can also provide the context to optimize upsell and cross-sell campaigns that drive revenue growth.
For example, Sephora’s Beauty Insider loyalty club goes beyond the traditional tier-based points system by giving customers exclusive events, recommendations from beauty experts and opportunities to collaborate on product development. As a result, their members are more than just buyers: they’re brand advocates who spread the word to friends and family.
Loyalty programs demonstrating value enhancement – such as providing product information that helps shoppers feel confident in their purchase or encouraging customers to share social media content – can boost engagement, increase average order values and encourage repeat purchases.
A loyalty management solution offers a fully-configurable customer loyalty rewards platform designed to improve average order values, boost the share of wallet and improve loyalty metrics.
Boosts Customer Retention
There are a few ways that a business can manage its loyalty program:
- Using existing marketing software
- Extending its e-commerce platform with an app
- Investing in a standalone loyalty management system (LMS)
An LMS can be integrated into a company’s ecosystem and is designed to scale over time. It allows merchants to set the rules for their loyalty program, capture customer data, and provide detailed performance reports.
A centralized system is also important to ensure that the experience for program members is consistent across channels. If a loyalty program needs clarification, shoppers may drop out and switch to competing brands with simpler programs. Loyalty management systems can be used to create various promotions that are automatically assigned to users’ accounts. These promotions can include discount codes applied to purchases or one-time offers only available to certain user segments.
Loyalty management platforms allow merchants to display personalized content and rewards for their program members across channels. They can create customized experiences that add value for shoppers, incentivize more good behaviors, drive brand preference, increase the frequency of purchases, and increase average order values. Gartner suggests that a loyalty strategy should focus on “value enhancement.” This means delivering experiences that make shoppers feel more confident about their purchases or educating them on using products.
Boosts Customer Revenue
Boosting customer retention is the first step in increasing revenue. After all, loyal customers spend 140% more than non-loyal ones. This is why a successful loyalty program should be led by data that provides concrete numbers and metrics, such as repeat purchase rate, redemption rate and revenue per customer. It also provides insights that help identify areas to improve the program.
While there are a few ways to manage a loyalty program, one of the best is to use a loyalty management system (LMS). This software helps you design and implement a program that fits your needs and objectives. It can help you with everything from establishing points-based programs to tying them to subscriptions and POS systems. In addition, it can automate rewards delivery and process transaction data. It can also provide you with performance analytics and reports.
Many brands outsource their loyalty program management to qualified agencies, such as digital fabric services. This approach can be more cost-effective than handling all the components in-house. However, a standalone LMS is another option that offers robust features. It is platform agnostic and integrates with many e-commerce platforms. It can also serve as a central repository of customer data.
Zinrelo, for example, is an all-in-one loyalty management solution rated as number one on G2. It takes data seriously and uses it to drive a structured approach. The company claims that this has resulted in an 80% increase in repeat sales and a 2.4X increase in revenue. Read more interesting articles on Tech new master