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  • Loyalty Programs from a Customer’s Perspective
  • Customer Loyalty Program

    In our series of blogs on loyalty programs, we have covered various aspects of managing effective campaigns for genuine and positive results. We have discussed many facets of loyalty programs software from the business point of view. Now, this is an attempt to understand loyalty programs from a customer’s perspective. From business owner or marketer’s point of view, customer expectations are most important part of your insight tracking feature as it helps in understanding typical customer behavior in real time. Commissioning this technology is vital for creating your loyalty programs management system with more purpose and taking expectations of customers into accountability.

    However, ever wondered, how customers decide – which program to join and which one to leave. But, before that, let’s quickly go through some data regarding loyalty programs software. Since 2013, US companies are spending over $1.2 billion in loyalty marketing campaigns. Besides, 1.8 billion US citizens are engaged in one or more loyalty programs. Most interesting of the fact is US household subscribe to upto 14 different programs, which clarifies that you still got a very good chance with this instrument.

    So, when customers are willing to join companies and their loyalty platforms, what are those criteria, on the basis of which they decide the merit of such campaigns.

    Criteria that Customers Use to Select Loyalty Programs

    Frankly speaking, customers these days are very selective while purchasing products and therefore, they judge their companies on the basis of loyalty campaigns they get in bargain. Here, NextBee unfolds the list of factors that are crucial for customers. On a lighter note, we have added customer’s possible reactions on lack of these features.

    Simple and Easy Point System:

    Many customers quit companies due to complicated point system they have to deal with in the loyalty programs. This is very natural for them, as, when they find your program’s point structure difficult to understand, they tend to purchase their products and vanish. Best part is you can’t hold them responsible for their action as negligence is from your end. Too rigid or complicated point system is just another cause to err customers and for that they can leave you any moment.

    Customer’s Reaction: Why should I get dragged into this illogical point system, when I have much easier and better options?

    Tier Based Reward Structure:

    In other criteria that worry customers are the reward structure. Most customers prefer to participate in tiered reward structure, as, such program offer instant and long-term benefits. In a tiered reward structure, customers have option to win bigger and better rewards by qualifying to higher levels of the hierarchy tree. One time POS promotional discounts are not inferior by any means, however, when you get qualified for a premium customer group and enjoy lifetime discounts, as a customer, you will go for the later hundred out of hundred times.

    Customer’s Reaction: Why should I go for one-time rewards, when there are options to get cumulative benefits over long period of time?

    Relevant Rewards:

    This is another criteria pertaining to rewards offered in loyalty programs management systems. Companies do carry out tracking of consumer behavior to understand user expectations from their brand and therefore create relevant rewards, which adds value to customer’s purchases. Similarly, customers also watch out for rewards which are relevant to them and offer good value for their purchases.

    Customer’s Reaction: What would I do with these rewards?

    Quality Reward Fulfillment:

    Reward fulfillment is the process in which customers can claim their rewards and it is delivered to them. Companies deliver various types of rewards through this systematic and automated technique. Customers who have won rewards would like to get it delivered to them as quickly as possible. In case of physical items, customers always expect their rewards to be in a perfect shape at delivery point.

    Customer’s Reaction: Why my rewards are not delivered in time, and at times, in a bad shape?

    Gamification Activities:

    These days gamification is one of the most talked about concept used in loyalty programs software. Many top brands have used gamification to a good effect to boost their customer engagement activities. People like loyalty programs, which are funny, interactive and offer feel good factor. According to reports, simple and plain gamification activities are most preferred by customers.

    Customer’s Reaction: Why should I stick to a boring loyalty platform without gamification features?

    Net Promoter Score:

    Net Promoter Score or NPS is determined on a scale of 10. This index determines how likely your customers would refer your brand to their friends and family. From customer’s point of view, they want to check NPS as it will help them to find popularity of any product among customers. Better NPS means, your customers are willing to share your product or brand.

    Customer’s Reaction: What NPS is ideal for determining popularity of any given brand?

    Prompt Customer Service:

    Success of business lies in the quality of customer service ethics they adopt. Customers never digest the feeling of being neglected. Time, money and efforts of customers are as important as your business and therefore when they see negligence from companies in offering proper pre or post sales services, they tend to move to competitors. Likewise, people tend to move to companies which offer prompt and courteous customer service.

    Customer’s Reaction: When my queries will be answered? How long I have to wait for the customer support response?

    Easy-to-use Widgets:

    Considering from a customer’s point of view, rarely any of your users would like the idea of using intricate widgets for sharing or referral activities. Customers like to get involved in loyalty programs management campaigns, which have widgets with one-click features. Such easy-to-use features increase the rate of brand promotion by a big margin.

    Customer’s Reaction: Why this referral sharing widget is complex one? I have seen many easier ones.

    Data Safety:

    According to your customers, they don’t like their personal data being shared on online platforms. Similarly, companies also don’t want their useful customer data to be exposed to competitors. Therefore, customers and companies – both, watch out for loyalty programs which guarantee safety of user’s personal data.

    Customer’s Reaction: How safe is my data? Will other companies have access to it?

    This is a fair checklist of features which customers can use while choosing their loyalty programs. These features also help them out in finding better companies for their products and services.

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