Loyalty Program: The Very Basics You Don’t Want to Miss Out
In chaos of competitive market, you need a team of loyal customers who thrive to rise to the occasion and contribute to your growth. Such customers are valuable asset for any type of business. They indulge in variety of activities to ensure your business is running along the right path. However, most important thing is to think, why your customers would be loyal towards your business, unless, you treat them really well. Make no mistake that customer relationship is bi-dimensional affair, where companies should pay attention to needs of the customers, and they reciprocate the gratitude with loyalty and support for your brand.
Famous American actor, model and martial artist, Taylor Lautner, succinctly stated:
“Honesty and loyalty are key. If two people can be honest with each other about everything, that’s probably the biggest key to success.”- Taylor Lautner
It is not pretty much clear, in what state of mind he was in, when he murmured these lines. However, this meaningful statement is very useful to our discussion here. In this sentence, there are few things that we need to understand first.
Honesty and Loyalty: From loyalty program perspective, your campaigns must be transparent, honest and fair, so that customers will engage voluntarily.
Mechanism of Relationship: Generally, formation of relationship takes place, when two or more entities are involved. In case of loyalty programs, business and customers are two common bodies, who form a relationship to benefit each other. Customers bring more business leads and company pay them back for their efforts.
Success is the Output: When any relationship is nurtured on true lines of honesty and loyalty, end result is success. Both, companies and customers get their share of success from this commercial partnership.
This, you can say, is a very philosophical thought behind loyalty program; in fact it also is ground reality for most businesses today. Many businesses have already adopted loyalty programs, and – those which haven’t adopted yet are planning to join the bandwagon soon.
Get Familiar with Theories of Loyalty Programs
Most interesting thing about loyalty programs is you can prioritize your features as per your requirements and still experience the success as other companies are getting. In such campaigns, you are not limited within any given periphery. There is lot to explore and with expert support you can keep decoding the secrets of customer loyalty. However, there are some explicit theories about online loyalty marketing you can get inspiration from:
Understanding Customer Expectations:
Customers are/were always at the realm of loyalty programs. Understanding their expectations is one of the most vital aspects of developing and maintaining any campaign for better results. There are factors like rewards options, easy engagement features, Net Promoter Score (Score to determine how likely customers will refer your business to their friends and family), customer service, technological elements, etc, that influence customer’s decision for acceptance or rejection of loyalty programs.
Read loyalty program from customer’s perspective for detailed insight into this theory.
Should I have a loyalty Program?
Another very important theory lies in determining whether loyalty programs are befitting for your business type or not. While many businesses adopt these programs without any hesitation, few keep wondering if they should give it a go or otherwise. In both the cases, companies do their calculations to determine how, when, what, etc, features to make apposite decisions. Bottom line is loyalty campaigns are useful for most type of businesses these days; however, you should work out your reward options carefully. For example, in case you are delivering with products which are not purchased frequently, you should opt for big one time reward to attract customers.
Read important reasons to determine why loyalty program is important for your business.
Best Practices for Loyalty Programs:
Any business in the world is prone to be affected by some set of internal and external factors. In such a fragile market, you are considered wise head if you do your tricks to understand factors, which affect your business and possibly your loyalty program as well. Segmentation of customers is crucial tool that gives you flexibility to manage your customers effectively. Ideology behind this theory lies in prioritizing your customers according to their contribution to your business.
Get through this quick guide of internal and external factors that affects loyalty program.
Loyalty Program for eCommerce Business:
Vast number of internet users has attracted companies to have eCommerce versions of their businesses. Hence, now days, be it grocery, clothing items, electronic gadgets, lifestyle products, etc, everything is available for online shopping through highly popular eCommerce business models. To boost customer engagement and retention on your eCommerce portals, you should consider having loyalty program tailor made for virtual sharing and referral activities.
Understand ethos of loyalty programs for eCommerce business to optimize your campaigns for effective results.
Theory of Relationship between Loyalty Programs and Customer Service:
Over and over again, through the medium of reports and studies, market research firms have revealed astonishing facts about customer service and its significance in customer retention. It is therefore not a mystery anymore for comprehension that companies which gives precedence to customer service, have better chances of retaining their existing customers and at the same time acquire new ones. In short, you can say, they get double benefits by optimizing customer service.
Unfold the mystery of deep relationship between loyalty programs and customer service to boost customer retention rate of your business.
This info can be used as reference guide while developing loyalty programs. Companies and their marketing associates should have an eye for these details while creating their campaigns. Majority of companies ignore importance of these details and find they are going nowhere, and scratching their hoofs at the starting point.
Extra Mileage for Starting Now
Remember, if you haven’t developed loyalty program yet, you are already behind the companies who have their campaigns running. However, by starting now you get extra mileage in comparison to the companies, who haven’t started yet.