Loyalty Program: The Very Basics You Don’t Want to Miss Out
Rohit Singh VP of Customer Engagement Schedule Free Consultation
  • In the chaos of a competitive market, you need a team of loyal customers who thrive on rising to the occasion and contribute to your growth. Such customers are a valuable asset for any business. They indulge in a variety of activities to ensure your business is running along the right path.

    However, the most important thing is to think about why your customers would be loyal to your business unless you treat them well. Make no mistake that customer relationship is a bi-dimensional affair. Companies should pay attention to the customers’ needs, 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 evident in what state of mind he was in when he murmured these lines. However, this meaningful statement is beneficial to our discussion here. In this sentence, there are a few things that we need to understand first.

    Honesty and Loyalty: From a loyalty program perspective, your campaigns must be transparent, honest, and fair so that customers will engage voluntarily.

    Mechanism of Relationship: Generally, the formation of a relationship occurs when two or more entities are involved. In the case of loyalty programs, businesses and customers are two standard bodies that form an association to benefit each other. Customers bring more business leads, and the company pays them back for their efforts.

    Success is the Output: When any relationship is nurtured with honesty and loyalty, the result is a success. Both companies and customers get their share of success from this commercial partnership.

    It is a philosophical thought behind the loyalty program; it is also ground reality for most businesses today. Many companies adopt loyalty programs, and – those who do not are planning to join the bandwagon soon. 

    Get Familiar with Theories of Loyalty Programs

    The most exciting 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 a lot to explore, and with expert support, you can keep decoding customer loyalty secrets. However, there are some explicit theories about online loyalty marketing you can get inspiration from:

    Understanding Customer Expectations: 

    Customers are or were always in 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, accessible 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. influence customers’ decisions for acceptance or rejection of loyalty programs. 

    Read loyalty program from the customer’s perspective for detailed insight into this theory.

    Should I have a loyalty program?

    Another critical 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 cases, companies do their calculations to determine how, when, what, etc., features to make apposite decisions. The bottom line is loyalty campaigns that are useful for most types of businesses these days. However, you should carefully work out your reward options. 

    For example, if you are delivering products that people do not purchase often, you should opt for a big one-time reward to attract customers.

    Read important reasons to determine why a loyalty program is essential for your business.

    Best Practices for Loyalty Programs:

    Any business in the world is prone to have some set of internal and external factors. In such a fragile market, you are a wise head if you do your tricks to understand factors that affect your business and possibly your loyalty program. 

    Segmentation of customers is a crucial tool that gives you the flexibility to manage your customers effectively. The 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:

    A vast number of internet users has attracted companies to have eCommerce versions of their businesses. Hence, nowadays, 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 a loyalty program tailor-made for virtual sharing and referral activities.

    Understand the ethos of loyalty programs for an eCommerce business to optimize your campaigns for significant results.

    Theory of Relationship between Loyalty Programs and Customer Service:

    Over and over again, market research firms have revealed astonishing facts about customer service and its significance in customer retention through the medium of reports and studies. 

    Therefore, it is not a mystery anymore for comprehension that companies that give 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 the profound relationship between loyalty programs and customer service to boost your business’s customer retention rate.

    Quick Conclusion 

    This information is just as a reference guide while developing loyalty programs. Companies and their marketing associates should have an eye for these details while creating their campaigns. The majority of companies ignore the 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 do not develop a compelling loyalty program, you are already behind the companies who have their campaigns running. However, you get extra mileage by starting now relative to the companies that haven’t started yet. 

Align Your Company, Your Teams, And Your Individual Employees To Foster A Company Culture Rooted In Success.



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