Salesforce’s survey of more than 12,000 consumers shows that customers in every industry buy more services from providers that offer a loyalty program.
Whereas marketers used to focus on product placement and advertising, they are now focusing more and more on the customer journey and connecting experiences — from the first customer contact to sales and support. It’s no surprise that loyalty programs are so popular. On average, it costs businesses six times more to acquire a new customer than it does to retain existing customers.
Loyalty programs not only keep customers coming back more often, but they also make it easy to cross-sell and increase sales. In addition, through these types of programs, customers share more data, allowing you to provide relevant and personalized offers based on their purchase history and thus continue to improve the customer experience. Satisfied customers will automatically bring in new customers by recommending your brand to family and friends. Enough reasons to focus on customer loyalty.
What is a good loyalty program?
The loyalty program rewards customers who regularly purchase from your company or show their participation. There are several ways you can reward customers, from offering free products or customized discounts to early access to new products. Every cent you invest in a loyalty program, you get out of it. Research shows that participants spend up to 18% more than other customers. And in the best case, the customer can become a true ambassador of your brand through such a program.
However, many loyalty programs today are not very successful. That’s because clients often join multiple programs at once and not every program is distinctive or interesting enough. Moreover, customers will not hesitate if competition offers them a better advantage.
Before rolling out a loyalty program, it is best to focus first on building a true customer-oriented culture. You can do this by improving communication with your customers through different channels – from social media to in-store service. Use the available data and give people the feeling that you understand their wants and preferences. For example, by making a personal offer when they are planning to buy something.
Tips to improve your loyalty programs
If the basis is correct, you can strengthen the relationship with the customer thanks to the loyalty program. In any case, make sure that customers take advantage of your program on a regular basis. Below we offer some tips for setting up a good loyalty program:
- Send a personal message to customers when they reach a new stage
- Increase the reward value the longer the customer stays loyal
- Work with partners so you can offer special benefits to customers
- Don’t just focus on discounts on future purchases, but also consider other original rewards, such as event tickets
- Create a unique and recognizable name for your software
Insights from your customer data form the foundation upon which you build your loyalty programme. As a marketer, you need a good CRM software, so that you can collect all the data in one central place. Customer loyalty platforms show how your loyalty program is performing and what people think of your brand. Useful data is for example customer retention rate (how long a customer spends with your company on average), negative variance (how many customers your company loses), net promoter score (how satisfied customers are) and customer effort score (how much effort customers spend in Solve a problem related to your business).
Are you ready to set up effective loyalty programs and keep customers in your business for longer? Learn from eight experts here how companies are taking customer loyalty to the next level and get inspired by examples of successful loyalty programs.
This article was published at the initiative of Salesforce