Rewarding Customers
I am sure you recognise them. Yes, they can take different forms but we know them all. We’ve known, collected and used them for years. From small cards with a template of empty boxes to be filled with inky stamps to dingy, uneven sheets with a few flying pieces to be eventually ripped off. No matter how visually (un)pleasant loyalty cards you have seen in your life, according to the statistics, there is a 77% chance that you, too, are a member of at least one loyalty program. Does it necessarily mean that your wallet has to be exploding by the excessing number of random cards that you eventually will not care about? Anyway, why would you even be willing to be loyal to any retailers, services or products? And, actually, why would companies consider rewarding customers for being loyal to them?
Let’s point out a few key factors why loyalty actually matters for both customers and retailers.
The sense of belonging = driving sales
Over 75% of consumers who belong to certain loyalty programs believe that it is the best way of maintaining a relationship with a brand. By receiving bonuses, gifts and rewards they feel as a part of the brand to which they do not only contribute to but which they create. They do so by simply buying what the company provides. And when doing so, they drive sales of the company. It is a pure win-win situation – you buy what they offer, you enjoy it and as a sign of appreciation for your loyalty you get rewarded.
Customer-company interactions control
Loyalty programs tend to serve as a good indicator of relations between customers and companies. Unhappy clients seem to change companies right after they encounter an unpleasant experience. However, being a part of “the family” requires some devotion. Companies will do whatever it takes to meet their customers’ needs. They will never be let go easily because their presence means money. Their disappearance means loss. No mathematical calculations required to draw conclusions, right?
Trust-building
We all love to feel special. Remembered. And taken care of. Then, when we get a bonus or some extra points on our birthday from the favourite retailer we treat it personally. That happiness effects in locating our trust and, again, loyalty to the company. The statistics speak for themselves – acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one. Why would a company waste their resources on finding new clients when, instead, it can focus on the existing ones? Creating repeat customers proves to be extremely beneficial. Percentage-wise, loyalty program members generate between 12% and 18% more profit than non-members.
Digital era has rewarded us all, regardless of our attitudes toward loyalty programs. It gave us paperless, trouble-free and effortless technology. No surprise, then, that 57% of customers happily engage with their favourite brands via mobile devices. Their engagement, or for the purpose of this article let’s call it loyalty, can be assessed and accessed at any time and place. Then, how surprising is the fact that almost 50% of consumers are not aware whether there is an app associated with their loyalty program? Also, even if they do, they are very likely to switch to different providers when dissatisfied with the user interface and customer service.
The conclusion is pretty obvious. Why risk losing potential profits and loyal customers by introducing a poor reward program? Instead, let’s focus on choosing a smartly designed scheme that values both traditional and digitally-oriented customers who can freely customise their needs and priorities. One golden rule to be remembered is that consistency effects in loyalty, not the other way round. It is not marketing or the fixation on points earning at the top of the hierarchy. It is the experience of consumers that matters the most. Think is extremely proud to launch an innovative, user-friendly loyalty system that can be used via web and mobile applications as well as by conventional cards. Loyale.io introduces a totally unique experience where customers’ needs can be personalised. Redeeming rewards can take a form of reducing the bill or exchanging them for items valued at a predefined amount of points. No limitation in terms of points’ access – they can be redeemed both online and at physical shops. Customers who decide to return to their favourite retailer after a while of absence can enjoy special “welcome-back” rewards! The system uses iBeacon technology that helps staff allocate triggers based on proximity with particular beacons. To put it simply – the retailer or other business, knowing that a customer is within a short distance to a certain product or service, can send special notifications and offers concerning it. No unwanted spam, only personalised offers. Loyale.io serves to make rewarding customers easy, while making them feel safe and appreciated. And it gives companies an efficient tool to guarantee that.
