Identifying which loyalty program company is best for your business?
Be it a business or an individual, we all have placed loyalty at the top of the list. However, for businesses customer loyalty is a driving force that keeps them in the competition and to reward such loyal customers, businesses have started integrating loyalty program in their marketing strategy and keep the loyal customers.
From the large options of customer loyalty program available in the market to choose from. It often becomes a challenge for brands to figure out which loyalty program would be most effective and suitable for their business.
Hence, in this blog we will help you understand and identify the best suitable loyalty rewards program and loyalty program company to offer you best results.
Defining Basics of Loyalty Program
In its essence a loyalty program is a marketing strategy being implemented by any business or brand to reward the loyal customers and ensure repeat business from the customers. In this process brands offer various benefits such as discount coupons, gift cards, free gifts and other additional benefits.
Furthermore, the customer loyalty program is designed in such a way that it is beneficial for both the parties involved and leaves the customer with a satisfactory experience with the brand. However, it is often challenging to identify and design the perfect loyalty program for your brand which covers all the major aspects. Hence, it is recommended to get a suitable partner such as RewardPort to help you throughout the process.
The biggest benefit of integrating a loyalty program company such as RewardPort is that you can get customized loyalty program as per your requirements and pick the suitable aspects.
Benefits of Loyalty Program
Here are some of the most important benefits that you can reap off leveraging a loyalty rewards program.
- Building customer relationships
First and foremost integrating a loyalty program in your marketing strategy would allow you to build a strong relationship with your customers, offering them a sense of belonging and connection with the brand.
- New customer base
Once you start implementing a loyalty program your loyal customers will do a word-of-mouth marketing for your brand which would push their peers, friends and family to get an experience with your brand. Hence, expanding your customer base and helping you acquire new customers.
- Increased sales, revenue and profit
Since we have already established this will help you gain more customers it is only logical that this will further help you get more sales, generate more revenue and hence more profit as well.
- Brand recognition
Since more and more customers will be getting connected with your brand, and your loyal customers will be doing word-of-mouth marketing for you, this will help your brand get more recognition in the market.
- Customer satisfaction
Customer loyalty program is one such aspect which is implemented for offering benefits to both the parties. Having said that, a loyalty program would result in certain rewards or additional benefits to the customers which would offer them a certain level of satisfaction.
What to Consider?
Now that we have established the benefits and the purpose of integrating a loyalty program in any business, let’s have a look at some key points that you need to consider when designing your customer loyalty program.
- Data driven insights
Always look for data driven insights before you start designing any customer loyalty program for your business. Data will always help you put together a clear picture and help have a better understanding of what is required and what is expected out of this loyalty program.
- Define the purpose
Define the purpose of integrating a customer loyalty program in your business. Define if you are trying to expand your customer base, maintain the loyal customer base or spread a word of marketing for your business.
- Target audience
Next step is to get a clear understanding of your target audience. This will help you devise your strategy in a better manner. Your target audience will help you get better insights about your business plan and what you wish to achieve via the loyalty program.
- Prioritize customer service
When designing your loyalty rewards program, always prioritize the customer services. Focus on offering your customers enhanced services. This will help your customers have a sense of connection with your brand and further allow them to create a bond with the brand.
Furthermore, prioritizing customer service will allow your customers to feel valued which is going to contribute to the success of your brand in the long run.
- Understand the customer needs
When designing your loyalty program rewards first understand the needs of your customers, then decide for the rewards that you want to offer. Don’t go selecting random rewards that are not aligned with your customer’s needs.
- Rewards optimization
Optimize your rewards at a regular interval to offer the customers a fresh and new feel instead of repeating the same rewards. This will further allow the customers to look forward to the rewards with your loyalty program. Always maintain the element of surprise in the program.
Loyalty Program with RewardPort
For a brand it is important to maintain and reward loyal customers. Hence, it becomes a necessity to integrate a loyalty program in their marketing strategy. In the above discussion we have already established the contributing factors, benefits, and key points to consider while integrating a loyalty program.
Furthermore, it is important to integrate customer loyalty program with the right partner such as RewardPort where you can get the program customized as per your needs and leverage different programs and services such as Sweepstakes, CineRewardz, Scratch2Win and various others from the entire offerings.
Frequently Asked Questions: -
Implementing a loyalty program would help you to offer your loyal customers with rewards and additional benefits for their loyalty towards the brand. It further helps you to establish a bond with your customers and ensure a long term relationship.
For implementing a loyalty program, define the purpose, find your target audience, set the rewards as per the customers needs, and start the campaign making customers aware of the benefits and rewards.
Implementing a loyalty program requires you to first identify the audience group or target audience. Next step is to decide for the rewards that you wish to integrate in the program and how you wish to communicate regarding the same with the audience.
7 Loyalty Program Rewards for Small & Medium Enterprises
More and more brands are now adopting the concept of loyalty program rewards to retain customers. Research shows that over 90% of companies, whether small, medium, or large enterprises, have a loyalty program today. Businesses must have effective strategies to boost customer retention and stand out in a competitive market.
Running a loyalty program is the most used and effective way to encourage customers to stay loyal to a particular brand.
Loyalty program rewards motivate customers to turn into repeat buyers. However, a loyalty program will work only if it aligns with the interests of the customers and the business. A loyalty rewards program that works for a large-sized business might not be suitable for other small brands.
Here are some best loyalty program ideas for small and medium enterprises:
1. Loyalty Points
Points-based programs are one of the most common loyalty programs for businesses of any size. Such loyalty programs aim to motivate customers to stay loyal to a brand. Under these programs, customers receive a few points every time they purchase.
The number of points is fixed against a certain amount spent on the brand. For example, you can offer 10 points on every spend of Rs. 100 to your customers. If they make a purchase worth Rs. 1,000, they receive 100 points.
These points can be redeemed against various options available at a rewards portal or in the form of store credit that is redeemable for future purchases. You must ensure that the loyalty points are valuable for your customers to make these loyalty programs successful.
If your rewards program is not interesting enough for your customers, it cannot encourage them to repeat purchases and stay loyal to your brand. When the loyalty points are valuable, your customers feel they are getting something in return for their spending and will be motivated to repurchase.
2. Referral Purchase Rewards
Referral purchase rewards are the rewards/benefits customers receive for referring a product to their friends. Under these programs, your referring customers and their friends (to whom they refer your products) get some benefits.
However, the terms and conditions for receiving the rewards can be different with different referral programs. Some programs offer rewards/discounts as soon as customers refer a friend. However, other programs reward them only when their friend signs up or makes a purchase.
The latter is a better option. You can run a referral purchase rewards program under which your customers receive decent benefits when their friend signs up to your website and makes a purchase. You can also keep different rewards for different levels in the referral process.
For example, your customers receive a certain number of reward points when they refer a friend, then they get a discount coupon when their friend signs up, and finally, they get a gift when their friend makes a purchase.
Referral programs are a great way to expand your market reach and acquire new customers. You can encourage your customers to make more and more people aware of your brand. The programs help you increase your brand awareness through word-of-mouth and boost sales.
3. First Access
Giving your customers the first access to your new products, flash sales, and discount offers is also an effective way to boost customer loyalty. Whenever a new product is launched, you can make it accessible to the registered customers on your website before it is available to others in the market.
Another way is to provide your customers early access to flash sales, discount offers, BOGO deals, etc., via e-mails or text messages.
With these loyalty program techniques, you can encourage your target audience to become your registered customers. Also, as your existing customers feel special when they get early access, they promote your brand through word-of-mouth.
The early access strategy works better for online businesses, where purchase does not require registration.
4. Charitable Activities
Giving back to society can be the best reward sometimes. Your rewards program can give your customers opportunities for charitable donations. Offer loyalty points to your customers for their purchases and let them redeem their earned rewards against charity.
Such programs can encourage socially conscious consumers to stick to your brand as they get to contribute to the charity through you. You can include different charity options in your reward redemption program and allow your customers to choose what they prefer.
Once they accumulate a certain number of loyalty points, the equivalent amount gets donated to charity in their name. The program becomes more effective when your charity partners are related to your brand.
5. Pay Later Accounts
Most top e-commerce companies provide ‘Buy Now Pay Later’ options in partnership with financial services companies. Pay Later is a small line of credit that allows customers to purchase and pay for it over a month or in installments.
The pay-later option makes it convenient for customers to make frequent purchases. Moreover, they often spend more than they would without this credit option.
By providing pay-later and EMI options to your customers, you can make them feel that you trust them and understand their needs. Customers with a line of credit with a brand are more likely to stay loyal to it.
6. Freebies
Who doesn’t like getting free products? One of the most effective ways to retain customers is by offering them freebies. Whenever your customer makes a purchase, surprise them with a random free product.
It can be anything as small as a free pair of matching earrings with the main outfit. If you have launched any new products, the best way to make your customers aware of them is to send them free samples along with their purchase.
You can also let the consumers redeem their loyalty points for a free product. The redemption options can include other brand vouchers, discount coupons, etc., to make the program more exciting. Using the word ‘free’ in your loyalty programs can be much more effective than it seems to be.
7. Limited Period Offers
Keep coming up with limited-period offers exclusively for your customers. When your customers make a purchase, you can provide them with a discount coupon that is only valid for a short period. Make the discount offer exciting enough to motivate your customers to visit your store back before the offer expires.
Offering great discounts for a limited duration creates a sense of urgency in your customers and prepone their purchases.
How To Build a Loyalty Program?
Almost every brand runs a loyalty program to retain customers today. However, the loyalty rewards program can be considered effective when it adds value both to the customers and the brand.
Here are some important points to consider when building a customer loyalty program for your business:
- The loyalty program must offer value to your customers. If the customers don’t find your loyalty program rewards valuable, they may not feel motivated to repurchase.
- Tie the rewards back to your brand to make the program more effective. You can offer rewards or cashback that the customers can redeem against your products.
- Keep a mix of instant and premium rewards for different segments of customers. Not every customer is loyal. Before offering premium rewards and benefits to boost loyalty, you can identify long-term customers and one-time buyers coming for discounts.
- Make sure that the rewards program is cost-effective for your business and that you don’t spend without analyzing the results.
Set up a Loyalty Program with RewardPort
RewardPort is one of the top loyalty program solution providers in India. With RewardPort, you can set up a loyalty program that works for your brand and fulfills your customer needs. Experts at RewardPort can plan and execute loyalty program strategies according to your business goals and consumer profile.
RewardPort helps you provide loyalty program rewards online and offline as your budget and consumers allow.
Frequently Asked Questions: -
Loyalty programs are the programs that businesses use to boost customer loyalty. Customers get some sort of reward every time they spend on a brand. These rewards can be in the form of loyalty points, cashback, or store credit. Customers can redeem the rewards against future purchases or other options from the brand.
Some most effective types of loyalty program rewards are store credit, loyalty points, rewards redeemable against charity, referral rewards, etc.
Some significant benefits of offering loyalty program rewards to customers include:
- Effective in customer retention
- Encourage customers to spend more
- Help you increase brand awareness through word of mouth
- Improve customer experience
7 Tips to inspire lifelong customer loyalty
We live in a world where new businesses are sprouting up everywhere. The marketplace is crowded, and customers have a plethora of options for every product or service category.
It is no longer sufficient for brands to simply provide a great product or service – modern consumers are far more demanding. They anticipate that businesses will be available to them even after they have made a purchase. Customers purchase more than just the product; they also purchase the experience and associated lifestyle that comes with their purchase.
In such a competitive environment, it is the relationships that brands develop with their customers that distinguish successful businesses from those that fail.
What is Customer Loyalty?
Customer loyalty refers to a relationship between a customer and a brand that extends beyond simple purchasing and selling. It’s all about making an emotional connection with your customers so they keep returning to your brand. A satisfied customer will always prefer you to the competition. They will drive word-of-mouth sales by recommending your products to others, in addition to significantly increasing their lifetime value (CLV) with your brand.
Customer loyalty is classified into two types: transactional loyalty and emotional loyalty.
Transactional loyalty refers to the value that a customer places on your company’s product or service.
Emotional loyalty is much more complex than that. It happens because of consistently providing great experiences to your customers over time. Emotionally loyal customers have a strong connection to your brand and will stick with you regardless of external factors. They will even go out of their way to reward their devotion.
Emotional loyalty is especially important for businesses because it is unconditional and is not influenced by factors such as price or convenience.
What is the significance of customer loyalty?
Customer loyalty refers to the possibility of your brand taking preference in consumers’ decisions while considering similar purchases. This is due to customer satisfaction, which outweighs availability, pricing, and other factors that influence purchasing decisions.
When a customer is committed to a product, service, or brand, they are willing to wait for a restock or pay a little more for it.
Customer loyalty is essential for a variety of reasons. These are the most important:
1. Customers who return spend more than new customers
Existing customers tend to spend more money than new customers because they already trust your company and its products or services. The amount they spend usually increases with the length of time they do business with your brand.
2. Customer loyalty results in higher conversion rates
Existing customers convert at a rate of around 60% to 70%, while new customers convert at a rate of 5% to 20%. In other words, loyal customers who visit your website provide more value.
3. Customer loyalty increases profits
The higher your customer loyalty, the higher your profits. Just a 5% increase in customer retention could boost business profits by 25% to 95%.
4. Customer retention costs less than acquiring new customers
While acquiring new customers is important, it can be costly – roughly five times more expensive than retaining existing ones. Retaining loyal customers is far more cost-effective, as they generate higher profits at a lower cost.
5. Customers who are regular shoppers
Repeat customers shop much more frequently than new customers because they’ve already had positive experiences with your brand. This is especially true during the holidays when consumers buy gifts and spend more than they normally would throughout the year.
6. Customer loyalty allows you to plan time
When you have loyal customers, you can make better anticipatory decisions and plan your finances and marketing efforts more effectively.
Tips to Ensure Customer Loyalty
Customer loyalty is not something that happens by accident. Here are some important tips to be followed for increasing customer loyalty:
1. Understand your customers (and let them know you)
You should get personal with your customers if you want to cultivate customer loyalty. Learn their names, stories, and purchasing habits. Treat each one as an individual, not just another paying customer.
For example, on a customer’s birthday, you could send them a personalized birthday message along with a discount. You should also send them emails that you know will be of particular interest to them.
2. Set up a customer loyalty program
A customer loyalty program is an excellent way to reward and encourage loyal customers. These programs typically have reward criteria (for example, the customer must spend X amount per month), but the benefits to the customer usually outweigh these requirements.
Customer loyalty programs come in a variety of forms, including credit card programs, punch cards, and point systems. They all have one thing in common: they all provide an incentive for customers to spend more money on your products or services.
3. Create a referral program
A referral program, like a loyalty program, rewards customers for their involvement with a business. Customers receive certain benefits in this case if they refer your company to a friend or loved one. This not only attracts new customers (referral marketing is both effective and inexpensive!), but it also keeps your existing customers coming back for more because they now have incentives to do business with you.
4. Use your strengths and values to your advantage
What does your company excel at? What distinguishes your services? What is the most important thing to you? Your responses to these questions will assist you in framing your brand, which is essential for attracting loyal customers.
To truly connect with buyers, you must stay true to your brand and focus on your strengths. Be a market constant – a company that customers can always count on to deliver.
“Don’t fix what isn’t broken,” as the saying goes. Don’t change your offerings or become unrecognizable as a brand unless you’re having trouble attracting and retaining customers. Instead, be as committed to your company as you would like your customers to be.
5. Use social media to interact with customers
Social media is a great way to broadcast directly to customers, prospects, and the public. Many consumers will perceive you as irrelevant if you are not present on social media. It is critical to maintaining an active business profile across multiple social media platforms.
Sharing behind-the-scenes information about your brand and products or services, as well as interacting with your followers, will help you build a strong online community that will entice customers to return for more.
Consider the companies with whom you frequently do business and how they conduct themselves on social media: Do their posts reach their intended audience? Is their brand voice consistent with their values and products? Do they genuinely interact with their followers? You most likely answered yes to these questions.
6. Encourage feedback from customers
Request feedback from your customers to demonstrate your appreciation and willingness to constantly improve. Send out surveys, solicit email reviews, and be open to feedback. Customers are more likely to invest in companies that value their feedback and insights.
Don’t just say you care about customer satisfaction; actually, implement it and market it to them as proof of your commitment. You must first be loyal to them to cultivate their loyalty.
7. Save customer information
Businesses that save customer data make it easier for customers to return in the future. You could, for example, allow members to create an account on your mobile app or website, which securely stores their shipping and payment information for a quick purchase.
As a result, they have a one-touch ordering solution rather than having to re-enter their credit card number every time they want to make a transaction.
RewardPort’s Bespoke Solutions
The key to customer loyalty is to respect them as individuals and to demonstrate that respect in your interactions with them. If you adhere to that philosophy, your customers will reward you with their loyalty. The greatest challenge is to run custom campaigns targeting a significant chunk (or the most influential) of your customers.
RewardPort is a business consultant with expertise in designing, executing, and implementing bespoke customer loyalty solutions. We can bring in the best practices and decades of learning experience to assist you in nurturing loyal customers for many years to come.
Unique gifting ideas for Christmas and new year to keep your customers happy
What better way to show your appreciation for your customers than to send them a customer appreciation gift on special occasions? Your competitors may try to win customers back with old “thank you” emails. You, on the other hand, can make a lasting impression.
The problem with gifts is deciding what to send. You cannot choose something that is too expensive or something that may be considered worthless. When choosing gift ideas, you must tread a fine line between cost and utility.
How to Market Using Gifts?
While the obvious goal of a customer appreciation gift is to show you care, it also serves another purpose: it promotes your online store. Customers should feel happy and appreciated, but it would also be nice if they recommended your store to their friends.
There are a few things to consider when using customer appreciation gifts as a marketing tactic.
Discounts vs. gifts
Using discounts and offers to increase sales is common practice in e-commerce. The question is how a discount compares to a gift in terms of marketing impact.
To answer this question, you must consider two factors:
- How frequently you offer discounts: The perceived value of a discount depends on how frequently you offer it. Customers may be uninterested in another discount, no matter how large, if you have frequent sales and offers.
- Value and terms of the discount: A steep discount with liberal terms may end up costing you more than a gift. Customers may be turned off if the discount is too small and the terms are too restrictive.
Surprisingly, consumer psychology research shows that people prefer to get more rather than spend less. A gift may have a higher perceived value because it provides more.
Of course, this only applies if you tell your customers you’re giving them a gift.
Explicit vs. Hidden Gifts
Should you inform customers about the gift or keep it a surprise for them?
Each approach has advantages and disadvantages. Informing customers ahead of time may persuade them to make a purchase, especially if they perceive the gift as a “deal.” Simultaneously, it deprives you of the customer delight that comes with a surprise gift.
What approach you take will be determined by your goals for the gift. Choose a surprise gift if your goal is to delight customers, build loyalty, and increase word of mouth (including social media).
If you want to use gifts as an incentive to buy more, tell customers about it right away.
Gifting to a Subset of Customers vs. Gifting to all Customers
Another conundrum is deciding who to gift – some customers or all of them?
The obvious disadvantage of gifting to everyone is the cost. You may not reap many benefits from gifting people who are inactive on social media or are unlikely to recommend you to their friends.
At the same time, only gifting a few customers may make them feel special at the expense of other customers. Customer B may be perplexed as to why Customer A received a gift while he did not. This can lead to resentment for your brand, which is the opposite of the purpose of gifting.
A better strategy would be to target your top 20% of customers. These are either customers who use social media or customers who fit your ideal customer profile. Because you want more of these customers, targeting them can produce better results.
Increase the Impact of Your Gifts
There are a few things you should keep in mind to get the most out of your customer appreciation gifts:
Customers are more likely to buy when there is a “mystery” involved in the purchase. Keeping the gift hidden can help in this situation.
Customers who receive something unexpected and free are more likely to shop again. As a result, it may be worthwhile to lose money upfront on a sale by making a gift. You can compensate by making additional purchases.
Giving away a freebie generates immediate word of mouth, especially if the gift is the customer’s first interaction with your brand. Thus, in addition to your top customers, you can target first-time buyers when giving away gifts to make a good first impression.
Concentrate on customers who are active on social media or have a history of sharing your products. Encourage them to post pictures of their gifts on their favorite social network.
Instead of giving a gift, consider donating to charity on behalf of the customer. According to research, charitable donations outperform practical gifts, especially when the original purchase was frivolous.
These are just a few ideas for making the most of your gifts. Your next task will be to choose the appropriate gift. We’ll go over some gift-selection guidelines below.
How to Choose Customer Appreciation Presents?
A customer appreciation gift is typically something physical, useful, and in some way related to your business. Its goal is straightforward: to thank customers for their patronage. The quality of the gift will determine whether it elicits a “wow” or an “eh.”
When choosing a customer appreciation gift, you must adhere to several guidelines:
◾ It should have perceived value:
Above all, the gift should have perceived value. Even if it is inexpensive, it must meet a customer’s need or appear valuable to the customer.
◾ It should be beneficial:
A good gift usually serves some practical purpose. Souvenirs and trinkets that serve no purpose are quickly forgotten. Every time the customer uses a useful gift, it will remind them of your company.
◾ It should be simple to store and transport:
No customer wants to deal with an unwanted gift that takes up too much space in their home. You also don’t want to deal with the hassle of transporting a large gift. Always opt for something small and convenient to transport.
◾ It should be long-lasting and durable:
A perishable or easily destroyed gift will quickly lose its value. Avoid fragile items or anything that could spoil in a few weeks.
◾ It should be business-related:
An ideal gift is business-related in some way so that it reminds the customer of you. If you own a fashion store, choose a fashion accessory rather than a macroeconomics book.
Conclusion
Keep your customer personas in mind when choosing gifts. Consider: what would someone in this demographic enjoy? A cheap gift card to a discount store, for example, would not work if your target customers make more than $200,000 per year and live in a wealthy suburb.
Make demographics the focal point of your gift-selection process, and you’ll never go wrong.
We at RewardPort offer you an amazing number of rewards that your customers can redeem across multiple categories. MCOG (My Choice of Gift) is simple for your young users to use and tends to make a profit and redeeming points a breeze.