In a fast-paced, increasingly digital marketplace, last year’s leader may be this year’s laggard. Here are a few questions to determine if a company’s loyalty program needs an update or refresh:
Are customers enthusiastic about the program?
Is it easy for customers to use the program across multiple channels?
How much sales growth and customer retention is due to the program?
How many customers are “points obsessed”?
Does the program treat them differently?
Is the financial return on the program satisfactory and commensurate with its cost?
Is your program able to answer the above five questions with quantifiable data?
Has the program been updated in the last three to five years?
Do you regularly hear stories of how the program is changing customer behavior?
Does the program have a plan for meeting the needs of the next generation of loyalty?
Many companies may find that the answers to these questions are either “no” or “we don’t know.” These companies will want to consider a plan to renew part or all of their loyalty programs.
What The Figures Say.
74% of consumers will go out of their way to shop at a store where they earn loyalty points.
More than half of consumers would “do almost anything” to earn more loyalty points.
80% of consumers get excited to find a new way to earn loyalty points.
38% of consumers reported a problem with a loyalty program in the last 6 months.
Also It is often hard to estimate the cost of promises you have made to customers. Companies need the right data and the right tools to analyze it.
Loyalty programs also need to forecast how external factors—including the economy and competitors’ programs—will influence customers’ redemption patterns.
Programs also should not change benefits and conditions without a firm estimate of the impact on liability.
Just like their parents and grandparents, millennials like loyalty programs. Over 90 percent belong to at least one loyalty program, according to a recent survey.
More than half belong to more than one in a single category.
It is important for companies to design loyalty programs to match their particular consumers’ preferences, not those of an entire demographic. But millennials’ expectations and behaviour do give several guidelines for developing the next generation of loyalty programs.
Loyalty programs are one of the best and most affordable paths to sustainable growth, if they are well-designed. But too many companies have merely tinkered with their traditional programs that were established years ago when consumer expectations and the competitive environment were much different.
Many do not even have the tools to measure exactly how their loyalty programs are currently performing, especially in such key areas as the effective use of consumer data.
The first step for any company is to get a clear assessment of how customers view your brand and your loyalty program and of how well that program is currently working.
With that analysis in hand, strategies to reinvigorate the program for your customers and your bottom line are now available to all SMEs.... JUST ASK FOR MORE INFORMATION.
By following a proven method of driving customer engagement to gain customer loyalty, companies can seize opportunities to strengthen relationships with their customers, build their brands amid increasing competition, and drive market growth.
In fact the next generation has already arrived, it’s based on decentralised apps run on Blockchain Technology and fuelled by the currency of crypto Coins/Tokens.
I call it Tokenomics and it’s about to change the world of business, both on line and off line.
This new revolutionary technology is going to prove to be a lifeline for many off line businesses with bricks and mortar locations due to its never seen before geotargeting capabilities.... And at a price point not thought even possible, until now
For more details on this paradigm shift in marketing and loyalty/rewards programs simply reach out to us for more info and your own personalised interactive presentation.