Does improving customer engagement through loyalty programs, boost revenue? And if so, by what margin?
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Did you know that 84 percent of customers say they are likely to buy products from a retailer that has a loyalty program? Or that 75 percent of consumers are more willing to make another purchase after they receive an incentive?
Loyalty programs have been on the radar of Australian marketers for some time – possibly even a few of your competitors run them successfully. They can use information like the statistics above either as a trigger for launching their first loyalty program or as a means of improving those currently in use, making them even more immersive.
Companies, especially those that are well informed about how customer engagement works, want to build thousands of customer relationships using just loyalty programs because they know how profitable it can be. Recent studies confirm that it costs less to retain clients than to attract new ones. Add to that the fact that loyalty program members generate from 12 to 18 percent more revenue per year. Ultimately, if well designed, loyalty programs can help companies turn their marketing departments into actual profit centres.
Building a successful loyalty program is easier said than done.
A loyalty program will never fly if it’s poorly designed
It is true: a loyalty program will never fly if it’s poorly designed. Also, loyalty programs seem to have their own rules for becoming successful endeavours. Some of those rules can be pretty specific, determined by the company’s goals, size, industry and technological maturity. Others may seem more or less universal, but we need to be realistic – just as there are no two identical companies, there are no two identical loyalty programs. It means that you may follow the rules, but the results can still be somewhat different from what you expected. Therefore, you should monitor your progress daily and make adjustments to your design where necessary. With close attention, you will be able to realise your customer loyalty vision.
Having a comprehensive and reliable loyalty management platform helps, but the system will not run itself. You are the operator; therefore, you make the choices that will define your program’s success. If you were a writer, a loyalty management platform would be your typewriter. Following this analogy, what we would then see on the printed page would be your ideas and stories, and you’d want your audience to read them and become immersed in those worlds. It’s very similar to how loyalty programs come to life.
A loyalty program is a fantastic tool but it requires a good understanding of your audience and how to best engage them.
That’s only part of the whole ‘loyalty programs increase profits’ story
If you’re interested in building a successful loyalty program is and boosting revenue, there are rules for success that can be implemented Comarch, a global provider of software-defined products and services for improving business efficiency and driving customer loyalty, has created a free resource for businesses, outlining how to design your loyalty program for success from the experts.
The ‘How Loyalty Programs Boost Revenue – And How to Measure It’ ebook provides stats, expert analysis and other evidence to prove that loyalty programs can help businesses turn their marketing departments into profit centers. It also includes the company’s top loyalty program design recommendations and advice on how to measure your customer engagement progress.
Click HERE to get your free copy right now.
Photo by freestocks on Unsplash.
