Loyalty Programs: How to Enhance their Value for Your Business

Loyalty programs are one of the best marketing strategies that businesses can use to build customer’s trust while maintaining their brand value. To create a successful loyalty management platform, it is vital to focus on online and offline communications channels and create an omnichannel customer experience. 

Today’s customers prefer to communicate with businesses using their communication medium. If consumers are unable to do so, they may move to some other brand. That’s why you should use omnichannel communication solutions.

Enhance loyalty programs with omnichannel solutions or risk losing customers © Kaspars Grinvalds | Dreamstime.com

Why are Loyalty Programs Important?

A well-built loyalty management program can help to make a stronger brand identity. Besides, it will help boost a long-lasting customer relationship while reducing the chances of customers considering other brands’ products or services.

To enhance the value of loyalty programs, businesses must utilize them to deliver positive customer experiences. Positive customer experience leads to improved brand value. Businesses must also use the insights from loyalty programs to generate data-driven solutions to customer’s issues. 

Ways to Enhance the Value of Loyalty Programs

Here are four key ways businesses can improve the value of their loyalty programs:

1. Focus on offering attainable rewards: Businesses must balance achievable and desirable benefits when building a loyalty management platform. Doing so will make customers feel rewarded after shopping with your brand while offering them the benefits that they expect to earn. So, how to determine whether a loyalty program is offering attainable rewards or not? Well, businesses must analyze how frequently their customers redeem their loyalty benefits.

If customers are not using the loyalty program frequently, then businesses must make a few changes in their loyalty program to make it work as planned. One of the best ways to make a loyalty program work smoothly is by offering instant gratification. By giving out points or other loyalty benefits fairly frequently, businesses can enhance the value of their loyalty programs. Businesses must ensure that their highest value customers get a tangible benefit within the first three months of joining the loyalty program. Also, the other loyalty members must receive the loyalty benefits within six months of joining the loyalty program. An instant attainable reward helps to build customer loyalty as well as brand value.

© Albertshakirov | Dreamstime.com

2. Use gamification techniques to build customer interest: Many loyalty programs offer points as loyalty benefits. Customers often don’t know what those points are for and how they can benefit from collecting those points. To make this process exciting, brands must use the gamification technique.

Gamified loyalty programs can help to divide customer loyalty into different levels. By earning certain points, customers can reach different levels that indicate their performance. This gamification technique will not only help to boost customer’s excitement but will also give them a sense of achievement. This technique will attract customers to visit the brand, again and again, to gather all the points and reach a certain level. Ultimately, it will help to enhance the brand image as well as the value of a loyalty program.

3. Utilize omnichannel solutions to personalize customer experience: Today’s customers value a personalized approach more. When they receive a personalized experience, they feel more valued and closer to a particular brand. With the help of advanced technology such as omnichannel communication solutions, businesses can easily collect essential insights and data about their existing as well as prospective customers.

Businesses can utilize this data to build a loyalty program that delivers personalized touch to the customers — data such as which communication channel a customer often uses to get in touch with a brand. Based on research, businesses can use these channels to engage with their customers and encourage them to visit the brand again and again. When customers is near earning a reward, brands can use a personalized approach to encourage them to visit the store.

4. Build Customer Lifetime Value: Customer lifetime value (CLV) is simply the net profit accredited to the overall relationship that a business has managed to maintain with a customer. It helps to determine how valuable a customer is now for a business and how this relationship will help the business in the future. With the help of advanced loyalty program software, businesses can determine exactly what the CLV is for each of their customers.

For instance, businesses can collect information about customers’ unique buying habits, offers they like more, the channel they prefer to connect with the brand and various other details. Based on the information received, businesses can build solid strategies that enhance the value of their loyalty programs and help them retain their valuable customers for long.

© Alexandersikov | Dreamstime.com

Find out more about the CommBox smart customer communication solution

Conclusion

Achieving brand loyalty requires fulfilling customers’ needs and requirements from the brand they purchase from. Gathering all the data from the moment customers sign up for the loyalty program to the moment they redeem a reward, can help businesses understand their customers’ unique needs. Doing so will further help them to improve their strategy and the value of their loyalty program. To build a perfect loyalty program strategy, businesses must focus on key areas that encourage customers to stick with the particular brand.

Loyalty management platforms like LoyaltyXpert, AnnexCloud, and Comarch allow businesses to improve their brand value and profits. Combined with omnichannel customer communication solutions such as Commbox, you can easily engage more customers and enhance brand loyalty.


© Jakub Jirsák | Dreamstime.com

About Commbox 

Commbox is an AI-powered omnichannel customer communication platform, allowing you to increase customer engagement and long-term brand loyalty. Using the Commbox platform, companies and enterprises can automate recurring tasks that are excessively time-consuming, allowing your agents to focus on more important tasks. Commbox paves the way for autonomous business communication without losing the quintessential human touch.

Commbox’s mission is to pave the way for companies worldwide to become autonomous enterprises, without losing their quintessential human touch.

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