Contemplating whether your company should implement a loyalty Program?
Author: Irene Madeira
Contemplating whether your company should implement a loyalty Program? Ever wonder why they are so popular? Why are clients so hooked to these programs? What are their benefits and whether it is right for your business? Well think of it in this term, who doesn’t like to be rewarded, right? Forms of rewards such as free goods, promotions, secret items restricted to members-only, points/ gift dollar rewards and others create a sense of appreciation, community and belonging between a company and its customers. The customers’ benefits are clear however, the companies’ gains are far more advantageous. A loyalty program can provide a greater understanding of your existing customers, can build a strong consumer-company relationship, can provide a cost-effective growth in clientele, can drive repetitive sales as well as reduce discounting of goods/services. “The proof is in the pudding”. Listed below, are a few ways that Loyalty Programs can work in a company’s favor.
It is in human nature that people respond positively to motivating stimuli. Now if a positive stimulus is added once a desired behaviour has been done, this is known to be a type of conditioning called Positive Reinforcement (Cherry). A repeated action ending in a positive feeling can lead to form habits. Consider your customer’s purchase as the desired behaviour. Therefore, the positive stimulus would be the reward rendered by the company once the purchase has been completed. Rewarding customers for purchases will create a pleasant feeling for them that can encourage repetitive transactions. They will associate your goods/service with this pleasant feeling which will motivate them to return.
Not only do loyalty programs tend to drive repetitive sales, the content collected is priceless. Content collected through a sophisticated loyalty membership inscription creates rich profiles allowing the company access to bountiful information on clients’ buying habits and allowing direct communication with them through multiple channels. Rewards can be given to encourage registration for those who successfully create full accounts. With this, companies have the privilege of setting their own requirements within the program to retrieve information from their clients they deem valuable. Having valid information such as emails, telephone numbers, addresses, birthdays can lead to a better understanding of who your clients are. Along with acquiring personal information, companies can also point out dormant users and awaken them. Intelligent loyalty programs can specifically target these dormant users and can be used to develop personalized campaigns to revive these consumer-company relationships. It can encourage the inactive users to reconnect with the company, acknowledges that those clients have not been forgotten and inspires them to return.
The collections of who your customers are and their buying patterns, are important to identify. Once identified, advanced loyalty programs can be used strategically to avoid loss to your competitors. For instance, knowing who your top spenders are and being able to offer them extra rewards can keep them content and retain their loyalty. According to Brian Monger, it is more efficient and cost-effective to retain an existing customer then it is to recruit a new one. A different approach of distributing rewards can be to motivate your top spenders, which are likely to be your most satisfied customers, to engage through social media activity by “spreading the word” about their positive and memorable experience with your company. How about enticing your existing customers to refer-a-friend? These are alternative ways to reward your customers as active proponents to your brand. Use what you already have, your existing clients reach, to grow your own clientele.
Gone are the days of using discounts to entice customers into making purchases. When a company provides frequent discounts, they de-value their goods which creates a customer’s perception that the diminished value is its actual worth. From that point on, the client will expect to repurchase these goods at the discounted price which makes it challenging for the company to sell them at regular price. Whereas, with the proper loyalty program, offering the solution of earning rewards in the same value, diminishes any negative stigma that occurs through discounting. By reducing discounts and awarding rewards instead, the company will no longer lose upfront store sales but in turn, will keep the money circulating within its company until customers return to spend their earned rewards for future purchases.
Many loyalty programs could provide tools that are limited in service and in knowledge. The question remains, which loyalty company should be chosen as your provider. One that offers various tools using various partners exhausting your team’s energy? Or, one that offers various tools through one organic platform which maximizes your teams’ efforts and focus on getting customers to return.
With SEE MY APPLICATIONS (SEEMYAPPS), your loyalty business objectives are defined, coached and nurtured with the right tools and methods to generate the results your business deserves in producing everlasting experience with your clients.
The above demonstrates only a few advantages of implementing a successful loyalty program for businesses. All in all, there are plenty of perks on both sides, for consumers and businesses. This truly is a win-win situation and it is time to jump onto the Loyalty bandwagon.
Contact SEEMYAPPS today to see how you could build a strong sophisticated loyalty program.
SEE MY APPLICATIONS
SEE MY APPLICATIONS (SEEMYAPPS) is the simplest way to get your customer program up and running with the following services: Gift cards - Reward loyalty programs - Membership Enrolment – Refer-A-Friend – Tell-A-Friend - Communications - Surveys - Mobile APP - Ecommerce. SEEMYAPPS permits organizations to set up their own infrastructure and connect their resources to different customer centric engines focused on enhancing customer experience and expectations by fully integrating marketing, management and sales tools within a single platform in order to further the Organization’s business.
Cherry, Kendra. “Positive Reinforcement and Operant Conditioning.” Verywellmind, www.verywellmind.com/what-is-positive-reinforcement-2795412. Accessed 12 October 2018.
Monger, Brian. “Post Purchase Behaviour- Consumption Behaviour 2.” Dr Brian’s SmartaMarketing, www.smartamarketing.wordpress.com/2012/04/27/post-purchase-behaviour-consumption-behaviour-2/. Accessed 12 October 2018.
SEEMYAPPS (SEE MY APPLICATIONS) is the simplest way to get your customer program up and running with the following services: Gift cards - Reward programs - Membership Enrolment – Refer-A-Friend – Communications - Surveys - Mobile APP - Ecommerce. Every day, we have thousands of users nationwide using our platform. Founded in 2011, our team is based in Canada and is open to working with partners around the globe.
SEEMYAPPS (SEE MY APPLICATIONS) is the simplest way to get your customer program up and running with the following services:..