Today it is easy for discerning shoppers to compare your products and prices in a few clicks. Either you join in on the pricing race or invest in a loyalty program to attract customers by differentiating your offering.
Two of the main reasons to implement a loyalty program are customer retention and personalization, but there are of course other benefits with a customer focused approach. A loyalty program increases overall revenues by 5-10%, and on average a member spends 5-20% more than a non-member and visits you 5-20% more frequently*. If you still aren't inspired enough to get started with Voyado and a customer program, spend a few minutes to read the below.
Customer data – the new oil🛢
Loyalty programs and/or identified customers provides your company with a deep knowledge about customer profiles, their behavior, buying habits and preferences – a 360 degree view. Data can be used to increase personalization, segmentation and tailored offerings. A variety of departments can profit from available data, since it can be used as input for product development, pricing, marketing campaigns or range development.
Customer Retention – There must be a reason to come back
Thanks to good customer understanding, you will always be one step ahead and adapt your offering to your customers' needs and preferences. Process customer data to adapt content and tone of voice to inspire and influence them to make the next purchase. If you know what the customer needs before he/she does, you have a really good chance of providing a great customer experience, that in the end leads to retention.
Customer Lifetime Value – Engagement and satisfaction
Thanks to available data you can identify segments and tailor the offering. Smart utilization of data enables you to find cross- and up-sell opportunities. Once a new member has been on-boarded, your mission is to motivate them to make another purchase and increase both frequency and spend.
Up- and cross sell is not only about selling more products but also about broadening customer engagement in all channels. Identify offline visitors and make them interested in exploring the online offer. And the other way around. Online shoppers must understand the advantage of a store visit.
Did you know that multichannel shoppers spend 3 times more than single channel shoppers, and customers who engage on multiple channels visit stores 23% more often**? A sufficient reason to push for a multichannel engagement.
Personal relationships – A win-win situation
Brands that create personalized experiences are seeing revenue increase by 6 to 10 %. That’s 2-3 times faster than those that don't***
A loyalty program offers a direct line to customers, making communication much easier. Once again - customer data is the key to success. Tailor newsletters and landing pages to improve the experience. Information such as abandoned carts, clicks, and product recommendations should not be isolated for online visitors only. Customer data must also be available and actionable in store. Enable an excellent customer experience, and personal offers by providing the staff with the required tools and understanding of their contribution to success.
44% of customers who have had personalized experiences are likely to become repeat buyers, and they have a 3x greater lifetime value.**
Identify discerning customers – Win-back strategies are required
You might have a large member base, but do you know how many of your customers that are active buyers? A large amount of inactive members cost more than it brings. Identify the segments by a simple “have not purchased in x months model” or churn score analysis and re-activate them before it is too late. Research out of the Harvard Business School has shown that even a modest 5% increase in customer retention can increase profits by up to 95%. Remember to personalize the re-activation initiatives to increase the chance of inactive customers reacting positively to your offering. Don't wait too long before activating the campaigns. The longer it's been since each customer slipped away, the harder it gets to reactivate them.
**BI Intelligence Jan 2017, Euro IT Group 2016, Harvard Business Review 2017
*** Boston Consulting Group, May 2017