The success of any loyalty program relies entirely on its active member engagement. Thus, loyalty management solutions capture a significant position. They aim at the strategic management of a company, making the company resources employed to meet or surpass the corporate objectives by increasing the loyalty of the customers. They allow marketers to frame continual customer engagement by delivering timely, innovative and relevant propositions.
Making loyalty work for them, the marketers can engage the customer proactively with a wide range of compelling offers, designed to encourage customer involvement, spending levels and usage. These offerings, in turn enhance customer acquisition and retention. Thus, there have been searched some essential tools, processes and people to support customer loyalty management.
Loyalty management solutions must be designed in a way that they well-target the customers to ensure their active participation in order to drive profitability. The markets can keep in their minds the various aspects of the key customers and their behaviors; identification of loyalty driving factors and designing personalized incentives on the basis of multiple attributes like product affinity, life-stage, location, channel, spending, visiting frequency etc.
Earn and Trade Points- Marketers provide some incentive to the member customers to spend more. They provide greater gratification with incentivizing to the ones who spend more. In addition to the basic transactional credit, the marketers sustain the active participation of the members by extending options like Free Bonus Points, Points Transfer, Win Back Points, Gift points and top-up points.
The members, who redeem reward points, stay engaged with the loyalty program. The redemption can be defined in form of rebates, points, cash-back, discounts or even in a combination of these.
Rewarding Experience– Loyalty management solutions offer a variety of time-bound incentives such as exclusive deals, gift catalog, instant rewards, sweepstakes, daily deals, local deals etc. to drive higher participation and continued activeness.
On-the-go rewards- The rewards allow the marketers to interact with the customers over the course of the program, rationalizing the serving cost. The rewards allow the customers to gift or transfer points, refer friends, track and redeem points, view current offers, provide feedback etc.
The loyalty management solutions help the marketers enhance customer spending, in turn enhancing a profitable customer behavior. They not only present a favorable situation for the markets but also they work in favor of the customers.
Benefits for Marketers:
- Increased member involvement
- Assured engagement
- Higher customer retention
- Better customer knowledge
- Enlarged membership
- Ancillary revenue generation
- Enhanced customer profitability
- Decreased integration cost
Benefits for customers:
- Usage ease
- Higher flexibility
- Frequently rewarding
- Higher value for money factor
- Better service experience
The loyalty management solutions require actionable analytics in order to gauge program effectiveness against the indicators of a critical performance. Customer Churn cannot be treated any better than through loyalty management solutions. After all, customer retention is always more important than acquiring new customers. Thus, loyalty management solutions make a very significant space for themselves.