Loyalty programs are innovative ways to draw the attention of customers in a very competitive market. They have been made use of by businesses for over 30 years to increase the number of repeat consumers by offer incentives like cash back for purchases over a certain amount or points for a free food item. Worthwhile these programs not only help to boost sales but also help to retain customers and provide that all useful data on customer behavior. Such programs can also bring in new consumers and increase the spending of already existing consumers. Businesses have continued to concentrate to find innovative ways and means to expand their loyalty programs.
.jpg)
Loyalty programs are usually found attractive to already existing consumers and they fail to attract the competitor's customers. Most loyalty programs offering similar rewards and failing to differentiate themselves from others will not appeal to new consumers.
These days there are many compelling ways to boost to your market share with innovative programs. Gone are the days where the typical one-product-suit-all mentality to loyalty marketing. It is no longer the powerful tool it once was for generating customer loyalty. Now loyalty programs need to be designed in such a manner so as to drive loyalty by offering valuable incentives and rewards to customers and should include more specific offers.
Drive Loyalty:
Combining loyalty into the entire experience is important when designing a unique loyalty program. As shoppers feel honored to be identified by a particular store as their frequent customers, this recognition should be made tangible through special offers that are meant only for members. Permitting non-members to have access to rewards or discounts reduces their appeal. Offering special offers exclusively for members will help to entice new consumers to become a part of the program. These rewards can include points to be made use of for a particular item to draw people who just shop for pleasure, reduction in prices for those motivated economically or giving access to checkout counters or priority lines for those wishing to save time while they spend shopping.
Valuable Rewards:
It is seen that shoppers often change their spending behavior depending on the reward and if they feel that the reward will be of value to them. So a points program where a huge number of points are needed to redeem a reward that is insignificant only devalues the whole program. Therefore, it is crucial that while designing a loyalty program, care must be taken to make it worthwhile for the customer. What this means is that the value of the reward should never be higher than its cost.
Companies will go on exploring loyalty programs and find ways to differentiate themselves from their competitors. Even though the strategies discussed above are inter-related, its success depends on designing such programs that are unique in itself and stands out from its competitors, segments customers to identify them individually and finally, and most important, on establishing new and broader contact with customers.
With a tailor-made loyalty program to meet your goals for customer acquisition and retention, using instant and interactive gratification, you can take your customers confidence and engagement to a new soaring heights & increase the share of his spending on your brand/product.
Article Source: http://EzineArticles.com/?expert=Bhawna_Vikram_Kumar
No comments:
Post a Comment