Loyalty program
Loyalty program is a major tool for managing a company’s customer relationships with the aim of providing mutual benefits.
The reasons for introducing loyalty programs are the company’s efforts to retain its current customer base or to differentiate the brand from its competitors’ offerings.
It also stands out as an opportunity to hinder the entry or expansion of another brand in the market or to get ahead of the competition and gain loyal customers first before others.
Modern technology contributes to creating more attractive loyalty programs and creating a personalized contact, making it possible to increase customer loyalty, in a more precise way than was possible before.
Another contributing factor is the existence of undivided loyalty customers who, when enrolled in a loyalty program, buy only one brand.
What are customer expectations?
Most often, customers expect financial or aspirational value from loyalty programs. The former include discounts, rebates, percentage offs, or gratuities in kind. The latter include rewards in the form of trips to exotic or unusual places and gifts in the form of vouchers for unique experiences. The criteria for loyalty programs should be possible to meet.
The ideal loyalty program will combine financial benefits with a unique experience or emotional benefit. This combination allows you to build effective communication and stronger customer engagement with your company’s brand.
