Businesses must implement loyalty programs to accelerate digital engagement, thereby strengthening trust among their customers.
In a report published by Annex Cloud, 80% of a business’s profits comes from 20% of its existing customers. The same report also states that 20% of customers contribute over 65% of the company’s business. Clearly, to thrive in today’s competitive marketplace, businesses must have their customers’ loyalty.
In tough times like now, businesses need to leverage the power of loyalty programs to increase digital engagement with their customers. If executed well, loyalty programs play a crucial role, especially through word of mouth, especially where customers discuss their chosen brands’ value and benefits. This results in gaining and strengthening trust with customers, across all industries.
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With digital platforms in place, customers can tailor flexible rewards and redeemable points systems. Setting reward points and providing preference from the customers’ desire will entice them to purchase more. Also, this level of personalization increases their faith in their preferred brands and digital engagement.
During the lockdown, digital connect was a key player in customer retention. Many brands displayed new strengths in this time, creating newer connections that they can use to get in touch with their customers across all touchpoints.
As the digital eco-space grows, omnichannel will prosper. Campaigns and messaging that are unilateral across all domains will let consumers know that their preferences are firmly enshrined in their favorite brand offers. And with loyalty programs, brands can virtually up to their game for customer interaction.
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Some benefits of this Loyalty program to drive digital engagement:
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Valuable Data:
The modern customers prefer a customized experience. By encouraging the customers to provide information about their profiles as a part of loyalty programs, businesses can know about the needs and desires across the diverse demographics.
It allows brands to develop personalized marketing campaigns that can cement their relationships with their customers. Not only that, but it also helps brands and enterprises, respectively to keep innovating their product and services and deliver a more personalized experience to the consumers, over a period of time
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Increased Communication:
Effective communication is the key for any business to succeed. Loyalty programs empower brands to effectively communicate with their customers. By thoroughly analyzing the consumers’ behavior from their feedback and responses and the purchase they made, brands can create effective communication strategies.
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Instead of sending a generalized email or notification, brands can customize their message about new offerings and products. Besides, brands can promote sales, special events, and display new products or services, which will gain their attention.
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Save Money:
One of the biggest advantages of having a loyalty program is that brands can save a huge investment amount. As customer retention strategies are often less expensive than acquiring new customers, brands can save a lot on their spending.
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Attracting new customers:
Though loyalty programs are designed specifically for the existing customer base. If brands offer discounts while prospects want to log in, they are added to their mailing list. Furthermore, if customers see loyalty programs where the brands deliver substantial rewards are within their reach, they are more likely to join simply because the rewards are easily accessible.
As the marketing landscape keeps evolving it is essential that brands take innovative initiatives to that not only will keep help they keep their customer base, but also help them to shine among the competitors.