If you are like most marketers or entrepreneurs, you might have worked every single day to optimize your business. All this to create a uniqueness that sets you ahead of competition. More specifically, you need to build a reason why should customer choose you over your competitor.
How to Win Customer Loyalty
Before we dive into steps and options you can take, let’s see some related statistics:
- According to a marketing agency called Inbrief, 90% of US companies use customer retention strategy. As a result, there has been a significant increase of almost 27% in loyalty program addressed to customers over the past few years
- Also, 61% of the worldwide consumers have changed the way they by product or services by participating on one or multiple loyalty program.
- Did you know that 61% of retailers said customer retention as their biggest obstacle?
- Other shocking fact is that, a 5% increase in customer loyalty can increase the average profit per customer by 25% to 100%.
- Around 58% of respondents buy from the stores and brands whose held loyalty programs at least once a month.
- 69% of consumers say the choice of retailer is influenced by where they can earn customer loyalty/rewards program points.
- It is also known that 57.4% of consumers join loyalty programs to save money, and the other 37.5% to receive rewards. Source
From the figures above, we can conclude that there is an increasing popularity of loyalty programs. In fact, people love discounts. On the other hand, the customer retention rate decreases if there is no additional incentive or marketing stimulation. Therefore, loyalty programs are vital to your business.
Then the question immediately arises: How to achieve high-quality long-term relationships? What marketing tools to apply specifically for your business? And finally, how to win the “war” to get the customer?
For answering the first question, we will delve a little into the theory on the example of retailers. There are three ways to attract customers:
#1 Loyalty Program Coalition
The first strategy is to build loyalty program coalition among other stores or retailers. There will be only one loyalty program. Here is how it works: The customer has one “bonus card”, which he can use in all of the stores included in the coalition. Is it convenient? Yes, it is. Will it work? Well, it does!
#2 Add-on Services
The second strategy is to create their services that increase customer loyalty. An additional service that creates value and something your customer can afford it. By doing this, you will receive the following benefits:
- You own the ecosystem with its own accounting and data analysis;
- any possible wishes from the customer can be implemented as the basis of decision making
- You will get powerful analytics of what your customer wants over the communication tools.
#3 Website and Mobile App Offers
The third is an aggregator that collects a large number of local participants’ companies. Among many choices, a website or a mobile aggregator application gives a customer the best personal offer. The main advantage of this approach is that, once the customer is being registered in one of these services, the customer receives a certain number of small rewards in the form of discount or cashback.
All these solutions can increase your customer loyalty and encourage your customer to make more purchase for the products or services. However, each system individually has its drawbacks. Coalitions, for example, have more attraction effect than retention. On the other hand, add-on service strategies only work with the existing customer base. Finally, the mobile app aggregator is lack of customer analytics and there are no personal custom offers for the customer
By analyzing this situation, we came to the conclusion to create a system that can combine, if not all, most of the marketing tools entrepreneurs need. The ideal system that integrates B2B and B2C sector. Sounds like a good idea, right?
If you have a complete set of the tools for segmentation, analytics, and communication, you can create a mass offer or personal custom offers. In fact, our solution will help the marketer of any level understand how to retain the customer and adjust the user experience. All analytics both for an individual and a group of customers is presented in the form of dashboards as a whole.
For convenience, we also have implemented a chat bot that will help a call center. In fact, it reduces the cost of maintaining a staff of operators as well as the waiting time of a customer to get a respond.
Artificial Intelligence in Action
Oh, how we used to love using this phrase. Let’s try something else by now and call it “machine learning algorithms”. In short, they will help you choose the most suitable customers for the promotion or the most suitable promotion for specific customers. In some cases, the findings of the algorithm may surprise even an experienced marketer.
Finally, all these technology and strategy should be in the form of a mobile application, in which each company will be able to communicate with their customers and present their offers. It can be general and personal offers, presented as vividly and clearly as possible. Then why “mobile phone”, I think, it doesn’t need explaining.
After the introduction of a system as such, our partners conducted the first research on the effectiveness of our platform. They use it for the 4 months period. With an investment of $1,200, the number of repeat purchases increased by 7%, the average transaction value increased by $2. Also, it adds up the additional revenue increased by $30,000.
How to win the war for a customer? How to build a business where there will be an ideal loyalty program? And is it even possible to do this? All of these are possible! Unfortunately, to achieve all of them, it is important for marketers to abandon the old tactics that has nothing to do with the interests of individual customer.
In the end, it all comes down to the personalization of the offer. A business should know what the customer wants, what language he speaks, and only then form such a proposal that even the most stubborn millennial will respond to it.
Those marketing digitalization tools that are presented in the application to interact perfectly with systems that collect all the information at one point. It is clear that the problems in retail, which happens today, cannot be solved by one application.
That is why we created a tool that perfectly analyzes the entire marketing flow of your business and greatly simplifies all the mechanisms of interaction between B2B and B2C. Loyalty marketers who saw mobile phones as another communication channel, squandered the immense opportunity to reach, attract, and improve experiences for their loyal customers.
Enabling a mobile loyalty strategy literally puts your brand and your loyalty program in the hands of your best consumers and creates a potential for more interactions.