Loyalty Rewards Today
Indeed, it can cost up to 25 times to acquire a new customer rather than keep an existing one. Regardless, most marketing strategy focuses on acquiring new customers and growing its reach. That said, one of the most important building blocks of a business is cultivating the brand loyalty. Of course, we have the four core types of loyalty programs: Points-Based Loyalty, Tiered Loyalty, Paid Loyalty and Value Loyalty. Certainly, we can determine hybrids of these and the optimization based a company/ brand’s needs.
As mentioned in various Verticals, CSC understands and values the strategic application of Loyalty Rewards. Yes, we note that programs help drive customer engagement. Furthermore, it is a direct line of communication for strategic offering. Of course, with innovation and social media there is an amazing opportunity to further deepen the relationship and offerings. Therefore, we support businesses that are making more development decisions with loyalty members in mind. And, we create the right strategy for the right moment. Ultimately, following expert practices in strategic loyalty rewards can maximize a business potential. At this point, a company moves into the development of a program that answers the four key points.
Create Desire
First, it is important to understand the reason behind the connection to a brand. Mainly, a clear value and connection must be made with the customer. After all, a retention strategy that encourages customers to continue buying from a brand rather than its competitor is paramount. Of course, customers should feel valued. Furthermore, when they participate in the program, they must be acknowledged. Then, they must experience more of the brand. That’s why every piece of the rewards program must work. From earning actions to spending rules, it should be an engaging experience. You’ll know you’ve created an effective loyalty program when customers seek out the action rather than the reward.
Spark Conversation
Certainly, being part of just another loyalty program is not a breaking newsflash. However, a rewards program must offer an extraordinary experience. Correspondingly, Points-Base Loyalty that offers customization advantages as well as product benefits like Starbucks Rewards is a winner. Indeed, to lead in personalization makes sense to connect. And it puts the brand at top of the game. Yes, thinking outside-the-box increases the chance for the conversation. In fact, customers talk about the program organically. Word-of-mouth is valuable to a business. This promises the program a tremendous growth opportunity. Furthermore, it heightens engagement and reviews. Overall, it keeps the brand awareness solid at all levels of social interaction.
Cohesive Branding
The rewards program should be an extension of a brand. Obviously, not just be tacked onto a website. Careful thought, development and execution must be taken. Specially, on the brand identity. For example, a luxury retailer should have a VIP themed Tier Loyalty program. While a company that has a strong philosophy focus may structure it as a Value Loyalty. Examples are fashion houses that drive Sustainability and Community in its brand. Indeed, align the loyalty program’s values with the brand’s objectives as a hybrid. Consequently, the alignment increases effectiveness, as long as it makes sense.
Loyalty Rewards and Innovation
Whether a cohesive innovation-focused Loyalty ecosystem is in place, like Apple. Or a popular Tiered Loyalty program like Sephora’s Beauty Insider, the integration of technology and loyalty is important. CSC uses latest development and ideas to build programs. We specialize in gauging value, resources and trends. Indeed, we understand scholarly studies. And we implement for successful results.
In conclusion, we know increasing customer retention rates by 5% increases profits by 25% to 95%. Acquiring a new customer is more expensive than retaining an existing one. It makes sense to build and manage a strategic program. The bottom line is, you don’t have to spend time and resources going out to finding a new client. For sure, it is about keeping the existing happy.