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How brands can encourage customers to shop again and again

What is a brand loyalty program, and how does it work?

Brand loyalty or customer loyalty program is a marketing tactic used broadly by the retailers and other businesses to identify and reward the customers who repeatedly involve and purchase with a brand. Companies use several marketing strategies such as rewards, discounts, offers, coupons, merchandise, early access to new products, as well as other special incentives to keep existing customers and entice new ones.

Loyalty programs are planned to encourage repeat purchases with a brand. A well-made and executed loyalty program can turn a client into a more regular one who might also become a brand promoter.

Loyalty programs aims at:

  • Attracting & retaining customers
  • Rewarding customers (with discounts, coupons, and other special incentives) for repeat business
  • Improving customer experience with the product
  • Increasing the overall sales & profits

Ways businesses can keep their customers coming back:

By improving customer engagement rates, companies can easily make loyal customers. Customer loyalty supports to build an emotional connection among the customer & the brand. Growing customer engagement is the most effective way to form a long-term customer relationship. Following are some tips to know what is customer loyalty program software and how a brand can encourage customer engagement-

  1. Offer more than just a discount: Although clients love to get discounts, they yet want more from the association. Brands can propose experiential rewards to generate an emotional bond that goes beyond transactional rewards. Experiential rewards offer members with access to exclusive experiences to the brand and cannot be replicated. These types of perks encourage the customers to keep coming back to same brand.
  2. Apply gamification method: Many brands apply gamification methods to drive engagement, which is key to better purchases & loyalty. With gamification, clients earn rewards by performing particular actions such as taking a quiz, rotating a prize wheel, or reaching a specific membership level in the rewards program. Few of the most common gamification techniques brands use in their loyalty programs comprise redeemable points, performance graphs, badges, leader boards, etc. All such techniques assist businesses to keep their clients encouraged to remain involved with their brand.
  3. Digital Loyalty Program: In current digitally-driven world, companies must provide a loyalty program that runs automatically in a mobile app. This is a new way to drive better engagement with the brand. Mobile loyalty programs permit customers to gather points with both online and brick-and-mortar stores within an app. As everything is managed within the app, businesses can swiftly review the client data to improve their business. Furthermore, the customer has achance to add points & redeem personalized, location-based rewards rapidly. This drives engagement and improves loyalty.

Loyalty programs are certainly the best and most real ways to keep existing customers, appeal new ones, and make higher profits. Though, it is important to set a brand loyalty program wisely or qr code loyalty program, keeping the target clienteles in mind to leverage its gains to the fullest.

Boost Your Customer Lifetime Value with Loyalty Programs

In this cutting-edge competitive environment, no brand in any industry is safe. Customers are highly volatile and experimental in nature. Options and offers are abundant so also the flow of information. Retaining a customer has become more challenging than ever before. In fact, getting a new customer seems easier than retaining an existing customer. In this condition, customer lifetime value (LTV) is now the primary focus of marketers. It’s now one of the most important metrics for any business that wants to expand their market. Marketers trying and experimenting with every possible tool available to them to enhance the LTV of customers. The Customer Loyalty Program Software is an effective and much cheaper tool providing many advantages to the brands in boosting customer lifetime value.

Develop a Pool of Brand-Loyal Customers with Exclusive Loyalty Programs

Why will your customers spend more? You have to develop a reason. This is where your loyalty programs are relatable. Lifetime value and loyalty are two sides of the same coin. These two factors are inherently linked with one another. With an incentive-based loyalty program, you can induce your customers to spend more on your products. This incentive can be of different forms like special offers, discount coups, direct discounts, money back, and reward points.

Here are a few definite and proven programs that you can adopt anytime to boost your customer lifetime value:

  • Design a point-based loyalty program – This is one of the most used but most effective loyalty programs known to the business world. Points are added with each purchase and after adding some points customers can use the cash value of accumulated points for buying any product.
  • Scratch card system – This is another popular and proven loyalty program. Offer a scratch card for spending a certain minimum amount on your products or services. Keep a surprise gift with each scratch card. This works effectively when every scratch card carries at least a small gift or money back or anything attractive.

  • Tier system – This is one of the best loyalty programs for the long-term engagement of the customers. Customers are assigned tiers according to their monthly, half-yearly, or yearly buying amounts. A higher tier means higher discounts or rewards for a certain period. For example, a tier 1 customer can enjoy a 5% discount on any food item they purchase from your departmental store whereas a tier 2 customer can enjoy a 5% discount on any item they buy from your departmental store.

  • Discounts on purchase from a partner company – This is another way to enhance brand loyalty or lifetime value of customers. Partner with another company or companies whose products or services are someway related to your business. For spending, a certain minimum amount on your products or services offers customers discounted or free products or services of the partner company. For example, if you are a pharmacy, offer a free blood sugar check from a reputed diagnostic center in your city for spending a certain amount from your pharmacy.

  • VIP customer program – Let your customers spend on the subscription for obtaining a lifetime or yearly membership for availing certain exclusive benefits. For example, a member could get the order delivered to their address free while a non-member needs to spend a certain amount for getting the order delivered at the doorstep.

Each and every customer of your business are valuable. Not let them go easily. Pay attention to them because they are the backbone of your business. With simple but result-oriented loyalty programs enhance customer lifetime value. It will make your business relevant and profitable in the long-run.

Loyalty Programs to Maximize Customer Lifetime Value

Revenue is a shared vision that empowers every business in the global marketplace. How many of you are doing business without the aspiration of monetary gains? How many of you aspirng to start their business without any dependencies of closing sale deeds and generating revenue? That’s the only truth of doing business. 

Now, moving forward, do you know what helps you grow your business? Do you know what gives you revenue? Of course, a customer. That’s why the common saying “Customer is the King” holds great significance. So, the tactics to growth and success are simple; firstly acquire new customers and secondly focus on customer retention while increasing their lifetime value (CLV).

What is Customer Lifetime Value (CLV)

Whether you talk about the past, present, or future of business, it purely rests on the customer, his preferences, and his behavior. A business must know its customer in and out while gauging the actual value a customer can bring to picture. This is all about customer lifetime value. In simple words, it is a business metric that displays the net business profit you gain by one customer over time. 

For example, if a customer makes an expenditure of $2,000 on your company, the net customer value for that specific annum is $5,000. However, if you can retain the customer for 10 years and every year, the customer makes a similar expenditure, then the Customer Lifetime Value (CLV) equals $20,000. This defines the contribution of a customer to the business revenue. One by one if you keep adding customers and retaining them, each customer will keep adding to your business growth and success. 

You can measure the CLV by:

  • Identifying where the customer is creating the value
  • Mapping the customer journey with the business growth records
  • Measuring revenue generated by a customer at every touchpoint

These metrics can help you create an overall record of the expenses a customer made on your company. From the actual value, reduce the cost of acquiring and serving a customer. The outcome is the final measure of the CLV. 

How to Increase Customer Lifetime Value

Research and technologies have come up with many proven ways to increase CLV. Some of the most common measures include improved customer engagement, understanding customer pain points, providing relevant solutions, customized solutions, upgrades, and loyalty programs. However, among the long list of such initiatives made by companies across the globe, loyalty programs are working at its highest scale of productivity and positivity. 

What are Loyalty Programs

Getting to understand what are loyalty programs, the first and foremost definition is the thoughtful measure to improve customer engagement and loyalty. The program includes offers and schemes like additional discounts on products, advanced access to a new range of products, free merchandise, birthday discount coupons, and complimentary services with specific products. These incentives often encourage customer retention while driving the customer to return for purchases on and often. 

It is a simple marketing model that allows customers to earn and collect points on all their purchases. Further, the customers use the accumulated points to redeem for reward or discount. This, in turn, drives repeat customer purchase. 

How Loyalty Programs Help Maximize Customer Lifetime Value

With more and more points, customers ought to return for new purchases and more points while adding more value and profit to a business. Popular research done by Bain & Company also states that when a brand works on increasing customer retention even by 5%, it holds the capability to boost business profit by more than 95%. This research makes it evident that even with a 5% effort if you can get maximum ROI, then why not put in extra efforts and measures to reach the highest ROI.