The most effective customer loyalty programmes are adaptable and agile. Are you getting the best results from your collected consumer information?
Given the competitive nature of modern business, where established brands battle with innovative start-ups for a greater slice of an increasingly fragmented market, retaining customer loyalty means offering more than just compelling pricing and top-notch service. Incentivising repeat business can be the difference between successfully carving out your own niche and fading into the background.
A study of customer loyalty programmes carried out at the University of California, Berkeley found that the most effective schemes provided benefits to organisations beyond increasing sales and lower price sensitivity. Further insight can be gained into loyalty, through channels including:
- Access to consumer information and consumer trends.
- Cross-selling and up-selling opportunities.
- Increased ability to target unique segments of the market.
- Increased success in implementing product recalls.
The trick is developing a customer loyalty programme that allows access to these potentially game-changing features.
Making refinements through analysis
Nowadays it may seem that every corner coffee shop in your town has their own loyalty system, usually based on a stamp card or something similar. There's little variation, and, as such, little to differentiate each offering from the next. More sophisticated methods of rewarding the return of your clients require a more comprehensive approach.
Simply handing out a card to each customer who passes through your doors may not be enough to achieve the success you want for your business - to get maximum ROI you need to unlock the potential of consumer information collected at the sign-up stage.
In an article written for Forbes, marketing researchers from McKinsey & Company note that by strategically using customer data, the most effective loyalty programmes are able to provide targeted offers to the highest-value consumers. Offering greater rewards to those who contribute the most to your revenue - through size of spending or number of transactions, for example - is a terrific way to get the best return from your most loyal and important clientele.
Delivering better customer loyalty programmes with Power2Motivate
Calculating where your loyalty scheme is performing best, not to mention where improvements can be made, might seem like a time-consuming endeavour. With a programme from Power2Motivate, however, all of that data is right at your fingertips.
With a three-click reporting system that delivers all the key information, and a metrics and leaderboards manager designed to foster healthy competition between participants, seeing where the best performance lies is simple.
Reach out to Power2Motivate today, and learn how your customer information can lead to increased loyalty, and better bottom line results.