Enterprise loyalty program
Why is Loyalty Program Important for Enterprise
The loyalty program is not just a discount system but an integrated strategy for marketing, which includes a system of accumulating bonuses for purchases, collaboration with partners, and the promotion of the company’s values. The loyalty program is aimed at increasing sales and average prices by regular customers. The client comes back to spend received bonuses for purchases and wash, rinse, repeat. The mentioned solution helps to personalize buyers in addition to sales and get information about their frequent purchases and interests. This data also has a great influence on a complete marketing strategy creation.
The Advantages of implementation a Loyalty System for Enterprise
● Attracts new clients
Favorable terms of the loyalty program trigger the watercooler effect and people tell their friends about the enterprise. Recommendations ensure the flow of new interested audiences.
● Retains customers, makes them more loyal
User participation in the loyalty program implies regular receipt of bonuses, such as increased cashback, personal offers, welcome bonuses, points, and discounts.
● Deanonymizes the buyer
The user gives access to personal information by agreeing to become a part of the loyalty program. The enterprise becomes aware of his/her preferences, purchase history, average bill size, and contact information. All this can be used to send mailings and special offers from the store.
● Increases the average bill
The client receives a discount for a purchase at a certain sum. This encourages the buyer to choose additional things and spend money on them. Moreover, members of the loyalty program get points for the purchase, which can be lashed out on the next orders.
Types of an Enterprise Loyalty
M-Loyalty Company can boast distinct types of programs and which one is suitable for a company depends on the goals and objectives of the enterprise. Of course, all programs have a collective goal – to maintain customers, arouse interest in the company, and stimulate sales but for various spheres of action, this task will sound differently and specifically.
Loyalty programs simply represent a solution for accumulating bonuses. It can divide consumers into levels or display the values of the enterprise. Discount programs mean that the buyer is provided with a required card that gives a discount on certain products, the composition of which may vary. The client not only becomes a cardholder but also gets an SMS or email newsletter with personal offers that motivate them to repurchase. Such a solution has a clear system and is easy for practical application and use.
Bonus programs purport that the client receives points for the splurge, depending on the spent amount of money. Bonuses are accumulated, the consumer can write them off, and pay with their part or the entire amount of the next purchase. Surplus dividends often expire after a certain period, for example, a month without purchases. This gives people the motivation to shop more often.
You can pay for the purchase in full with points in some stores and restaurants, while in others, only a certain part of the purchase. This parameter is determined by the seller. Such a system allows motivating buyers to return. Points are a kind of cashback that a client can spend only on purchases in the same place. It’s important to pay attention to some positive moments of such a solution: customers are motivated to spend large sums. There are special apps that make it easy for the enterprise to track client purchases and make customer-focused offers using push notifications or mailings.
Multilevel loyalty programs have their scheme. The entry-level shoppers are provided with a minimum discount amount, such as 5%. The more the client orders and redeems, the higher his/her level and, accordingly, the personal discount. Airlines, insurance, medical centers, hotels, and other industries often use the above-mentioned system. There are fair point advantages of this system.
● The discount level directly depends on acquisitions, which inspires the client to expend money more and more often.
● The average check of the buyer rises.
● The transparent principle of discounts accumulating and the level increasing makes customers more favorably disposed to the enterprise.
● Buyers who make good profits capture more rewards than those who buy infrequently, which makes the program fair.
Cashback is a loyalty program based on “cash back”. The client is reimbursed part of the money from the purchase. These can be points that the company will return to a discount card or money to a bank card. The seller sets the cashback percentage. Such programs are most often used by banks. The client receives a visible benefit from purchases and the company can connect partners to the program.
Customizing of Loyalty Schemes
A profitable loyalty program depends on the business peculiarities so M-Loyalty specialists analyze the mainstream market and fully adapt to the characteristics and goals of the company. It’s required to study the company’s customers before developing a loyalty program in as much detail as possible. It’s important to draw up a picture of the target audience by answering some questions.
● Who buys the company’s goods or services?
● What needs do buyers have?
● What customer problems does the product or service solve?
● What’s the easiest way to keep in touch with a client?
The answers to these questions will show which loyalty program is best for clients and through which channels to promote it. We use reports such as the assessment of engagement in the loyalty program, the effect of the points balance on the engagement in purchases, and the average check to measure the effectiveness of the program over time.
When to add a loyalty program?
Let’s consider the situations when it is needed:
1. When a product is in a mature market.
2. Competitors have a loyalty program.
3. The product has passed the stage of rapid growth.
4 Users are satisfied with the product.
All right, let’s assume your company is growing in a competitive market. At first sight, a loyalty program seems unnecessary in this case but if all your competitors have the program, then this is one of the criteria for choosing by an audience.
Launching Enterprise Loyalty Program
Customers need to know about it to use the app. Take care of this and think about ways to promote it in advance. Email and SMS mailing, pop-up windows or banners on the website, social media, and messengers of the company are decent ways to inform buyers. When the business has physical stores, then it is worth preparing employees. Firstly, describe to them all the peculiarities of the loyalty program, the accumulation, and the payment system. Secondly, induce them to share the innovation with business friends.
Loyalty program launching consists of two inalienable parts: costly (we offer customers discounts and bonuses for receiving information about them) and profitable (we analyze data, conduct targeted marketing, and motivate the client for further purchases through the