Loyalty programs have evolved to a new level of sophistication in 2018 and are expected to get even better in the coming years. Brands now use loyalty programs to gain relevant insight about their consumers, and this helps the brand create personalized brand experiences for them. With the right loyalty program and tools, brands can connect with their consumers at different touch points.
Consumer loyalty programs have moved beyond just offering rewards and have advanced over time to enable brands to engage their consumers on various communication channels actively. When done right, loyalty programs can help keep customers coming back for repeat purchases and can potentially turn them to advocates as well as attract new customers to your brand. If done wrong, it can leave a negative impression in the minds of your customers, scaring them away from your brand.
A point-based consumer loyalty program encourages consumers to purchase your products repeatedly. This structure is designed with the objective to increase customer retention and possibly lead to customer loyalty over time. With sophisticated loyalty solutions such as Sproxil’s, products purchased by the consumers come with unique identifiers or codes which consumers can text to the Sproxil’s short code to earn points, these points are then rounded up over a particular period. When a consumer acquires the desired number of points specified by the brand, they then get rewarded for achieving this.
Alternatively, beyond the accumulation of points, brands can specify the number of times a consumer needs to make a purchase for them to earn a reward. Such could be every 5th purchase or 10th or any number the brand decides to adopt. With Sproxil’s technology, this reward process is automated to enable brands run easy and convenient consumer loyalty program.
A point-based loyalty program is not a one size fit for all. Industries are different so also are brands and businesses different. Having an in-depth knowledge of your consumers will help in ensuring that you adopt the right consumer loyalty program that will yield the desired outcome. Sproxil consulting services will guide you as to what consumer loyalty will be suitable for your business and consumers.
Sproxil has helped multiple brands across Africa, Asia, and North America run successful loyalty programs that have made significant impact on their sales and revenue. Let’s help you build a yours today. Click here to contact us.
Are you currently considering launching a loyalty program? Are you unsure of the impact this will have on your business? We have provided below the top 5 benefits your business can derive from this program.
Customer loyalty is paramount to the success of any business; as loyal customers spend more and can quickly become brand advocates – facilitating the acquisition of new customers through word of mouth; which can generate up to over twice the sales of paid advertising.
Gaining loyal customers is no easy task for any business, most especially businesses in highly competitive markets; consumers have numerous product options to choose from, mainly due to the fact that there are no strong barriers to entry or exit in this market. Businesses in these markets need to consider what extra benefits the consumers can derive from their products, they need to devise strategies to make their products more attractive to the consumers, and one of such approach is a customer loyalty program.
Loyalty programs are structured marketing strategies to encourage more purchases from customers. They can be targeted at attracting new customers or encouraging more frequent purchases from existing customers. Loyalty programs are said to be a more cost-effective way to acquire new customers as well as keep existing customers if implemented successfully.
The benefits of loyalty programs far outweigh the cost for those not sure about the value of implementing one. It is far more effective than branded content and advertising if done right. One of our clients – Corporate Focus, recorded over 600% increase in sales through our customer loyalty program; which was achieved within three months. This program rewarded customers for their purchases, encouraging them to buy more. Sproxil’s loyalty program attracted not just the client’s existing customers but also new customers were acquired.
About Sproxil’s Loyalty Program
Sproxil Champion™ is a flexible point-of-sale consumer rewards solution with built-in fraud protection that empowers brands to offer consumers convenient opportunities to earn and redeem gratifying rewards from the brands they desire. Sproxil provides globally-unique codes for each product unit made by the manufacturer. Each code is covered with a tamper-evident layer for additional security. A consumer at the point of sale scratches or peels off the tamper-evident layer to reveal the unique code. To verify if a product is genuine and become eligible for a reward, the consumer sends the unique code to Sproxil using one of several options all accessible by mobile phone. A response is immediately sent to the consumer logged in Sproxil’s online portal, allowing brands to monitor marketing spends and flag suspicious activity patterns and determine return on investment in real time. Sproxil Champion is also available as a bespoke solution for distributors to help brands ensure distributors receive genuine products and earn rewards for their trust.
If you are a serious business in 2016, you have already or are currently plotting and planning creative customer retention strategies to implement this new year. Sitting with top and middle management, the sales and marketing teams, account managers and other key stakeholders are important parties in this planning process. While we at Sproxil have already made plans for our 2016 strategy, it is not too late to start yours. Gather your team together and start having conversations around the vision, strategies and tactics you will need to execute this project. What are your business goals? How do you plan to implement them? What media will you use?
Before you start planning for the new year, take a step back with some of these tactics:
Conduct an honest and comprehensive review of your customers’ satisfaction by deploying surveyings and having one-on-one interviews. If there are review sites for your product(s), look at those too
Begin strategizing ways that you can improve your customers’ satisfaction. What do they want more of? Less of?
Evaluate previous strategies (if any) and determine what worked and what did not
Look to industry leaders, competitors, and online resources to learn about new tactics that could work for your product
Learn why previous customers have migrated to your competitor
Customer Retention Strategies to Employ
1 Set your customer’s expectations
Before you get into the details of planning, set realistic expectations of what you expect from customers and what you would be willing to offer them. Create buckets for each of your customer demographics. Take your budget into account, take the pain points into consideration and strategies that worked previously. Be ready to under promise and over deliver to them. This way, you’re not scrambling to put together products and features that your promised but had not yet created. Honesty to yourself is key.
Develop creative strategies to bring back customers you may have lost in the past. Based on your initial review of why you lost your customers in the first place, tap into the consumer insights gathered and reform your strategy. Offer a competitive price, run aSproxil Champion campaign, follow up with them and address concerns they may have. Perhaps a discount will lure them back in or proof that your product has improved since they left. While there may be a chance to get them back, consider the value of the customer. Is it worth the time and effort for your to bring them back? If it is, starting courting again! If not, cut your losses and concentrate on the valuable customers you want back.
3 Choose the right platform
Depending on the country you live in, you have probably already identified the most effective platforms to reach your customers. In some countries, radio works best, in others, the store front is the most appropriate platform, and yet for others, online is the best route. Whatever the case may be, identify the appropriate platform(s) and develop a creative campaign to target them there. Perhaps a multi-platform promotion via web and mobile work best.
4 Treasure the complainers
Customers that are not satisfied with a product or service and have disconnected from the brand are more likely to walk away. However, customers who come back to complain may offer you important insights and an opportunity to win them back. Consider their Customer Lifetime Value (CLV) when determining how much effort and discount you would be willing to give in order to keep the customer. When the customer’s problem has been solved, take into serious account all of their complaints: both what was said an left unsaid. Some things will be glaringly obvious in their complaints but the unsaid things can be real gold. Insights from unhappy customers can help improve current processes and help you retain future customers. Remember: choose your battles carefully; not all customers can offer productive feedback. You will need to know when it is no longer profitable for you to retain a customer.
All your customer retention strategies are useless if you do not measure the before and after. What numbers are important to you? Set metrics and Key Performance Indicators (KPIs) that help you determine how well you are doing. Once you set what KPIs are important to you, calculate your baseline. What kind of improvement needs to be made to help you meet your KPI? What kind of promotions can be utilized? What do you do for at-risk customers who are considering switching to a competitor? With a service like the Sproxil Champion Promo Campaign, not only can you increase engagement to better meet your KPIs, you can use the data from the campaign to make smarter, more targeted campaigns in the future.
Now that we have armed you with some helpful starting points:
Have you sat with your team to discuss customer retention strategies?
What worked for you previously? What didn’t?
Are you ready to take the 2016 bull by the horns??
If you would like to discuss the implementation of the Sproxil Champion into your program, please send an email to team@sproxil.com citing this blog post and we will work with you to create unique campaigns that fit your customer base and market.
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