It’s Time to Reap Some Rewards: How Customer Loyalty Platforms Increase Your Customer Engagement!
Sephora, Starbucks, Designer Shoe Warehouse (DSW), Amazon Prime, and Costco. What do all of these businesses have in common? Each has a highly successful customer loyalty program! These are just a few of the countless examples of customer loyalty-focused companies that are thriving today. All of these businesses recognized that customer retention is hugely important to success, and they decided to do something about it. It’s no surprise that customer retention is at the forefront of companies’ minds; over 82% of businesses agree that retention is cheaper than acquisition. Why spend more to get new customers when you have a captive audience that just needs a reason to come back? Here’s where customer loyalty platforms come in. This ever-growing software industry is changing how brands build loyalty and boost engagement. Let’s take a look at what these platforms can do for you!
What is a Customer Loyalty Program?
The premise behind customer loyalty platforms is to offer rewards, incentives, discounts, and exclusive offers to members who keep coming back for more. Not only do loyalty programs improve customer retention rates and sales, but they also improve overall engagement. You can choose to reward engagement, which will, therefore, encourage further engagement, but simply having a customer loyalty program will get your consumers more involved.
Typical customer loyalty programs including receiving a free item or a discount for every x-amount of dollars spent. For example, Dunkin Donuts offers DD Perks members five points for every dollar spent. When they accumulate 200 points, they receive a free beverage of any size. Why? People know that every purchase they make is going to get them a step closer to the reward, so they keep going back to Dunkin rather than hopping around to different coffee shops.
You can also have loyalty programs that offer different kinds of rewards, such as exclusive content. If you want people to read your blogs, you can create a program that gives loyal readers free, exclusive content every x-amount of blogs read. You can also offer rewards as simple as a special status or a virtual badge. Facebook’s “Top Fan” badge is awarded to those who frequently interact with a page’s content. These badges make the user more visible on the page and shows their commitment to the brand. It’s a simple reward but one that improves engagement nonetheless.
What is a Customer Loyalty Platform?
Customer loyalty software platforms are web-based tools used to track customers and strengthen the perceived value of your brand. They’re the hub of all of your loyalty program needs. The platforms are used to set up the programs, put them in place, organize them, and track their progress. Most platforms allow you to create games, connect online payment methods, create personalized messages, and more! Customer loyalty software is the easiest way to set up and maintain a program because everything is housed in one place. You can run and keep track of campaigns across various channels easily and make your loyalty program available to just about anyone!
Here are a few things customer loyalty platforms support:
- Promotion Rules
- Status Levels
- Multiple Incentive Currencies
- Coupon/Discount Management = Consumer Tracking
- Multiple Channels
- CRM features/ability to link to CRMs
- Customized Promotions
What Can Customer Loyalty Platforms Do For Engagement?
Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program. These recommendations can come in the form of word of mouth, comments on social media posts, reviews online, and more! Already, you have more engagement than you did previously! Add in the fact that customers will want to engage with your online content and your business in general and engagement is through the roof. If you use your customer loyalty platform to create games, you can bet that a large number of members will play! Since loyalty programs are going digital, there’s a lot of room for interactive content. Videos, games, texts, virtual “punch cards”, rankings, and statuses all encourage engagement. According to Wirecard, after receiving rewards, 70% visit the brand’s retail location, 40% follow the brand on social media, 35% view brand content, 30% subscribe to newsletters, and 15% will attend events. Talk about engagement!
Why You Need Engagement?
To get right to the point, you need engagement to stay relevant. If people do not interact with your brand, they’ll likely forget about it. Engagement levels show that you are producing content that your audience is interested in. More importantly, it shows other consumers that your brand is worth spending time on. Consumers trust other consumers, so reviews, comments, shares, reactions, and other forms of engagement are all very important. Engagement = more visibility and brand awareness. If more people know about you, more will be interested in purchasing from you, and more will want to join your loyalty program for rewards! With a good program in place, the cycle will continue, and you’ll see sales, retention, and engagement all skyrocket.
We hope you’ve found the information in this article helpful. Customer loyalty platforms are excellent for bringing a tried-and-true marketing trick into the digital age. Control everything from one spot and watch your numbers increase. Retention is crucial, so take a look at your platform options and get started!