Customer Loyalty Program Highlights and Tips to Trim Budget
Loyalty marketing investment needs to ensure lifetime acquisition of customers. Launching a loyalty program is simple with the right tools to attain different business objectives like gaining customer insight, brand attraction, and increasing sales.
However, in this pandemic lockdown situation, people are making purchases online, so it is an era of fierce competition to maintain a long-term relationship with existing customers. Loyalty programs are valuable in this scenario.
Highlights of customer loyalty program initiatives
- Buyers appreciate rewards for their repeated business thus brands can decrease their overall marketing spend by planning a precise customer loyalty program.
- Concentrate on enhancing repeat purchase rate instead of spending on other marketing campaigns. Established business convincing more than 22% of customers to purchase every month does great and a loyalty program is the best way to go!
- Loyalty programs are a win-win for customers and brands. Customers save dollars or other perks, while brands attract new and retain existing customers.
- An existing customer already trusts your brand, so they will hardly approach your support team or customer service. New customers need support in the initial months. Thus, customer retention loyalty program helps to reduce the support costs.
- Consistent branding is essential to maintain loyalty. It ensures people don’t forget your brand in the crowd. Companies consistently use branding tools like content marketing, social media networking, email marketing, Google ads, guest blogging, etc. Instead offering a loyalty program to consumers ensures the brand remains on top in this rough competitive scenario.
As a retailer, you can choose to partner with the Lavish Loyalty platform. It is a decentralized networking loyalty portal connecting small businesses around Australia. The lavish platform builds an interstate community, where every partner is rewarded for buying within their community.
Due to COVID-19, retailers are struggling with economic havoc, so they are encountering major cuts on their administration expenses. How can they achieve this without adversely affecting customer’s loyalty program performance?
Tips to trim loyalty program investment budget
Consider how to make change customer-centric changes. It means a total program revamp or minor and specific changes. For this check your KPIs or key performance indicators. It will help to forecast based on past performance. Some of the common KPIs to consider are –
- Program enrollment
- Lifetime value
- Active membership
- Redemption rates
- Communication engagement rates
- Promotional incremental lifts
- Social/mobile/web engagement rates
These assessments will help in defining where to make significant cuts. After handling the overall performance landscape, it is time to diagnose every budget segment in your program and decide on a suitable action plan to fulfill your budget cuts and ROI needs.
Logically probe in every budget segment and subsections to identify which are untouchable but be careful because what you feel is unfeasible may be a potent candidate.
For example, technology is an area that you feel is untouchable. You desire less to change providers and handle new integration efforts. However, with advanced tools updating the loyalty technology platform will be less difficult than expected.
If you are using print communication then move to more digital. This can generate savings without compromising loyalty program performance.
Go through the cost of every program to determine areas suitable for trimming cost. You will fulfill your budgeting goal at some point without much disruption or sacrifice to your business’s loyalty program.