Who do you believe is more crucial to a business? Existing customers or the new ones?
The truth is that businesses that focus solely on acquiring new clients will eventually lose their existing customer base. Retaining existing customers is crucial, especially for small businesses to consider while competing against giant corporate sharks.
Reports say that returning customers account for 25-40 % of total revenues in the most stable businesses. When compared to one-time buyers, repeated customers generate 3-7 times the revenue per visit to a business.
Loyalty programs are the magic bullets for boosting customer loyalty and ensuring they stay engaged with the business indefinitely. This blog lets us find out the best customer loyalty programs to support your business. Let us first know more about customer loyalty, loyalty programs, and different loyalty program services.
What is Customer Loyalty, and Why is it Important?
Customer loyalty refers to a customer’s desire to choose a specific brand or prioritize a business over other options. It’s simply a customer’s attraction to a business based on its brand value or brand message.
The most incredible way to retain consumers and increase revenue is to build and strengthen customer loyalty. Customer loyalty serves as an interface between a business and its potential customers. Loyal customers make repeat purchases and act as brand advocates, enticing new customers to the business.
What are the Five Stages of Customer Loyalty?
A customer’s loyalty to a company or a brand does not develop overnight. You will be able to relate to my statement. Did you develop an affinity for your favorite brand after making a single purchase? After multiple purchases and getting to know the brand better, it would have been your favorite.
Customer loyalty is a five-stage process that follows the steps listed below.
This is the first stage of a customer’s awareness of a business or a brand. During this stage, the initial connection between the business and the customer occurs, where the customer may choose to research the product or the service.
The customer learns more about the brand and makes a purchasing choice during the acquisition stage.
As the name indicates, the customer gets converted through the first purchase in this stage.
Retention refers to a customer’s recurring purchases resulting from a positive brand experience.
Customer loyalty is based on repeat purchases, contentment, and an emotional bond with the brand.
What are Loyalty Programs?
Loyalty programs are specialized marketing schemes that offer rewards, discounts, and other special incentives to attract and retain customers. As the name indicates, through personalized rewards and enhanced services, businesses inspire the customers to travel with them and make purchases again and again.
Loyalty schemes ideas may differ between businesses depending upon their products or services and customer behavior. Businesses develop innovative customer loyalty programs like members-only discounts and free or expedited shipping services, which encourage the customers to stay loyal to the brand.
Top brands and businesses have already realized the unbeatable potential of innovative customer loyalty program services that fulfil customers’ expectations and override the competitors. Customers’ hearts have been grabbed by omni-channel loyalty schemes, in which they can gain the points at a multi-brand store and redeem it in their favorite coffee shop.
How Loyalty Program Works?
Loyalty customer programs work through special rewards or incentives given to the customer for their relationship with the business. How do loyalty programs benefit customers? Customers receive credits, points, or special services for each purchase action they take, which can then be redeemed for a reward to inspire them to return.
Loyal customer benefits motivate the customers to stay connected with the business and act as brand ambassadors, spreading the brand value among other customers. Apart from customer motivation, specific loyalty schemes in marketing help the businesses gather customer data, preferences of products, and customer behavior. While some Indian businesses operate their own reward programs, the majority enlist the help of expert loyalty management services.
Why Customer Loyalty Program is Important?
Customer loyalty program examples like Amazon Prime and Starbucks speak about how important customer loyalty is in developing a positive relationship with the customers. Most organizations and businesses have realized the significance of employee recognition portals, employee rewards platforms, online employee recognition, omnichannel e-commerce solutions, etc., to enhance employee and customer loyalty.
Crafting the best customer loyalty programs can help a business in the following aspects.
- To attract the new customers.
- To retain the existing customers.
- To beat the competitors and dominate the marketplace.
- To boost the sales and business.
- To increase the Return on Investment.
- To acquire customer data.
- To gather feedback on the products and services.
- To spread brand awareness and brand value.
It takes time to turn a first-time customer into a recurring customer and customer loyalty programs should be explored for this major reason.
Examples of Loyalty Programs in India
Businesses such as Big Bazaar, Tata, Starbucks and Jet Airways have set various loyalty program examples in India to grow their customer base and retain potential customers.
Big Bazaar Profit Club
Big Bazaar, the retail chain of Future Group, addresses its clients’ key pain points with exclusive discounts, awards, value-added services, and hybrid loyalty programs. Low product prices and year-round discounts became Big Bazaar’s distinctive selling proposition. An unique loyalty program is Big Bazaar Profit Club, which allow members to pay Rs.10,000 and shop for Rs. 1000 every month for the next 12 months. The business thus offer its loyal customers the option to save Rs. 2000 through their innovative loyalty solution program.
ClubWest by Tata
ClubWest is the Tata group’s rewards program for its department store network. Their program has two levels: Clubwest Classic and Clubwest Gold, depending upon the amount they spend for purchase. Members get reward points for every rupee they spend at any of the stores. Aside from that, all members have access to a wide range of exclusive services like customer help line, member discounts, discount and promotion notification, etc.
My Starbucks Rewards TM
My Starbucks Rewards TM is a loyalty program operated by Tata Starbucks Private Limited. The scheme has three levels named Welcome Level, Green Level and the Gold Level, that is determined by the number of stars the customers acquire in their account over the course of a year. The customers gather stars when they make a purchase. Based on the level, Starbucks provide the loyal customers with free birthday drinks, free customization on handcrafted beverages, personalized offers and coupons, etc.
Jet Privilege Miles
Another example of customer loyalty programs is the Jet Privilege Miles (JPMiles) by Jet Airways. They designed creative loyalty services in India by rewarding the passengers who fly with them. Passengers earn JPMiles, which are saved in their Jet Privilege account, giving them access to exclusive bargains, lounge access, and more. Jet Airways’ brand loyalty program solution is still valid and can be used for flights, hotel stays, fuel, and retail, despite the airline’s closure.
How to Create a Customer Loyalty Program?
The success of the world’s best loyalty programs teaches us that a customer loyalty program should address the customers’ expectations and make them feel valued. The following are the steps to be followed to design the best customer loyalty programs for your business.
- Study the customer behavior.
- Identify the customer expectations.
- Decide the customer community to target.
- Set the goal for your loyalty scheme.
- Set the budget.
- Design the best customer loyalty programs customized as per the business objectives.
Going through the steps involved in formulating a customer loyalty program, try to answer the below-mentioned queries.
What incentive programs should you use?
How can you make your loyalty program more appealing to your target audience?
What should be your loyalty program’s principle?
It would be a laborious mission for any business to find answers and craft an outclassing loyalty program. The best possible solution for you would be hiring loyalty program service providers. AD Vantage Marketing, the best loyalty service provider in India, has been offering hybrid loyalty programs, channel loyalty programs, b2b loyalty programs, etc., for its reputed clients across the nation.
We provide the best customer loyalty programs in India that are tailored to the client’s corporate objectives. Our exclusive loyalty rewards program for restaurants, hotels, and retail chains are set examples of customer loyalty programs in India. Associating with top-notch loyalty program companies in India like ADVAN would help you implement successful loyalty programs effectively.
What are the Different Types of Loyalty Programs of ADVAN?
Don’t you want to reward your loyal consumers with high-end loyalty programs? Join your hands with AD Vantage, one of the best loyalty program service providers in Bangalore, and experience our below-mentioned services.
Different perks or discounts are offered to different groups of buyers in tiered programs based on their spending levels. Our tiered loyalty programs will ensure rewarding your customers in the best way based on their connection with your business.
Value-based loyalty programs create an ethical relationship with the customers. Value-based loyalty programs of ADVAN focus on donating a part of your profit to social causes or charity organizations.
Omnichannel Loyalty Programs
As the name suggests, omnichannel loyalty programs reward customers via different channels like browsers, mobile apps, and in-store. Other than making a purchase, customers are engaged to participate in surveys, rating products, or logging into their account, for which they are rewarded with points.
Paid programs involve an upfront membership fee for the customers, for which they will be provided exclusive offers, services, and discount prices.
Channel & Trade Loyalty Programs
Channel and trade loyalty programs are exclusively designed to motivate the trade/channel partners, including resellers, dealers, promoters, and distributors. The dealer loyalty programs and retailer loyalty programs designed by AD Vantage helps our clients reward their trade partners and motivate them to engage with a brand and not just a sales transaction.
Influencer (B2I) Loyalty Programs
Influencers play a significant role in promoting your business, and ADVAN provides notable influencer (B2I) loyalty programs to reward them. Our unique ideas would inspire your influencers to speak for your brand and hike your customer base.
Rewards & Recognition Programs
Rewards and recognition programs focus on rewarding your customers for trusting your business and choosing you over your competitors. We have plenty of reward program schemes in our store to prompt your customers and be loyal to your business.
To sum up, customer loyalty programs are undoubtedly an efficient marketing tool to attract and retain customers. Conceive and work out the best customer loyalty programs to shoulder your business in this post-pandemic period. Surveys suggest that 90% of the customers are still loyal to their brand even after the pandemic.
When compared to new consumers, existing customers create greater revenue to a business. Now it’s the high-end time for you to design the best loyalty program to reward your customers and trade partners who help your business grow. Stay connected with your customers and let them know they are recognized.