Loyalty programs are known to increase both the value of customer relationships and revenue for businesses. A recent study by AC Nielsen shows that 60% of consumers consider loyalty programs an important factor in their buying decisions. And customers spend 46% more with brands that deploy loyalty programs on average.
But what makes loyalty programs tick, and how should a retailer choose the program’s value back to the bottom line?
A successful loyalty program is built around powerful rewards and incentives that encourage frequent visits and increased spending.
Increasing visit frequency or repeat footfalls is just one reason customer loyalty matters.
Designing Incentives
Attractive incentives are the main driver for buying behaviors. A good loyalty program helps retail businesses offer custom rewards. Retailers are able to assign point values and create rewards that encourage customers to come back and repeat buy. An effective loyalty program impacts customer behavior by aligning point values with the number of visits. Design rewards to entice members to return to increase revenue.
Mobile Loyalty
With Forrester reporting that mobile will account for 29% of online consumer purchases in 2014—up from 21% last year—it’s now imperative that a loyalty program be mobile too.
What, exactly, does mobile loyalty look like?
A Mobile loyalty program depends on the retailer’s business, his target audience and the kind of relationship retailer is looking to build. But despite all if’s and buts brands are now extending loyalty programs to mobile environments in ways that create new customer interactions and build brand value.
iVend Loyalty portal is distinct way to integrate mobility where customers enroll in a loyalty program, and see reward balances—all on a mobile responsive portal. Remarkably, many retail brands have not yet reached this point, but sooner or later most of the brands will have to: “Customers today expect a program to deliver customization, value, and relevance everywhere, all the time”
Increasing Visit Frequency
Increasing visit frequency should be the core of every loyalty program. Frequency translates to members visiting more, and increasing their spend over time. Research indicates that loyalty program members not only spend more when they visit, they also visit about 20% more often than non-members.
By designing incentives that entice customers and urge them to shop are one of the most impactful way to motivate customer decisions is to understand what they want, and to stay in touch.
Loyalty programs encourage people to Buy and then repeat the purchase. Customers like to be rewarded for being loyal — especially if the rewards program offers them a significant savings or discount. Incorporating rewards programs that connect to customers’ socially puts additional focus on the business, thereby increasing the potential for new customers.
Recognition is the Buzz-word – Acknowledge the Customer with instant Gratification
More I buy more I feel the need to be rewarded. iVend loyalty programs help in setting up exclusive level definitions for various customer categories like Silver, Gold & Platinum
One of the most valuable aspect of iVend Loyalty is that it instills among retailers the abilities to identify individual customers and to measure and understand their buying patterns. This behavioral trend far outweighs the “currency” value of providing consumers with rewards for shopping at any retail store
The Shopping behavioral intelligence of loyalty program can make retailer use it many innovative ways to tailor new promotional activities with focused and targeted campaigns. A customer loyalty program therefore becomes an ingenious marketing tool that makes a memorable statement about a Retail business.
Leveraging iVend Loyalty makes it possible for retailers to get a clear, unified view of brand interactions across channels whether online, mobile or instore. The integrated Loyalty experience enhances retailer’s ability to offer customers personalized service based on all they know about them—no matter which channel they opt to shop from. Loyalty is the crucial bridge between offline and online. And an integrated loyalty application such as iVend Loyalty that reflects all-channel view of consumer behavior is a big opportunity for retail chain owners to boost sales and increase profitability.
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