A great loyalty management system not only ensure that customers feel appreciated, but also increase revenue generation in the long run.
Just announcing a customer loyalty program will, no doubt, generate great attention; value from such programs may be harder to extract. It is therefore necessary for firms to focus on effective loyalty programs that will leave a lasting impression on the consumers.
CRM solutions can be used to improve the effectiveness of these loyalty programs and improve customer satisfaction. How? Read on.
1. Identify program goals
What is the purpose of your loyalty programs? Is it to...
- entice customers
- retain customers
- get higher wallet share
- generate greater profits
- get insights into customer behavior
2. Track customer spending habits
As mentioned in the first point, loyalty management system offer a great way to keep track of customer spending habits. Programs embedded inside CRM solutions offer comprehensive tools for accumulating customer data. The data collected can be analysed to offer custom schemes and discounts.
3. Never shortchange points
Businesses employ different approaches to reward customers and enhance the company-consumer relationship. Honor your commitments while executing a loyalty program. Don't put in complex rules and regulations. Those will scare away potential customers and give an impression that the program is just a bait. give excellent rewards for points accumulated (flyer miles and cool gadgets are favorites).
Avoid situations where points are awarded but most customers never accumulate enough to redeem anything meaningful. If you shortchange customers, word spreads around (thanks to social media).
4. Profile vendor information
Companies can use CRM solutions to gain insight on consumer spending habits and determine ways in which they can use that information to improve service delivery and create better relationships between themselves and customers.Do the same for vendors through your CRM solution. This will help you to rightly match vendors with the customer's expectation. CRM solutions help the management
5. Log and analyse interaction history of both customers and vendors
Interaction history offers vital clues to determine the parameters around loyalty programs. For example, you will be able to set the amount of loyalty points earned for a specific amount of cash spent.There is always a risk of excluding most customers if this information is not properly gathered, or creating a scenario where the company gives out too many loyalty points that eventually eat into the revenue when customers redeem them.
CRM solutions can help establish an effective loyalty program that impacts both the customers and the growth of the business positively. Try CRMNEXT today.