Travel Perks Beyond Frequent Flyer Points – Loyalty Program Member Benefits The new age consumer’s attitude towards loyalty programs goes beyond points and miles. That’s largely due to the generational shift and growing clout to millennials who prioritize ‘rewarding experiences’ over frequent flyer points. This shift is backed up by research, finding that 78% of millennials prefer to spend on experiences rather than physical things. (Source)
Getting a customer to develop lifetime loyalty is like hitting the jackpot in a loyalty program. Today more than ever, brands are focusing on repeat business as loyal customers keep the revenue flowing. A survey claims that loyal customers spend 67% more than the regular ones. In this fast-growing digital era, it is necessary to retrofit the traditional strategies of customer retention and employ engagement-driven solutions to keep the loyal customer base intact. Here are some of the best ways to increase customer loyalty and retention –
Loyalty programs are fast becoming the backbone of the retail marketing toolkit, aimed to increase revenue and maximize retention. Studies suggest that about 84% of customers like to stick to a brand offering a loyalty or reward program while 66% of those say that an innovative reward scheme influences their purchase behavior. (Source) Having a general loyalty program is not enough. Standing out in this world of choice requires more than just offering a good loyalty program. An innovative loyalty program implemented carefully while considering customers’ decision-making process has the ability to turn even a fickle fan into a loyal follower. So how do you implement a loyalty program effectively?
According to a Loyalty Census report of 2016, there are 3.8 billion members belonging to a loyalty program. (Source) With so many memberships, it becomes difficult to reach each and every customer through E-commerce. In such a challenging landscape, marketers can only rely on data and the use of artificial intelligence to boost brand affinity and conversion. The use of AI will not only transform member experience but also ensure that loyalty program delivers positive results for the brand. AI enables brands to create engaging experiences using deep learning which is just an advanced form of machine learning.
Loyalty programs have witnessed a dramatic shift in recent years. They have evolved far beyond punch cards. For a vast majority of consumers, loyalty programs are a huge part of their shopping experience. While some will join to get exclusive discounts, others are simply loyal to get deeper and fuller discounts. Regardless, businesses that implement loyalty programs have to start coming up with new strategies to motivate ‘customer engagement’ and ‘brand advocacy.’ The key is to build a creative loyalty program that excites your target consumers. Here are the Top Customer Retention Strategies to mastering customer loyalty and creating brand advocates: Research Adequately Before implementing a loyalty program, do thorough research.
In this age of endless choices, differentiation is paramount. In order to make your brand a success, you need a unique marketing plan. Retail marketing is no more a linear process. Some brands bank on a loyalty programs with heavy discounts and rewards, while others feel more comfortable building a connection with their existing customers and winning them over over time. Speaking of time, there is no better time to talk about upcoming loyalty trends than now. Let us take a look at the top upcoming customer loyalty trends: Incentivized Referrals Through ‘Word of Mouth’ Marketing Did you know that, “…only 29% of satisfied customers [will] refer your brand to others” (Source).
In this age of digitization, businesses are seeking a competitive edge to deliver a seamless experience. In a sea of game-changing tech tools, anything goes viral these days. It is crucial for marketers to keep a close eye on the new trends that could potentially change the digital landscape. Recent market research shows that by 2020, product and price will no longer be the key differentiators for brands, so much as customer experience! Customer experience directly impacts business growth and helps a brand stand out from the rest, especially since “42% of retail customers in the US won’t…shop again from a brand after two bad experiences” (Source).
What is the major difference between a company that continues to grow and a company that doesn’t? Customer Retention! While it is tempting to want to devout lots of your company’s resources to growing new business and attracting new customers, the key to success often rests on your company’s ability to champion customer satisfaction and customer retention. Investing in customer retention strategies makes customers happy, which can result in a greater ROI. Consider the following statistics: “Selling to an existing customer is 6-7 times cheaper” (Source).
To be frank, positive brand equity positively impacts customer loyalty! The perception that customers form about a brand is where the power of branding lies. Brands that put their attention and energy into how a customer perceives their brand are what will allow a brand to occupy a larger space in the market. As the story goes, the larger your brand gets, the more opinions and expectations will fall upon your brand. Is your travel brand ready to operate in a larger space?
Did you know, that a business could save more money by investing in a loyalty program than prospecting for new customers? “Existing [loyal] customers are spending 67% more than new customers” (Source), and “it costs a business 5-25x more to acquire new customers than it does to sell or [create loyalty] to existing ones” (Source). Ergo, it is imperative to think about a customer correct acquisition strategy or plain and simple: Loyalty begets loyalty. Customer loyalty programs, like a travel club, pay for itself.