Why you should use customer loyalty programmes to improve personalised services
Undoubtedly, customers are key in any business and as such the marketing departments of many companies are usually focused on luring consumers to their brands. As much as the department is saddled with the responsibility of generating new lead funnels, maintaining a solid relationship with existing customers isn't left out of the equation. Studies have shown that it’s at least six times more expensive for businesses to acquire a new customer than to keep an existing one.
In this light, customer loyalty programmes are increasingly predominant in marketing so as to help retain the existing customers. A study revealed that 63% of high-performing marketers are already using loyalty programmes platforms. It is also expected that the use of customer loyalty programmes platforms is projected to grow 80% in the next two years.
According to a KPMG report, when a customer is loyal to a brand, 86% will recommend the company to friends and family, 66% are likely to write a positive online review after a good experience, while 46% will remain loyal even after a bad experience.
To help consumers stay committed to a brand, customer loyalty programmes are introduced to encourage them to continually shop at or use the services of a business. The programmes are run by a company to offer benefits to repeat customers and these benefits may be in the form of rebates, discounts, coupons, free products or other promotions.
Typically, the company sets up an account for customers and then issue them a loyalty card which could be called, rewards card, points card, advantage card, or club card. The card helps identify the holder as a participant of the loyalty programmes. To collect points to the loyalty card, customers earn it as they make a purchase or use a service. Once the card is presented, the customer receives either a discount on the current purchase or an allotment of points that can be used for future purchases.
A typical example of companies that use loyalty programmes is Bolt (formerly known as Taxify), Uber, Spar, Amazon Prime, TOMS, Apple, Starbucks amongst others. Taking into consideration that customers are in a way enticed to spend more to earn more, vendors or companies are also not left out of the benefits of loyalty programmes.
How are companies at an advantage in customer loyalty programmes?
Over time, loyalty programmes have proven to be one of the most effective schemes for increasing revenue, continually boosting sales and inspiring customer loyalty. With customer loyalty programmes, companies are able to understand the behavioural pattern, spending habits and history as well as the demographic of their customers.
This way, organisations are able to know how best to reach out to customers either for marketing purposes or specific product targeting and also develop a solid relationship with them. In addition, the companies are informed on the activity level of the client, creating an avenue for them to grow a strong loyal customer base.
Based on the data derived on customer behaviour, spending habits, customer demographic and spending history, companies are enabled to make data-driven decisions that suit the consumers and the organisation respectively. For instance, in a store like Shoprite where customers have varieties of options, a vendor will know what products to stock up and where to position them based on how customers are interacting with the product.
Technology, today, has made the customer loyalty programmes develop into an advanced digital platform that enables organisations to engage their customers in various dimensions -- one of which is [AI]'s MONI solution.
[AI] MONI is a customer loyalty system that helps companies reward customers for their loyalty through points collected. For companies using the system, the scheme proffers complete customer behaviour data and analytics to provide a point-based reward scheme for their loyal customers. With this, users can come on the platform, earn and spend points as they buy products/services offered by companies affiliated with the MONI platform.
The application gives companies a platform to advertise products/services, know their customers, gain insights on behavioural patterns of prospective clients and ultimately provide targeted adverts to capture new clients. [AI]’s years of experience in data collection, behavioural science and an advanced analytics platform makes MONI the perfect loyalty scheme for providing an excellent and targeted customer experience.
The system is built on a solid foundation of data collection, customer analytics and machine learning. With MONI time, series of transactions can be formed to provide a chronicle of customers’ buying habits. It can create lifestyle segments on an analysis of both geo/demographic/psychographic and actual behavioural transaction data.
With MONI, customers using the system can spend their points on either airtime or data through the app. The airtime or data bought is credited to the phone number registered to the account.
For more information about the [AI] MONI Customer Loyalty solution please click here.