#loyaltyschemes

[loyaltyexpert]

Why You Must Rethink Traditional Loyalty Schemes?

As per a Bond Brand Loyalty report, an average customer is enrolled in more than 14 different loyalty programs at any given time. In such a situation, it becomes extremely difficult to command a strong sense of loyalty. It becomes even more so when digital loyalty programs and channel loyalty programs are regarded just as a scheme and not as a way to strengthen strong bonds with customers and business partners.

Many businesses view their loyalty programs just as schemes. But they fail to realize that customer loyalty is crucial for every business. It’s indispensable for maintaining a positive and strong relationship with customers. American entrepreneur Joseph D. Mansueto once said, “Once you create a loyal customer base, it’s tough for a competitor to take that away.” The quote proves why loyalty schemes must evolve with changing needs of customers and channel partners.

At LoyaltyXpert, we have helped many businesses make a paradigm shift from viewing their customer loyalty programs just as schemes to potent tools for building and sustaining longstanding relationships. In this blog post, we have described how businesses can rethink their B2C and B2B loyalty programs to engage with customers and channel partners and keep them loyal for a long time.

Reinventing loyalty schemes

Faced with so many options, contemporary buyers and decision-makers do not like run-of-the-mill stuff, including loyalty programs. Even if a business has high-quality products or services, it cannot retain its customers for long if it relies on mediocre loyalty programs.

Apart from that, running a loyalty scheme is not easy in the present era. It takes time, effort, and dedication to create a successful loyalty program. That’s why you must rethink and reinvent your loyalty schemes before it’s too late.

Rethinking traditional loyalty point-based schemes

Traditional points-based schemes are not flexible enough to meet the rapidly evolving needs of customers and channel partners the way that new technologies can. A study conducted by Deloitte found the changing attitudes of customers and business partners toward traditional loyalty schemes.

In the study, about half of customers said that they like points-based loyalty schemes, while 47% of customers redeem their loyalty points and take advantage of all offers they receive through loyalty schemes.

But when it came to the experience a brand offers, more than half of customers said that the experience and brand communication is just as important as the loyalty scheme benefits while the same number of customers said that they would like the option of personalized rewards based on their purchase history.

The same research also found that when the customers were asked about their attitude toward loyalty schemes, about 42% of them said that they need more than points to buy from a brand. Even as participation rates in loyalty schemes were high, a majority of customers regarded being rewarded for their loyalty as the norm and not a differentiator. All these stats demonstrate why a loyalty program needs to go beyond point-based rewards.

Traditional loyalty schemes can become a financial liability

Traditional financially-driven loyalty schemes are an effective way to reward customers and channel partners for their loyalty. But they can become a financial liability for businesses. Many businesses don’t identify the true costs of traditional loyalty schemes.

The major costs associated with traditional loyalty schemes are the costs of offering rewards such as points, discounts, free products, and more. When customers and channel partners redeem their points and avail of the offers they are eligible for under the loyalty schemes, the redemption costs may put enormous pressure on a business’s balance sheet.

Traditional loyalty schemes can be difficult to manage and may require considerable resources to run. Furthermore, businesses must also consider the cost of administering and marketing the loyalty scheme as well as the cost of any customer service issues that may arise. All these costs can accumulate quite fast and make it extremely unviable for a business to maintain the program in the long run.

However, on the other hand, reinventing traditional loyalty schemes can help businesses manage their costs and encourage their customers and business partners to buy more from them. By automating and streamlining their loyalty programs, businesses can reduce the costs associated with their traditional loyalty programs and run more cost-effective and efficient programs.

All in all,

For loyalty programs to be successful, they have to be more than just schemes. They must show your customers and channel partners how valued they are and you’re willing to walk the extra mile for them. That’s why traditional loyalty schemes must be reinvented to attract and retain contemporary customers and channel partners.

At LoyaltyXpert, we have helped a wide range of businesses across industries to rethink and reinvent their traditional loyalty programs. We can equip you with the right solutions so that you can do the same. If you’re curious to know how we can help, then call us today or book a free demo.

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[advantageintegratedmarketing]

AD Vantage Loyalty Program Services

AD Vantage is a loyalty program company that helps businesses to retain their customers and drive revenue growth. We provide businesses with the tools and strategies they need to develop and manage effective loyalty programs, which reward customers for their repeat business and incentivize them to be loyal.

Designing and implementing loyalty programs: AD Vantage work with businesses to design and implement loyalty programs that are tailored to their specific needs and goals. We help businesses to determine what rewards and incentives will be most effective in encouraging customer loyalty, and they create the systems and processes needed to manage and track the program.

Data analytics: AD Vantage uses data analytics to track customer behavior and measure the effectiveness of loyalty programs. By analyzing customer data, we identify trends and patterns that help businesses to better understand their customers and develop targeted marketing campaigns.

Customer engagement: Our loyalty programs also play a role in engaging customers and encouraging them to participate in the loyalty program. They create marketing materials and campaigns that promote the benefits of the program, and they provide customer support to help customers understand how to participate.

Technology solutions: The loyalty programs of AD Vantage provide technology solutions that allow businesses to manage their loyalty programs, track customer behavior, and measure program effectiveness. These solutions may include software platforms, mobile apps, and other digital tools that make it easy for businesses to manage and track their loyalty programs.

Customer segmentation: We help businesses segment their customers based on demographics, purchase history, and other factors. This allows businesses to target specific customer groups with personalized rewards and incentives that are more likely to appeal to their interests and needs.

Customer feedback: AD Vantage provide businesses with tools to collect customer feedback, which can be used to improve the loyalty program and other aspects of the customer experience. This feedback can be collected through surveys, reviews, and other methods, and can provide valuable insights into customer preferences and behaviors.

Partnership and alliances: Our loyalty program can help businesses form partnerships and alliances with other companies to offer joint loyalty programs. This can expand the reach of the loyalty program and offer customers more options for rewards and incentives.

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[revolutiontshirt]

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[stonehillshairdressing]

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[loyaltyrewardstamp]

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[surveycircle]

Tweeted

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— Daily Research @SurveyCircle (@daily_research) Aug 4, 2022

[showcasebeautywithclaire]

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[revolutiontshirt]

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