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How to Protect Customer Loyalty with the Loyalty Management Solution

November 20th, 2015 Ashley Harbaugh No comments

The relationship between a customer and a business is no different than any other type of relationship. It requires connection and trust by both sides to keep running smoothly, as well as commitment. And if a customer doesn’t feel they are getting value, or don’t feel appreciated, then they have no qualms about breaking it off.

A loyal customer base is the core of a company’s business, and keeping them happy is a crucial way to maximize business investment.

An existing customer already understands what you offer, and what sets you apart from your competitors – you don’t need to spend the time and energy trying to convince them of this. With industry thought leaders putting new customer acquisition costs at four to ten times more than it takes to retain an existing customer, businesses can better protect their profits by protecting their customer loyalty.

And companies don’t need to take wild guesses about how to accomplish this. With loyalty management technology – such as Ignify’s Loyalty Management Solution – giving businesses insight into loyalty program members and their behavior, companies can more quickly identify customer needs and how best to serve them.

Check out three ways the Loyalty Management Solution helps companies provide the consistent, targeted engagement that cements customer dedication.

1. Create Personalized Offers

Loyalty program members want offers tailored to their specific circumstances – and the more tailored the offer, the more likely it will convert into a purchase.

The Loyalty Management Solution offers a centralized customer database that provides all relevant information pertaining to the customer. Merchants can include any type of data parameters they wish, such as a customer’s birthday, anniversary, age, preferences, etc. Also, the merchant can identify if the customer is connected to any other customers in the system (e.g., a spouse, a child), and can create offers based on that relationship.

The Loyalty Management Solution provides a comprehensive look at loyalty program member information

The Loyalty Management Solution provides a comprehensive look at loyalty program member information – from personal details, to recent issues, to recent loyalty transactions.

2. Create Loyalty Tiers

Exclusivity works because people like to be thought of as special, unique – not like everyone else. But interestingly, people also like being part of a group – a like-minded group helps validate choices and preferences, which can in turn be a powerful motivator.

By creating different tiers in a loyalty program (bronze, silver, gold, etc.), as well as specific rules for gaining membership into those tiers, companies are able to create both a sense of community, and a sense of distinction. Award tiers also give customers a goal – if they want the more exciting perks that are in the higher level, they have an incentive to complete the actions that enable them to do so.

The Loyalty Management Solution enables companies to easily create multiple loyalty tiers and input the criteria customers must follow in order to gain membership into the tiers.

Easily create different reward tiers and the criteria customers must meet in order to gain access to that tier. Also tie reward bonuses into tier membership

Easily create different reward tiers, and the criteria customers must meet in order to gain access to that tier. Also, tie reward bonuses into tier membership (e.g. customers who reach 1,000 points are labeled as Bronze customers, and receive a $10 gift card upon entry).

3. Measure What Works – and What Doesn’t

If a company doesn’t have any insight into what initiatives are successful and which ones aren’t, then they won’t be able to pinpoint the initiatives that are contributing to that success, and which ones are hindering it.

The Loyalty Management Solution provides in-depth analytics and reports on loyalty program activity, enabling companies to identify reward response rates, redemptions, accruals, responses to promotional campaigns, etc.

The Loyalty Management Solution dashboard is also an excellent way for sales reps to see, at a glance, loyalty program performance and trends in one place. These quantitative measurements provide businesses valuable data, which in turn helps guide companies toward developing loyalty programs that deliver popular rewards.

Dashboards are a helpful way to see a quick graphical overview of loyalty program data

Dashboards are a helpful way to see a quick, graphical overview of loyalty program data. As the dashboard graphs are dynamic, sales reps can simply click on the graph – or parts of the graph – to drill down further into the data.  

Creating a loyalty program that not only generates an initial attraction but also increases customer lifetime value is an important way to both give – and receive – value from customers. If you have any questions about how to leverage Ignify’s Loyalty Management Solution for loyalty program initiatives, please email loyalty@ignify.com.

Ashley Harbaugh is a Marketing Coordinator at Ignify. Ignify is winner/finalist of the Worldwide Microsoft Partner Award in 2014, 2013, 2012, 2011 and 2010, and offers eCommerce, ERP, CRM, Order Management and POS solutions based on the Microsoft Dynamics line of products. Ignify has been included as the fastest growing business in North America for seven years in a row by Inc. Magazine and Deloitte in the FAST 500 from 2008 to 2013.