Customers always prefer options, they like testing and seek innovation. Now, when consumers’ preferences are vigorously changing, with customers ready to experience new brands, the marketing effort of firms is getting interesting. Every brand and product has their point of persona and differentiation. It is up to the marketing manager to oblige to an audience who closely aligns with the brand persona in a bid to shape brand loyalty. Customer loyalty is a rare quality today, and loyalty management programs help in retaining customers. Customer engagement, prizes, convenience, offers, store credits, and contests are some of many tools used in loyalty management. In this blog, Quantzig has listed the top five benefits of loyalty management programs.
According to the loyalty management programs experts at Quantzig, “It is important to invest in loyalty management programs to keep a hold of customers.”
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Top benefits of loyalty management programs
- Better customer retention: Retaining the customers who can drive the revenue of the company throughout their lifetime is the main aim of loyalty programs. Companies and stores offer many types of incentives to customers for being faithful to their brand. Loyalty points, discount coupons, and redemption are often used so that the customer doesn’t find flaws and purchase from a competitor. So, is the spending on loyalty management programs right? First, it improves customer retention rate and then drives future revenues. Also, organizations will have to spend less money on marketing and advertising to influence purchases within the existing customer base. Also, research suggests that loyalty programs upsurge the overall revenue, purchase frequency, and member spend.
- Gather customer data and trends: In today’s scenario, data is very powerful. Loyalty management programs provide the skill to gather customer data, purchase patterns, and their spending habits. It helps companies to find customer trends, their favorite shopping channels, and their reaction to marketing programs. Collecting such immense customer data can help the company with inventory management, promotional planning, and pricing. Also, marketers can screen the outcomes of special promotions and new channels and drive the complete efficiency of their marketing programs. It is remarkable how data analytics tools can know a customer as good as or way better than the traditional stores.
- Increase in share of wallet: The loyalty management programs data collected can be used to up-sell or cross-sell to the existing customer. For example, loyalty programs can be used to provide customers with extended warranties after an item is purchased or propose accessories that would match the product. One of the best instances is the airline frequent flyer miles program. Once loyalty is recognized, customers spend more on the brand than a non-loyal customer.
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Quantzig is a global analytics and advisory firm with offices in the US, UK, Canada, China, and India. For more than 15 years, we have assisted our clients across the globe with end-to-end data modeling capabilities to leverage analytics for prudent decision making. Today, our firm consists of 120+ clients, including 45 Fortune 500 companies. For more information on all of Quantzig’s services and the solutions they have provided to Fortune 500 clients across all industries, please contact us.