Loyalty, in the business context, is not a one way street. It has to work both ways for a sustainable relationship to grow and benefit both sides. Some of the most successful loyalty services focus on both company and its client to create a win-win situation. It is based on satisfaction of expectations.
The Company Side
A business may develop hundreds of customers over time and it may not care much if a few were to switch loyalties. However, these days, retention is the buzz word. An enterprise, regardless of which sector it is engaged in, need well crafted strategies to ensure customer satisfaction resulting in loyalty. A custom loyalty solution development by LoyaltyXperts is the right thing to. There are various metrics to factor into a program that achieves desired results. Considerations cover:
- Identifying customers on wide ranging parameters such as new or old customers, active and inactive ones, volume of specific products bought by customers and acquisition through various channels;
- Customer behaviours such as spending, revenue generated and frequency of purchases;
- Finely balancing all factors to design a strategy that will show a solid return despite incurring costs for loyalties and the operational costs of such campaigns;
- Analysis of net promoter score to gauge quality of loyalty service;
- Whether a loyalty plan will generate expected result; and,
- Retention rates and churn rates balancing and considering whether this is overall a good thing.
Considerations lead to loyalty solution development based on a strategy. Implementation may be through websites, email campaigns, social media and the selling process itself. The agile process depends on ongoing analytics to refine the strategy. It may be a mix of lures, incentives, rewards and compulsions. How well do these go down with clients is also important. After all one cannot force something down their throats and expect them to swallow it.
The client side is just as important in custom loyalty solution development. Different clients have differing expectations. Some may rate services as being of prime importance. Some prefer price. Others may simply become loyal due to the rewards they are offered. Is it possible to satisfy everyone’s expectation? Are their suggestions welcomed and incorporated into the loyalty program?
This may be compared to walking a tightrope for the loyalty program developer but then, with his expertise a balance is achieved, perhaps with some compromises for the company and their clients.
Outcomes of loyalty solutions are positive. A company’s policies as regards services, pricing and response dramatically improve in favor of their clients. Clients appreciate this increased trustworthiness and that they are appreciated by buying more or by referrals. Relationships improve and so do revenues.