If you feel that none of your competitors have a similar loyalty program, then think again. If you work in an extremely competitive industry, such as paints, plumbing fixtures, laminates, or wire and cables, then at least one of your competitors may offer a similar brand loyalty program, channel loyalty program, or influencer loyalty program.
Companies that offer loyalty programs have increased exponentially in recent years. As per Accenture, more than 90 percent of businesses have some type of loyalty program in place. At the same time, many customers, channel partners, and influencers are members of multiple loyalty programs that directly compete with each other. As per Bond Loyalty’s 2020 Loyalty Report, an average American customer belonged to 14 loyalty programs.
With so many companies offering loyalty programs and so many customers, channel partners, and influencers belonging to multiple loyalty programs, competition is inevitable. This begets the question: “Is loyalty dead?” Or is there something you can do to stay ahead of your competitors who offer similar loyalty programs?
This blog post discusses the strategies you can use to rival a brand that offers a similar loyalty program. If you are determined to win in the battle of loyalty, then this blog post is for you. Read on and thank us later.
1. Communicate your USPs
Even if some of your competitors offer similar loyalty programs, they can’t offer something that you can offer to your customers—your unique selling propositions, or USPs. That makes you unique from the competition and gives you uniqueness that no competitor will ever have.
You can leverage your USPs and build a moat around your business. But most importantly, you need to communicate your USPs to your customers so that they can understand what makes you different. Make sure that you promote the USPs across channels including your website, social media, packaging, press releases, and other marketing campaigns.
2. Build loyalty on values and trust
If you build loyalty on prices or offers, then you may lose your customers to those competitors who offer better prices and offers than you do. But if you build loyalty on your brand value and trust, then you will enjoy enduring loyalty from your customers, channel partners, and influencers.
As per a Criteo study, more than 51 percent of customers said that brand values affect their purchase decisions. A stat released by 5W Public Relations revealed that 71 percent of customers prefer buying from companies that align with their personal beliefs and values. Conversely, many customers will stop buying from brands if they feel that the brand values aren’t aligned with their own.
3. Power your business with ROR
You must have heard the term ROI, which stands for return on investment. Well, ROR stands for Return on Relationship, a term coined by noted social media strategist Ted Rubin, who believes that businesses can drive massive growth and value by building and nurturing enduring relationships with their stakeholders.
ROR is indispensable in the present age as it can help you think beyond competition and carve your path to steadfast and long-lasting loyalty. You can enhance your ROR by listening to your stakeholders and engaging them in interesting conversations. You can also enhance your ROR by providing excellent service to all stakeholders.
4. Level up your after-sales support and service
Would you be surprised to know that a majority of customers, if not all, won’t return after bad customer service? The same goes for channel partners and influencers, who will lose interest to work with you if they experience poor support and service. What’s even worse is that a majority of them will quietly switch to another company and won’t let you know about their experiences with your company.
But by providing excellent after-sales support and service, you can indeed increase loyalty. A study by Texas-based customer engagement software company Khoros revealed that eight out of every ten customers feel more loyal to companies that respond to their queries, requests, or complaints and resolve those immediately. Your after-sales support and service hold the key to enduring loyalty. So, make sure that you level it up.
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5. Be transparent
When it comes to winning the loyalty of your customers, channel partners, and influencers, transparency is the key. A consumer behavior study conducted by Label Insights found that 94 percent of customers will remain loyal to a brand that is transparent in its dealings.
Most businesses, however, only focus on the tip of the iceberg. Very few are transparent about how the loyalty programs work and how the points are rewarded. That’s the reason loyalty program fraud is a rising threat. If you focus on complete transparency, you can stay ahead of the competition. By partnering with a reliable loyalty provider with an exceptional track record such as LoyaltyXpert and investing in its sophisticated loyalty software, you can get features such as dual wallet, which is designed to prevent loyalty program fraud. The platform also provides complete data security and many more value-added services.
6. Build a community
A community of customers, influencers, and sales partners will help you command more loyalty. As per a study, two-thirds of community members said that branded communities made them more loyal to the brands. The study also revealed that more than half of the branded communities said that the community members accounted for increased sales, while more than two-thirds of the branded communities said that the members generated new leads for them.
To build a great community, you need to use a sophisticated loyalty platform that can help you engage with your customers, channel partners, and influencers in the most efficient manner. Apart from that you can leverage the power of social media and focus on constant engagement with all stakeholders to create a vibrant community.
7. Focus on brand consistency
Brand consistency plays a key role in customer loyalty. Nine out of every ten of your potential customers expect to have similar experiences with your brand and a majority of them will leave if they don’t find consistency.
Make sure you deliver high-quality products or services and add exceptional value addition every single time. By providing a consistent experience to your customers, channel partners, and influencers, you live up to their expectations and enhance their sense of loyalty to your brand.
With the intense competitive landscape, you shouldn’t be surprised to find one or more of your competitors running similar loyalty programs. Instead, you must prepare yourself to transcend competition by leveraging sophisticated loyalty solutions and focusing on other aspects of your business’s offerings.
At LoyaltyXpert, we offer cutting-edge loyalty solutions to all types and sizes of businesses and help them design effective brand loyalty programs, channel loyalty programs, and influencer loyalty programs. If you’re looking for proven loyalty programs that will help you stay ahead of the competition, contact us to know more about us and our solutions.