From customer focus to customer loyalty: Does your company need a loyalty program?
Marketers know that it costs up to five times more to acquire a new customer than to retain an existing customer. In addition, regular customers spend more on average and recommend the company to others, which in turn attracts new customers. But: Why are customers loyal — or why not? Rarely is the answer to this question “because we give a 5% discount on the seventh purchase,” but rather “because we reliably offer good quality and the best service.” And yet when it comes to “Loyalty”, many marketers still think of discount systems with customer cards first and not of an excellent user experience. Our approach: The two belong together — which is why a loyalty concept starts well before the introduction of a bonus program with a focus on customer orientation.
Gradual expansion instead of major investment
One important point first: Most companies don't have to immediately invest in expensive loyalty technologies if they want to set up a customer loyalty program. Existing systems and processes can often be optimized to strengthen customer loyalty.
At Publicare, we are happy to advise you on the various expansion stages in loyalty management. Together, we develop a strategy that fits your company, your goals, and your customers.
The customer at the center of all processes
A customer-oriented corporate culture is the first step to promoting loyalty: A culture in which the customer comes first in all areas as possible. This is because companies that consistently practice customer orientation benefit from higher customer retention rates, increased willingness to recommend others, lower costs for acquiring new customers and a loyal customer base.
It helps to incorporate customer orientation into all processes: Customer loyalty starts with the first purchase and every interaction in the customer life cycle is important to build long-term and emotional customer relationships. Every point of contact is an opportunity to connect with customers and get them excited about the brand — with effective, personalized and cross-channel communication.
Preparing for a customer loyalty program: Set the right course
The better you implement a customer loyalty program, the more effective it is:
- Use customer feedback systematically: Develop methods to effectively incorporate customer feedback into product development and service improvement.
- Make data-based decisions: Use modern analysis tools to identify customer needs at an early stage and react proactively to them.
- Create a customer-oriented corporate culture: Train and motivate your employees to always focus on customer benefits.
Thorough preparation makes it easier to implement a customer loyalty program later on. Customers who have already had positive experiences with a company are more willing to participate in a loyalty program and benefit from it.
Does a loyalty program make sense for you?
The decision for or against a customer loyalty program depends on many factors. In discussions with our customers, we go through a series of key questions in order to obtain a comprehensive picture of their goals and requirements and to work together to develop the best customer loyalty strategy. Among other things:
- What specific goals are you pursuing with your customer loyalty measures and have you defined measurable KPIs for evaluating customer loyalty?
- Do you know your key customer segments and have you developed appropriate personas?
- How do you collect and analyze customer data?
- What types of customer loyalty offers are you currently using? (e.g. loyalty points, discounts, exclusive experiences, loyalty programs with various levels and benefits, personalized offers, referral programs, exclusive access to collaborations and partnerships, subscription services, wish lists, “buy now, pay later” option). How do you rate the success of these measures?
- Are your customer retention measures easily accessible to your customers or are there any hurdles?
- Which channels do you use to communicate with your customers?
- How do you get customer feedback and use it?
- Which technologies do you use to support your customer loyalty programs?
- How keen is your company to experiment when it comes to introducing new approaches?
- Are there sufficient resources available to maintain and develop a customer loyalty program?
Individual solutions instead of all-inclusive recipes
Not every company needs a complex loyalty program. Instead of introducing a points collection program, the loyalty strategy can also rely on user-generated content and a community platform where customers can share their experiences, ask questions and receive expert tips. The result: higher customer satisfaction, increased repurchase rates and a significant increase in new customer acquisition through referrals — all without expensive new technology investments.
Sometimes even small adjustments to customer orientation and the expansion of omnichannel CRM lifecycle campaigns are enough to achieve a big effect.
Let us explore your loyalty management options together. Contact us for a non-binding consultation — we look forward to helping you sustainably strengthen the loyalty of your customers.
