Loyalty Program helps the company increase many benefits
- Loyalty program exploits customer psychology based on reciprocity rules. Follow that, when customer receive positive care from business – for example rewards from Loyalty programs – reply by positive action like spend or refer to friends,…
- The purpose of Loyalty Program is turn customers into loyal customer and increase retention rate. This brings huge values for business because the cost to acquire a new customer is 7 times higher than the cost to service a current customer. 5% increase in retention rate may result in 25-95% increase in profit.
- Loyalty program helps business protect customers from competitors. Loyal customer will accept a price difference from 8%-13% to redeem services or benefits from Loyalty program.
- Besides ecomnic rewards, if Loyalty Program provide privileged experiences and personal messages, customers will be more attractive. With a detailed database of members, not only limited to the range of products and services provided by the enterprise, but also from the partner system around the program. Business has effective to to interact with members according to their preferences, needs at the right time with a favorite interactive channels.
- Loyalty program helps business encourage customers to provide their information when they realize that providing information will bring personalized experiences. Depending on the region, 60-90% loyal customers will be willing provide at least 1 personal information to business. To get good service from Loyalty program in return.
- Only 12%-15% of customers are loyal to a single retailer, but the smale cadre of shoppers generate between 55%-70% of company sales. The loyalty program helps business increase the rate of loyalty customers and the number of purchases.
- Loyal customer will stay more times, buy more with more values, so bring more cycle value. A current customer spend more 67% money than a new customer.
- With Loyalty program policies and tools, business can drive customer behavior to high-profit products, desired stages or desired merchants.
- Loyalty Program helps businesses reduce competition measures by discounting. Discounts will directly affect the turnover of the business. In addition, customers attracted by discounts will easily switch to competitors when offered larger discounts. Instead of reducing prices, businesses can make policies such as increasing the number of accumulated points, or reducing the number of reward points. These policies are similarly effective, but are more cost effective for businesses and protect brand image.
- Word of Mouth is effective channel for businesses, twice as much as other advertising channels. However, while 83% of customers are willing to introduce a business to their friends, only 29% actually do it. The Loyalty Program will be a great tool for businesses to improve their real referral rates.
- One of the effective strategies that Loyalty programs apply is “dual benefits”, which is to reward both presenter and recommended person. Depending on the business, members even receive rewards based on both criteria: introducing the number of customers and introducing quality customers.
- The Loyalty Program encourages activities such as evaluating product quality, services, sharing social networking experiences, etc. This is a very effective advertising channel to potential customers, especially for e-commerce products or services. 92% of buyers believe in referrals from friends and 70% believe in the reviews of people who have used products or services on the website.
The solution is totally tailor-made based on your customer analytic, your strategy and development targets.
With a data-driven program, we build a rich insight about your customers throught their interaction with the ecosystem service that we provide.
Apart from the traditional reward members are offered personalized rewards and benefits based on their transaction history, and even their location.