We need to move away from thinking that there is a quick fix or a quick formula that will make customers loyal. The reality is that customer loyalty is built by understanding who your customers are, what they want from you and then putting them at the heart of everything that you do. And, with the advent of new customer segments, new social engagement, new technologies and new media, a whole new set of expectations has emerged on the part of the customer.
The bottom line for businesses is that genuine customer loyalty is now the product of three of strategic components including customer loyalty strategy, customer experience strategy and customer engagement strategy – all of which are geared towards delivering genuine customer loyalty.
In others words loyalty, is the result of providing a seamlessly integrated loyalty strategy, brilliant customer experiences and relevant engagement with your customers, all to acknowledge how much you appreciate their business – at every single interaction with them.
This has to be supported by a ruthless focus on Customer Insights, Metrics and Commercials – helping you to develop bespoke customer strategies that are rooted in genuine customer understanding, are easily and readily measurable, and are designed to contribute to the core financial objectives of your business and deliver increased customer loyalty.
As a result of this, many brands are looking for ways to measure the effectiveness of their Loyalty Programme; one of the most important metrics is ‘Programme Participation’ which we believe is the holy-grail for Loyalty Programme success. Customers who are pro-actively participating in your Loyalty Programme and redeeming their rewards have a bigger impact in terms of spend and in terms of that top line contribution of loyalty
Customers, who use their card, pro-actively participate and redeem their rewards, see the value and vote with their feet. This is where brands see the highest ROI for their programme. For some retailers this means that customers who are in the Loyalty Programme can spend between 40-50% more and in one case in Ireland – up to 80% more, than the customers not pro-actively participating in the Loyalty Programme.
Many brands are looking for ways to benchmark their performance against their industry peers and as a result we developed The Loyalty Performance Index (LPI) which helps brands to understand what they need to aim for in order to achieve better success for their programmes. Download the Loyalty Performance Index.
To conclude customer loyalty, is the result of providing a seamlessly integrated loyalty strategy, brilliant customer experiences and relevant engagement with your customers, all to acknowledge how much you appreciate their business, while constantly measuring and enhancing everything you do to improve on their customer expectations and engender loyalty!