All local and global Brands can implement several sorts of loyalty programs based on characteristics such as their company's size, their customers' normal buy frequency, and their average order value (AOV). Points-based loyalty programs, tiered loyalty programs, and pay-to-join loyalty programs are all widespread. Customers are often rewarded with free stuff, early access to sales, products, and coupons as part of a loyalty management system. Brand loyalty programs have been shown to be incredibly effective in encouraging repeat sales. According to the "Get with the Program" research, when all other factors are equal, 72% of consumers will choose a retailer that offers a loyalty program over one that does not.
A loyalty management system's main goal is to keep existing consumers and encourage them to buy from you again. According to a recent study, 66% of global customers spend more on brands with which they are emotionally linked or devoted.
Here are the three fascinating facts about the effectiveness of loyalty programs:
- Loyalty programs are considered by 70% of members to be an important component of their engagement with a firm.
- A successful loyalty program can boost a brand's market share by 20%.
- Consumers are more inclined to visit an online website with a loyalty program, according to 84% of respondents.
You should invest in building loyalty management software just to get showered with its amazing benefits:
Strong Customer Bonding
Loyalty programs have evolved from a transactional system to an emotional and personal relationship between a business and its customers through time. More firms are implementing higher customization and experiential benefits into their loyalty programs, demonstrating this. In exchange for their commitment to a single brand, consumers are increasingly expecting early access and VIP advantages. Several companies have integrated their loyalty programs with their customer relationship management (CRM) systems to provide highly tailored rewards to their customers.
Rising AOV (Average Order Value)
The Average Order Value (AOV) is a straightforward but crucial measure that shows how much a consumer spends on average each time they purchase with you. It's crucial since you are boosting overall revenue while incurring no acquisition costs. It's also far easier to persuade an established customer to add a few dollars to their order than it is to persuade a new visitor to complete the entire sales funnel. According to reports, a well-designed customer reward program raise the Average Order Value by 13%. Of course, this is a conservative estimate, and there have been cases where the loyalty program resulted in a 25% to 35% increase in Average Order Value. This clearly shows that a successful loyalty management system not only keeps your loyal consumers but also encourages them to spend more on each purchase.
Strengthens Brand Awareness
When opposed to an invoice, a small business customer loyalty program provides significantly more information about a consumer (demographics, buying patterns, product preferences, and so on). The information gained through a loyalty program is incredibly useful because it indicates a customer's genuine preferences as disclosed by a survey report. Though loyalty programs began as a transactional platform, brands have realized their potential as a data goldmine over time. Several top brands now use Loyalty program data to anticipate customer purchase intent and marketing campaign receptivity. Furthermore, the ability to integrate Loyalty programs with CRM platforms enables organizations to aggregate data from many sources, such as social media, in-store, and mobile apps, to develop a rich profile for each consumer.
Top 5 Loyalty Management Software for your business
1. Novus Loyalty: Innovative cloud-based Loyalty Solution for esp. Banking, e-commerce, and Retail enable businesses to engage and retain customers with real-time personalized rewards. A loyalty management system that crafts beautiful programs, rewards customers on their purchases via points, fosters referrals, and much more.
2. Yotpo: Yotpo is a leading eCommerce marketing platform that helps thousands of forward-thinking brands accelerate direct-to-consumer growth. Our single-platform approach integrates data-driven solutions for reviews, loyalty, SMS marketing, and more.
3. Xoxoday: Xoxoday Plum helps automate rewards, incentives & payouts programs at a global scale with multi-currency and multi-region capabilities. We make it simple for the marketing and sales teams to send rewards, incentives, and e-gifts across the customer lifecycle with a reward point system using workflows at scale.
4. Zinrelo: Zinrelo is a modern-day, loyalty rewards platform that maximizes repeat sales and per-customer revenue through 360-degree customer engagement, data sciences, and machine learning.
5. Loyalty Lion: LoyaltyLion is a data-driven loyalty and engagement platform, helping fast-growth eCommerce merchants power longer-lasting relationships and sustainable growth.
Conclusion
Managing a client loyalty program is a never-ending task. Once you've implemented it, you'll need to monitor its performance to see how customers interact with it and how it affects your business. It's impossible to compete just on the basis of your product or service in today's culture. In comparison to your competition, your customers' opinion of the value of your product or service is quite important. A loyalty program is a great method to remind customers of how valuable they are. Novus Loyalty is always ready to aid you with the greatest, faultless, and result-driven loyalty management software development services, so don't hesitate to contact us at any time if you'd like to make your brand a big success with right loyalty software.