Why is a Loyalty Program important?
According to the classic 20/80 rule, 80% of a brand’s revenue is contributed by the top 20% of its members.
This indicates that planning a member management strategy and nurturing loyal customers for repeat purchases and word-of-mouth is essential for establishing a stable market foundation.
However, to do a good job, one must first sharpen one’s tools.
A comprehensive loyalty program helps brands grasp member information and extract precise marketing strategies from the data, thereby providing members with a more personalized shopping experience.
This blog will introduce a loyalty program’s benefits, analyze common challenges in its use, and provide criteria for selecting a member system!
Firstly, WHY Do You Need a Loyalty Program? Here’s The 4 Major Benefits!
A loyalty program usually includes functions like basic member information, transaction records, and member segmentation.
It is an essential tool for brands to deepen their member management.
A well-established member system can provide the following 4 major benefits for a brand.
1. Know Your Customers
The member system helps you understand loyal customers by keeping track of their spending, favorite products, and shopping habits.
2. Track Shopping Habits
It follows everything customers do when they shop, like where they come from and what they look at, helping you make better marketing choices.
3. Personalized Messages
The system allows you to send personalized messages to different groups of customers based on their preferences and behavior.
4. Find New Customers
By comparing what your customers do online and offline, you can find new people who might be interested in your products.
We Know There’s Might Be Major Challenges of a Loyalty Program:
a. Unintegrated Online and Offline Channel Information
Brands expanding into multiple online and offline channels often encounter unintegrated data between stores and e-commerce platforms, leading to incomplete records of omnichannel behaviors in the member system, affecting service and marketing strategy precision.
b. Abundance of Data but Lack of Utilization
Brands collect a large amount of first-party data through member systems but often don’t know how to utilize it.
This leads to ineffective segmented communication and time-consuming personalized message production.
c. Difficulty in Optimizing Strategies via Reports
After member communication, brands need to track results.
If member system reports only provide basic information like registration time and purchase frequency, it becomes difficult to attribute consumer behavior to specific activities and refine subsequent marketing focuses.
How To Choose A Good Loyalty Program? Here’s 3 Simple Tips:
1. Can It Connect Different Systems?
To understand how members shop, brands need to combine all their data.
Often, brands pick systems that can’t talk to each other.
The solution?
Find a system that can link with other systems so everything works together smoothly.
2. Does It Help Group Members Well?
A good member system should help you group customers based on their behavior and interests.
For example, using Exabytes New Retail’s DCIU Model – it can identify customers who are likely to shop soon, helping you send the right offers at the right time.
3. Does It Offer Useful Reports?
Your loyalty program should provide detailed reports that help you understand sales trends and customer behavior.
Exabytes New Retail offers various reports that show how different customer groups are performing, helping you make better decisions.
How Exabytes New Retail Helps Brands
Exabytes New Retail is a powerful solution for brands aiming to excel in both online and offline markets.
By seamlessly integrating all systems, it allows for efficient management of sales across various channels.
The platform’s user-friendly loyalty program enhances customer engagement and retention, making it easier for brands to navigate and overcome any challenges.
With features like member selection, detailed sales performance analytics, and the ability to make informed, data-driven decisions, Exabytes New Retail equips brands with the tools they need for sustainable growth and success.
Embrace this comprehensive retail solution and watch your brand thrive in the competitive market landscape.
Learn how one of our clients, Purple Cane, maximized their loyalty program with Exabytes New Retail.