Beginner’s Guide to Building Valuable Customer Loyalty Software Solution for their Business

The retail industry is widespread, with multiple competitors planning and launching new services regularly to bring in more customers. With the advent of e-commerce, retailers have a new platform to dominate. Here, it is important to mention that focusing on keeping the older customers would profit you more.

Statistics show that companies on average spend 6-7 times more money when they are pulling new consumers than for retaining old ones. Indeed, keeping the present customers happy would ensure that they would spend more on their products/services primarily. So, you should consider creating Loyalty Software Solutions for your brand.

Not all customers are the same though, and neither are their preferences. For example, many companies benefit widely from transaction-based reward programs, like offering discounts. However, this does not resonate with all customers. Statistically, 77% of such initiatives fail within the initial two years. Hence, you need to understand your audience and build a program accordingly. This article would help.

What is a retail-based loyalty program?

With retail loyalty programs, retail brands focus on improving particular aspects of their industry-specific concerns. The customer base in the retail market is wide and they have high purchase frequency.

Companies that create Retail Loyalty Program Software deliver a wide product catalogue for their customers. Here, what the retailers offer with their programs determine their success level with consumers, like an exclusive collection of branded items.

Why should you use customer loyalty software?

Integrating the right type of Loyalty Program Software benefits retail business greatly. The solutions have multiple advantages, like a user-friendly interface, simple customer-behaviour tracking features, and security in transactions.

Retailers that offer a high-quality service notice more purchase requests. Statistically, 49% of buyers have spent more on products after opting for a rewards program.

How to create a useful retail loyalty program?

To develop a successful rewards program as a retailer, focus on the following steps.

1. Understand your customers

Consumers are very particular about what they want, in products and the program choices equally. Statistically, 37.5% of consumers join reward programs to earn monetary benefits while 57.4% of them do so to reduce their expenditure rates. To prepare a good loyalty program, you must understand their demands and offer a plan they would feel interested in.

Here, do the following:
1. Assess the buying behaviour of your customers while what they order and which products they search for.

2. Create a comprehensive and detailed list of contacts of your existing customers.

3. Tailor your reward program to meet more than one target audience based on their preferences.

4. Gather insights through their social media feedback.

2. Choose the right program type

To gain noticeable profits, you should implement the best possible rewards program type and Loyalty Program Software. For retailers, transaction-based benefits are the better choice for their clients. These include options like cashback deals, vouchers, and discounts.

1. Points-based system- customers gain points through purchases; a higher number of points equals the best reward.

2. Tier-based system- customers spend more and rise in their tier ranking; lower tiered members gain basic privileges, while to-tier holders gain bigger prices.

3. Paid system- members pay once or annually for VIP access and gain high-level benefits and offers.

4. Subscription-based system- Customers subscribe to retailers at a fixed price on a monthly/yearly/quarterly sequence; they pay on time to continue receiving extra benefits.

3. Plan what to reward

Retailers planning on offering rewards should first decide what actions they would provide the benefits for. Some examples of rewardable customer interactions include:

1. Customers who are continuously buying items during a slow sales period

2. Social media engagement

3. To promote new products to users

4. For referring to new customers

Final Words

Indeed, adding the loyalty program software would improve the functional quality of the program for a better user experience. Plus, retailers can make better adjustments. So, you should implement the software and add more features to enhance the quality of your service.

Do proper research before using any of the options available and review your program better as well.