Maintaining a loyal customer base is as essential to long-term success for your organisation as attracting new business. Merely adding new clients as old ones exit is simply not good enough. Your company’s growth requires building on an existing base line, not replacing it.
Now, while some organisations may be happy to rely on their pricing models or products to retain clients, your business can stand out from the rest by going the extra mile for your customers. Providing incentives and rewards for sustained loyalty or large orders, for example, is a fantastic way to offer your most valuable clients a tangible reason to return.
So, why exactly is it important to track your customer loyalty programs and how can you go about it?
Tracking rewards can be an incentive for customer loyalty.
Proven effectiveness of loyalty programs
A Technology Advice survey on loyalty programs and what exactly appeals to customers shown some light on the effectiveness of such initiatives. Specifically, 50 per cent of survey respondents highlighted the financial savings benefits of many loyalty schemes. Interestingly, an impressive 41.1 per cent also indicated that earning and receiving rewards was a key motivator.
In terms of these rewards, enabling customers to accrue points they can redeem for a variety of perks, such as tickets to events or maybe even travel incentives, is an effective way of encouraging the loyalty organisations seek.
Adding gamification to the mix
Gamification as a concept is, whilst relatively new, is set to have a big impact on business.
There’s no denying how prevalent video games have become in modern society. Yet, seeing how the mechanics of an enticing game have started to influence other aspects of our lives has been interesting. Gamification as a concept is, whilst relatively new, set to have a big impact on business according to Deloitte.
The ability to track and set incentive goals is a particularly interesting area for customer loyalty programs, according to Hanover Research. Giving your customers the ability to monitor their own progress can give them the extra motivation to pay for additional products or services. If you would see you’re close to your next reward, wouldn’t you want to go that little bit further to reach it?