The Role of Customer Experience in American Loyalty Programs

It is widely acknowledged that obtaining a new customer can be much more expensive than maintaining an existing one. For example, Monetate's recent research discovered that an e-commerce customer who has had one previous shopping experience with a company is more than three times more likely to convert again than a brand new visitor, and customers who have purchased multiple times are more than five times more likely to convert. It comes to reason that customer loyalty programs can be extremely beneficial to any business with recurring consumers. Loyalty programs work well for customer retention because they keep people from switching to competitors. These programs can also increase a customer's lifetime value by incentivizing them to spend more and shop more frequently. Successful customer loyalty programs benefit both brands and customers. They generate additional recurring revenue for the organization and delight customers with perks and rewards.

All of this contributes to a better customer experience, which might result in higher returns.

With so much competition today, one major issue is to remain visible and illustrate the benefit of your customer loyalty program. According to Bond Brand Loyalty, the average consumer participates in approximately 14 loyalty programs but uses less than half of them on a regular basis. At my agency, one of the most common tasks is to find new and better methods for businesses to communicate with customers. Let's take a look at three ways customer loyalty programs can improve the customer experience and grow a more active customer base that spends more and buys more frequently. Personalization and Customer Journey Customer loyalty programs are an effective way to use relevant data to personalize the customer experience. Consider this: You already have your customers' information and preferences, and they are motivated to offer you with more information if it can be turned into actual rewards that can be linked to your loyalty program. Consumers respond positively to personalization. In fact, research shows that a consumer is eight times more likely to be satisfied with a customer loyalty program if they are extremely pleased with how individualized it is to them.

There are several fascinating ways that businesses are utilizing personalization to improve the customer experience.

For example, Sephora's Beauty Insider reward program maintains eye color and skin tone information, as well as other preferences, allowing it to quickly create targeted product recommendations. This significantly improves the company's capacity to provide customers with relevant information and offers. Even if your consumers don't provide you with as much information as Sephora's customers, you may still make a significant influence on offering relevant content and offers by tracking order history, current service subscriptions, and customer locations. Demonstrating that you understand your clients' particular habits and demands can help your loyalty program succeed. Make the customer experience easier. Another advantage of an effective customer loyalty program is that it simplifies the purchasing process. Because loyalty programs capture vital consumer information, storing payment information makes sense so that customers may make purchases and upgrades quickly. Nordstrom Rewards members, for example, may browse online and then pick up in-store, making shopping and purchasing more convenient. Starbucks' app allows users to order drinks ahead of time while collecting and redeeming points in real time. This is an excellent perk for frequent Starbucks customers who do not have time to stand in large lines for a cup of coffee. Because member information is already stored, there are fewer hurdles to completing a seamless transaction. You can incorporate this into your own customer experience in simple ways, such as auto-populating shipping or billing information, offering multiple ordering methods (via mobile, desktop, or even social media), and remembering what a customer previously ordered so they can easily add it to their shopping cart.

Creating customer delight.

Finally, one important aspect of customer loyalty is discovering ways to engage and please customers. In a competitive market, having good customer satisfaction isn't enough; you also need to make them delighted and eager to tell others about you. Customer loyalty programs have the potential to accomplish so if done correctly. Marriott Rewards members, for example, can check in online and utilize the mobile app as a room key. It may appear to be a minor detail, but conveniences like these can be the difference between customer happiness and customer delight. Amazon Prime is an excellent example for several reasons. Amazon has devised a program that makes it easy to pay for and receive items from the corporation by offering free shipping, as well as livestreaming of TV series, movies, and music -- and customers are prepared to pay more to be a part of this program and obtain these benefits. You can promote customer delight using comparable approaches. Pay attention to the devices and channels that your clients prefer when making purchases or contacting you. Don't be hesitant to try something new and see what works. With so much competition, firms need to find a way to stand out while also fitting into their customers' lifestyles. Customer loyalty programs can help firms differentiate themselves from the competition while building a loyal customer base. Using the proper methods while developing your program can result in a verifiable, substantial return on sales and retention.