Are Your Loyalty Programs doing what they’re Supposed to Do?

The theoretical logic behind the application of loyalty programs is to motivate customers to stay dedicated to the retail businesses. However, for most business enterprises, it does not necessarily turn out that way. They struggle in the creation of unique and relevant programs to promote their brand and in building brand affinity, particularly due to the lack of insights on the customers’ buying patterns. Despite having multiple loyalty programs in place, they fail to convert one-time buyers into repeat purchasers. According to a SAS Insights study, the effectiveness of loyalty programs is only marginal – 6.5 out of 10. It might be right to infer that an increase in the number of loyalty programs is in some way creating unintended consequences for the retail businesses.

The retailers aiming to create a unified consumer experience need to focus on leveraging the overall experience of customers across all channels before utilizing/ implementing loyalty solutions in consumer retention activities. However, for most retail businesses, consumer data resides in segregated and isolated sales, marketing and support silos, making it difficult to generate a holistic view of the customer, thereby failing to present a unified experience. The application of big data analytics solutions

Customers: The Last Word

 

Customers play a vital role in the rise or fall of a business venture. The customer experience offered by a retail venture is what sets successful businesses apart from the rest. Studies reveal that it costs businesses about 6-7 times more to acquire a new consumer as compared to retaining an existing consumer. Additionally, companies that prioritize consumer experiences reportedly register 60% more in profits. The consumer does get to have the last word! Why do we say so? This is because a company’s 20 percent loyal consumers are responsible for being the contributors to 80% of the company’s revenues.

At the turn of the decade, as the world witnessed the emergence of smartphones and with more than 6 billion units sold today, retail enterprises have the task of retaining their existing consumers while they acquire new ones. The customer loyalty solutions are the result of a highly novel and intelligent marketing strategy adopted by the business enterprises to connect more with their customers.

Collaborating with Technology Outsourcing Partners

Advancement as well as the availability of a multitude of technologies has led to the growth of a multitude of technology outsourcing partners in different parts of the world. These technology outsourcing partners specialize in different fields of application and product development using different technologies. An individual or a company, to be precise a retail business, can easily consult these outsourcing partners regarding technology and related matters.

These outsourcing partners develop not only highly effective web or mobile applications, but they also offer their services in designing loyalty programs for customers visiting their retail business associates. Some benefits of collaborating with these technology outsourcing partners in developing loyalty programs for customers are enlisted below:

• The client is not required to set-up dedicated hardware or software on their premises. 
• They can easily migrate from their existing programs towards the new infrastructure and architecture. 
• Secure data centers.

Usually, these partner companies build a scalable and flexible loyalty program for customers that can be customized depending on type of benefits to be rewarded to their visitors.

Clavax Technologies is one of the many technology outsourcing partners in California offering effective technology solutions and services to all forms of client queries. The company has a team of developers working on multiple technologies and platforms for the clients have a highly varied operations base. Their expertise in technology and a far-sighted approach to project development goes a long way into determining the success of a web or a mobile application.