Customer Loyalty Programs - Happy Lock-in as the basis of loyalty
For years, the strategic and economic importance of customer loyalty and the loyalty of customers has been known - in both the analog and the digital world.
Typically, the goal of companies is to create a "lock-in" effect that leads customers to emotional, technical or monetary switching costs and thus tie them to an offer or provider. The examples for this are varied and range from simple stamp cards to complex ecosystems like PayBack.
We believe that these approaches neglect the customer’s perspective and the brand's perspective. A lock-in that de facto makes customers hostage (as with inkjet printers) can not be sustainable and gives away potential. In our opinion, it has to be about a "happy customer lock-in" in which he not only feels tangible benefits from customer retention measures but at the same time feels comfortable with the brand and the offer so that he likes to make that commitment.
Holistic approach to customer relationship management
In many cases, customer loyalty measures are tackled in isolation and, in addition, the actual value of incentives for customers is often overestimated. There are many customer loyalty programs where customers only partially or sometimes do not redeem the points and do not want to take part in actions such as "exclusive discounts" or "exclusive events".
The challenges for effective customer loyalty management (CRM) are the deep understanding of the audience segments and the designing of relevant customer journeys from start to finish. Where can the client be won for the program, how can their use / interaction be increased and how can they be tied up in the long run?
At the beginning, there is always the concept based on the customer understanding.
Personalized marketing and its advantages
The communication and offers of customer loyalty programs are tailored to individual customer needs and executed at the right place and at the right time. This effectively and efficiently ensures relevance and added value for the customer. Providing relevant offers to program members increases satisfaction and influences important marketing KPIs such as increased purchase frequency, cross- and up-sales, the willingness to recommend and long-term commitment to the company.
Customer retention with Batten & Company - evaluate, design, implement or optimize
Customer loyalty programs are designed to support the overall goals of a company. Depending on the company’s situation, questions might be (e.g.):
- How should we set up a holistic customer loyalty program to achieve our goals?
- Should we introduce our own customer loyalty program or should we join a multi-partner program?
- What value does our current customer loyalty program create?
- How can we optimize our existing loyalty program?
- How do I get more customers to register?
- Which individual program-related added values are suitable for which customer segment?
With many years of experience in customer relationship management, we are happy to assist you in answering your individual questions. We support you in the identification and assessment of your individual goals, the preparation and evaluation of possible program options as well as the project planning, coordination and final implementation.
Are you interested in a dialogue with our loyalty program experts? Then do not hesitate to contact us.