Loyalty Blogs

Customer Experience (CX) plays a huge role in winning customers’ hearts and making them stick to your brand. Improving customer experience with a personalized approach enables customers to make them feel valued and understood. Research by Insider Intelligence states that 88% of shoppers feel the experience the brand provides is equally important as their products and offerings.

Having a good loyalty program is not a choice anymore but an essential part of businesses across industry verticals to help retain customers for a long time. In this blog, we will learn how you can build Customer Loyalty Software Solutions that focus on enhancing customer experience goals for higher business growth.

Ways That Show How Loyalty Can Drive a Better Customer Experience

Loyalty is the key that gives your brands the ability to enhance customer experience while using customer data to unlock several benefits and growth opportunities. Research conducted by McKinsey & Company shows that many experience-led growth leaders invest in new experiences and offerings where loyalty data plays a great role in ensuring that brands invest in ways to bring bigger impact and growth.

A good SaaS loyalty platform can enable brands to uncover new growth opportunities with enhanced customer experiences using loyalty data. If you are wondering how loyalty can be used to attain your customer experience goals, you must check out this section.

We have shortlisted some of the best ways where loyalty helps brands to achieve their customer experience goals-

– Understand Customers Better

Successful brands and growth leaders are the ones who are more likely to know their customers personally, as stated by McKinsey & Company. One of the most effective ways to know what your customers value is to ask them what they feel about your services. There is no better way than using a loyalty program to know them through ongoing loyalty conversations.

Additionally, you are collecting consistent accurate zero and first-party data with customers’ consent. Loyalty programs not only help in creating endless opportunities to engage with your customers but also help in collecting unique customer data that can enable brands to keep up with ever-changing customer needs and preferences over time. Some ways to collect zero and first-party data through loyalty programs are product recommendations, program & newsletter signups, members communities, apps, surveys & more.

– Act on Customer Data in Real Time

Brands that can recognize and use emotional customer data at scale are the ones that have unlocked several growth opportunities, as stated by Deloitte. By making use of a loyalty program, you can directly ask your customers what they value and prefer the most, which can be a great help to customize their experiences based on the details shared by them.

Ensure that you invest in modern and innovative loyalty programs that hold the expertise to create customer segments based on any combination of program member attributes. The more granular your customer segments are, the more relevant and meaningful rewards and offers will be. Your marketing team can focus on reviewing what campaigns work best and what doesn’t, giving them a chance to improve and modify anytime.

– Boost Customer Engagement

Keeping your customers engaged continuously is essential to make them Steve with your brands in the long run. You can combine loyalty data with the opportunities that your loyalty program offers to deliver relevant and value-driven personalized engagement.

You can make use of several engagement options such as social loyalty, gamification techniques, referral programs, ratings and reviews, etc., which can make your customer experiences more fun and rewarding. Consider incentivizing your customers just for their participation because every interaction leads to more customer data, which can be used to deliver more personalized and relevant experiences.

– Go Beyond Transactions to Add Value

Customers today expect something valuable apart from the transactional relationship with the brands. Make sure that your loyalty program can add value beyond normal purchases to create lasting emotional bonds. Many brands have already expanded their traditional loyalty program approach based on buy things & get points and have included non-transactional values and rewards.

Loyalty expert, Adam Posner, The Point of Loyalty CEO talks about the “Collection of Six Currencies” which every loyalty program member cares about-

1. Financial currency = Showcasing the money 

2. Experiential currency = Adding magical moments to life

3. Utility or functional currency = Making customers’ life easier 

4. Personal currency = Making customers feel valued & special (inclusivity)  

5. Choice currency = Giving control over customers’ experience 

6. Social or community currency = Help become a part of something and belong 

Understanding your customers and what is important for them can help to add non-transactional value with loyalty. For that, you can measure your customers’ share of life rather than just wallet share. This will help in making your customers get relevant value over transactions through ways like convenience, exclusivity, partnerships, and subscriptions.

– Seamless Omnichannel Experience

Making use of the right loyalty platform is a must to help your brands connect the dots between all customer-facing efforts. This will help to recognize and reward your customers consistently in a valuable and meaningful way.

Additionally, you must ensure that you allow your customer to redeem their rewards through any channel irrespective of where they engage our shop – whether it’s e-commerce website, mobile app, email, or in-store.

– Achieve Higher Growth

Forbes says the loyalty programs can help in increasing frequency and spending per visit or winning back lost customers, which will help boost customer lifetime value by up to 30%.

By making use of the loyalty data, you will not only deliver better customer experiences across the entire journey but also help improve merchandising, operations, and more, which will boost your profits.

Final Takeaways

After going through the blog, we can see that a good experience can greatly help achieve customer loyalty, which increases the customers’ likelihood of doing repeat business with the brands. Customer experience and loyalty should always go hand in hand as both play a great role in gaining the attention of the customers and making them stay with you in the long run.

Ensure that you check out the top customer experience goals that you can achieve through loyalty offerings. Being a renowned Enterprise Loyalty Management Software, Novus enables startups and enterprises to build dedicated loyalty solutions that can help enhance the customer experience to a huge extent. Connect with our experts today to see how Novus loyalty solutions can help you boost your customer experience like never before.