When rewards and loyalty were new, brands mostly had cards to collect points and redeem them later. I remember as a kid collecting loyalty cards from various hotels, airlines, and clothing brands that my dad discarded when they expired or depleted. Cut to many years later when everything is digital, every loyalty point is accrued based on a mobile number or email address. From rewards to perks and bonus points, everything is digital and that has opened new windows for brands across the globe to create new waves in the loyalty and rewards sector.
From local grocers to designer brands, restaurants, fitness centers, malls, and every other sector, there is a loyalty program. The importance it holds in acquiring and retaining customers is so big that the annual spend for rewards and loyalty programs is as much as the marketing budget itself.
Direct selling businesses while enhancing their business empowering their customers are focusing on sharpening their loyalty skills to ensure that their customers are given experiences for a lifetime. This blog runs an analysis on the essential factors to be considered while knitting loyalty strategies for the year 2024.
Loyalty and customer experience
In an age where every person has their own vivid choices, there are brands that can cater to preferences and choices no matter how common or unusual it is. That said, customers are particular about what they are served with. The amount of personalization and customization that is made to cater to their needs and wants counts a 11 on 10.
In the realm of direct selling business and marketing, loyalty and customer experience are indeed two sides of a coin. Loyalty is born only when a customer experiences positive or satisfying instances with a brand. Not one, but many. Loyalty is a commitment or attachment that a customer has towards a specific brand, product, or service after having made a purchase, or availed a service. Again, this is not a one-time affair, but a sustained, repeated relationship between the customer and the brand.
Considering the fact that loyalty is built on positive experiences, brand reliability, trust, and overall satisfaction, creating a customer experience building a positive perception of the brand, its motto, and ethics throughout the customer’s journey with the brand is inevitable. But how is this customer experience or CX built in the direct selling landscape? Well, CX comprises every touch point that the customer has with the business right from the pre-purchase stage where the customer first gets to know about the brand to the purchase phase and post-purchase assistance. Customer loyalty is built only when a positive customer experience is built which involves various aspects such as the quality of the product sold, user-friendliness, customer service, brand communication, etc.
Direct selling brands have been winning customer hearts with this simple yet crucial aspect of business which is integral to the success and sustainability of the brand in the highly competitive market. Brands are in a constant race to deliver outstanding customer experience to cultivate loyal customers who will continue to choose the brand over any other at any given point of time.
Omnichannel loyalty programs
With digitality engulfing our lives, a brand cannot have two faces online and offline. Although product-specific policies and brand specifics are understandable when they vary online and in physical stores, you cannot deny loyalty advantages for your customers because they walked into your store or preferred to shop online. With an omnichannel approach, a customer gets to experience the benefits of the loyalty program across all channels like websites, in-store and mobile applications.
An omnichannel loyalty program allows customers to earn rewards across all channels which can improve customer loyalty and Customer Lifetime Value (CLTV). Briefly analyzing why is omnichannel loyalty program a necessity?
With an omnichannel loyalty program, it is easy for brands to deliver a seamless loyalty experience across all business touchpoints to create a remarkable customer journey.
When a successful omnichannel customer loyalty program is built, the impact it could create on the brand from getting people talk about the brand to building a lasting and trustworthy customer relationship is beyond what sales and revenue could do to a brand. Key points to consider while setting up an omnichannel loyalty program is that,
Ensure same level of service for customers across all channels no matter what medium they choose to interact with the brand .
Design instantaneous rewards, perks and bonuses associated with the program to encourage customers to make more purchases and stay longer with the brand.
| Benefits of omnichannel loyalty programs | |
|---|---|
| Incentivized data collection | Encourage customers to share their data. Incentive them instantly with rewards or bonuses for sharing their data while making a purchase. |
| Seamless customer experience | Build customer rapport slowly yet steadily with a series of interactions like linking every purchase reward to be automatically updated at check-out and sending push notifications about exclusive offers for valued customers. |
| Elevated brand awareness | Gamified online and offline experience where customers take part in various online or offline contests and win a substantial amount of loyalty points or even get upgraded to the next tier of benefits. |
Different types of experiential rewards to elevate loyalty experience
A customer dines at your restaurant and as a reward, you give them a $50 dollars discount, instead, when you offer them complimentary access to your poolside arrangement, it sure hits differently. While a discount also is a reward, it is short-term. Whereas the latter reward could instill a long-term effect giving your customer an unforgettable experience etching your name in their hearts forever. Experiential rewards can evoke emotions which speaks volumes than materialistic rewards. Also, it is value-oriented and not money-oriented. When you give your customer an experience of a lifetime, it evokes numerous emotions from happiness, commitment, awe, compassion, trust, interest, gratitude, pride, love and joy.
Rewards based on privileges
Pamper your customers with everything ‘exclusive and special’. Gift them a privileged feeling by giving them early access to your new range of products or priority check-ins like what the airlines do or a VVIP treatment like an upgrade. These privileges also must be limited or else when more people are considered special then the impact it could create will nearly be zero.
Unique community gathering
Building a community of your privileged customers where they come together to share their experiences with the brand. This could be any event like an exclusive product launch or a seasonal brunch or dinner. The sole intention is to get your members together and create new relationships, foster a harmonious community where potential brand advocates and influencers shall be born.
Tailored brand interactions
When the salon you always go to calls you up to experience a specialist service when their expert stylist is in town, it creates a powerful impression in the customer’s minds leaving a sense of pride and letting them boast on their social media handles. More than the cost factor that is involved in it, the value you could generate will be humongous.
There are more experience-based rewards like luxurious experiences, adventure-based experiences, etc, but all in all, the core idea is to deliver an exceptional experience or rather an experience of a lifetime with which the customers stay loyal and committed to the brand in the long run.
Key loyalty and rewards trends to elevate customer satisfaction in 2024
We are just a few weeks away from 2024 and businesses would already be prepping their charts for the annual budget. Direct selling businesses are definitely eyeing every opportunity to exceed customer expectations and pamper them rotten with choices one over the other. With the intensity of competition around, implementing loyalty programs and loyalty management is a priority for businesses to ensure growth and success.
Tailored rewards significant for individuals and individual groups
Introducing a loyalty program as an all-for-one, one-for-all is an age-old game. To effectively derive results out of a loyalty program, there definitely must be tailored rewards significant for individual customers and customer segments.
In the direct selling scenario, deriving data-driven insights to curate employee and customer reward programs has benefited businesses widely. Identifying what category of rewards motivates customers and distributors, and what can improve their engagement and productivity is the key to implementing a reward program that can yield better fidelity and devotion toward the brand.
Gamified recognitions
As much as it is important to build loyalty, it is essential to keep up the interaction and engagement throughout the brand journey. Gamified loyalty could be considered a program that can leverage maximum customer and distributor engagement through incentivized social engagements. Gamification can also boost digital engagement and social sharing through interactive leaderboards and incentivized participation.
Value-based loyalty programs
As we discussed in the experiential rewards section, strengthening emotional connections is the core of building customer loyalty. In that case, offering customers value-based rewards and experiences could create a win-win situation for the brand and the customers. This could ideally create customer relationships beyond business transactions, creating better opportunities to stay engaged with each other. Stay connected with the customer even when they are not making purchases by offering points for non-transactional activities as well. Offer practical suggestions like how to redeem or claim points and recognize your customers every time they come back to you whether they purchase it or not. Subscription-based loyalty programs also are a great way to deliver value to subscribers and help brands predict revenue.
Transition from discounts
Discounting is an age-old loyalty method. Instead, incentivize your customers with a reward. No matter if it is small or big, rewards and perks are considered more supreme than discounts because people are keen to know how valuable they are to you. So, it is the brand’s duty to recognize their loyalty and pay them accordingly.
Tiered loyalty programs
Loyalty programs are not a one-time affair to get done with. When customers are kept curious, they would want to explore more with the brand. The tiered loyalty program is an exemplary example to keep the customers encouraged to shop more to help them unlock surprise rewards as they move up the loyalty charts. From basic rewards to top-tier, it is easy to keep customers inquisitive to identify what the next level of rewards could be.
Paid loyalty programs
Customers who have previously interacted with a brand will be confident to invest in a brand given the positive past experiences. They will be willing to make a payment upfront to have access to exclusive benefits and premium experiences. This could not only foster emotional connection but also strengthen customer loyalty.
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Remolding the direct selling future with loyalty programs
While being on a constant mission to serve customers with everything out of the box and exceptional, direct selling businesses are refining their loyalty and rewards strategy to ensure that the best out of them are put to use to enhance business and improve brand credibility.
Let us quickly analyze how loyalty programs can create a fundamental difference in the overall operations of a direct selling business.
When a customer is treated well, the possibilities of them coming back are huge. With loyalty programs, repeat businesses can be encouraged by rewarding customers at regular intervals. This in turn can maximize customer retention, and build brand affinity and commitment as well in due course.
With improved customer retention, CLTV or Customer Lifetime Value is sure to rise. Direct selling businesses offer exclusive rewards, discounts, and access to special promotions through a loyalty program to improve CLTV and thus increase customer profitability in the long run.
Or word-of-mouth marketing where customers who have had positive or satisfied experiences with the brand and its loyalty programs share their positive experience among their family, friends, and colleagues actively or passively becoming the brand advocates driving more leads into the business.
When you have a satisfied customer base, it is easier to encourage them to explore new products and services in your business. These cross-selling and upselling opportunities are an ideal way to increase ARPU (Average Revenue Per User).
When you have a loyal customer, the communication between the brand and the customer is transparent and open. It could help gather feedback, complaints, concerns, and suggestions for product improvement and development as well.
When like-minded individuals come together, there is a sense of community that is created. Loyalty programs can foster communities which serve as a powerful asset for direct selling brands to build a network of engaged and loyal customers.
With a loyalty program that is efficient and effective, direct selling businesses can test and adapt to new marketing strategies successfully. Businesses can refine their operations and approaches by monitoring customer responses to different rewards, bonuses and other incentives.
Ahead of competitions
As much as there is competition in every sector of the direct selling business, brands are in a constant race to enhance their loyalty programs to deliver a new shopping and brand experience for their customers. A well-executed loyalty program can transfigure the dynamics of direct selling businesses by nurturing lasting relationships, increasing CLTV, ARPU and thus providing a competitive edge in the market.
In the changing direct selling landscape, a loyalty and rewards program can build a strong and loyal customer base from scratch towering up with utmost authenticity and credibility.
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