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Customer Loyalty Programs

Five Tips for Success
Wednesday, July 25, 2018

Customer Loyalty

Do Loyalty Programs Help to Retain Customers?

Customer loyalty programs have been around for quite some time in various forms. One recent study found that 87% of customers agree that, with a customer loyalty program, they are more likely to purchase from the same company again and again.

Loyalty programs are not just beneficial for the customer but they also provide businesses with a lot of data for optimizing their marketing campaigns.

Five Tips For a Successful Customer Loyalty Program

One of the main challenges that businesses face today is the sheer number of choices a consumer has in this digital age.

Customers now have the power to purchase any product from anywhere in the world. If the customer likes the product and gives feedback openly, it is a promotion for the company.

If the customer, however, dislikes the product, they make it known to everyone and the word spreads like wildfire.

Given this importance of customer loyalty programs, here are five tips for implementing successful ones:

1. Target Customers

The most successful customer loyalty programs are those that are targeted at specific segments of customers, as opposed to a generic loyalty program. By focusing the program to tailor to specific segment wants and needs, you wind up with customers that feel special. This helps to build strong relationships with your brand.

2. Offer Unique Rewards

Loyalty programs with unique rewards work very well to retain existing customers, as well as attract new ones. The reward may be some kind of gift or a discount program, but digital rewards are becoming the most effective option. Digital rewards are more popular in online customer loyalty programs.

3. Give Customers Rewards Without Spending

Many loyalty programs are always targeted at customers after they purchase something, and this should not always be the case. If you offer your customers rewards without them having to spend every single time, you are more likely to see an increase in future spending from those people.

For example, offering referral programs, such as free gift cards if a customer refers five people, will work better to increase customer loyalty. This way, you’re having your happy customers do the promotional work for you in exchange for something they want — all without requiring them to spend.

4. Stay Connected With Your Loyal Customers

Regular and open communication with your loyal customers is extremely important. This can be done through emails or instant messaging. For example, when your company is offering a discount, the regular customers will be notified through emails so that they may get the benefit. You can also tailor the content to meet the needs of your customers, and use data you’ve collected from your loyalty programs to offer them tailored offerings.

5. Collaborate With Other Companies

This is another great idea for a successful customer loyalty program. Brands that compliment one another can work together to offer benefits to their loyal customers in unison, and offer them something truly unique through their strategic partnerships.

If you’re going to invest in creating a customer loyalty program that actually works, it’s important you do it the right way. Here at Online Rewards, we’ve got you covered. Contact us today and see how we can help create and implement a customer loyalty program that will grow your business.

The Differences Between B2C & B2B Loyalty Programs

…Subtle and Not-so-subtle
Thursday, July 19, 2018

Customer Loyalty

B2B and B2C are the two main ways that businesses need to sell and market their products or services.

A business can be both B2B and B2C. For example, Amazon and Apple act as B2B and B2C at the same time because the customers buy from them for their personal use as well as for their companies at a large scale. Furthermore, many B2C companies nowadays are building strategies to break into B2B markets.

What are B2B Customer Loyalty Programs?

B2B stands for business to business and is defined as the process of selling products to other businesses. B2B customer loyalty programs are quite complicated as they are concerned with the retention of other businesses. B2B loyalty programs are more valuable in getting direct benefits that accrue from the loyalty of the business.

What are B2C Customer Loyalty Programs?

B2C stands for business to consumer and is defined as the process of selling products to customers directly. B2C loyalty programs are very effective to engage, enhance, reward, and retain the customers as well as grow a large customer base. Business-to-consumer markets work more on emotions. People are more interested in the benefits of the product and want the marketers to tell how their product or services will help them derive benefits personally. B2C loyalty programs have emotional commercials, billboard campaigns and so on, all in a bid to get the attention of the customers.

The Main Difference Between B2C and B2B Customer Loyalty Programs

Although B2B and B2C loyalty programs have the same goal of retaining customers and ensuring their loyalty, there are some distinct differences:

  • B2B loyalty programs tend to be on a smaller scale while B2C loyalty programs deal with larger numbers.
  • In B2B, the decision of purchasing is often made by a group or committee, and purchases are larger both in cost and number as an entire group of people will use the product. This is not the case in B2C as the consumer will make their own decision to buy a product, and will only use it themselves. It is harder to have an impact on a group or committee than it is on a single individual.
  • In a B2B loyalty program, the decisions are based on economics, as purchases are designed to do things like make a business more competitive, help the employees to interact and communicate better, upgrade hardware, and so on. However, in B2C, the decisions are often made emotionally and based on how a product or brand makes a personal feel.
  • A B2B loyalty program requires additional communication with recipients when compared to B2C loyalty programs.
  • Transactions are faster in a B2C loyalty program (as opposed to B2B) which usually take a longer amount of time.
  • In B2B loyalty programs, the companies have to develop strong relationships with the smaller companies to generate opportunities, while in B2C loyalty programs, it is not uncommon for the sellers to have hundreds or thousands of potential customers.

Implementing a B2B customer loyalty program is no easy task. It’s not as easy as swiping a grocery store rewards card, but when executed properly, can have a massive impact on your business. In spite of the challenges, a B2B loyal program can have a better positive impact on your business — much more so than a B2C customer loyalty program. Online Rewards is here to guide you all the way. Contact us today to see how we can help you retain more customers.


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