The rising popularity of online shopping has led to retail businesses revising their marketing plans and strategies. With more than a billion smart phone subscriptions worldwide, the retail companies are facing a tough time in staying connected with such a huge consumer base.
The result is that many of these retail companies are now moving their business online with the launch of their own e-commerce websites or mobile applications. Furthermore, these retailers are offering online Loyalty Programs for Customers, in addition to the offline benefits for their physical customers. But then again, simply having an e-commerce store for their products is not proving to be enough to increase their earnings. They also need to have engaging and customer-friendly marketing strategies in place to retain as well as acquire customers.
Some statistics from the world of e-commerce with respect to the statements above:
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A company loses about 10 – 30 percent of its customers, annually!
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While selling to new customers, companies have to shell out 6 times more than what is spent is selling to a regular customer.
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Repeat customers spend 33 percent more than a new customer.
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Around 63 percent loss of customers is due to poor customer service.
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Referrals among repeat customers is 107 percent more as compared to non-customers.
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A company's 80 percent profit is a result of the spending of 20 percent of its loyal customers.
The statistical data is an indicator to the benefits of having or not having a loyal customer base. The retail businesses have to spend 6 – 7 times more in acquiring a new customer than having to retain an existing customer. In such a scenario, it becomes quite essential for the businesses to have an effective customer retention strategy in place. The retail companies have loyalty programs for customers to offer some sort of rewards or benefits to their valuable customers. And to assist the retail businesses in their effort to offer rewards to their esteemed customers, they can hire any of the numerous mobile application development companies California to develop a customized loyalty programs for customers. The mobile application development companies California provide technology insights and market trends to these e-commerce businesses while creating a loyalty program for them.
An e-commerce business can create a wide variety of Loyalty Programs for Customers. Some of the most common and effective Loyalty Programs for Customers are listed as under:
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Exclusive benefits for a one-time fee:
Charging a minimal fee in lieu of offering a set of exclusive benefits to some of their highly valued customers is quite recommendable. This would elevate the customers to an elite group; a highly feasible program for businesses relying on repeat and frequent purchases.
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Tier-based growth benefits:
There is a difference between attainable and desirable rewards – a business has to understand the nuances of both programs before setting up one. A tier form of earning benefits can act as a suitable antidote to this problem most often faced by companies. The company can increase the value of rewards as the customer progresses up the ladder of benefits.
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The standard system:
This is the commonest form of any kind of Loyalty Programs for Customers that a business can come up with. The customer can earn a set of points depending of the transactions they make, which accumulate for the customer in points decided on some pre-determined conversion rates.
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Offering rewards in kind:
A bit outside the standard norm, but offering non-cash or “in kind” rewards are still a feasible option. The retail business can offer benefits other than cash rewards to their customers by simply carrying out some research on the customers buying behavior and their values.