By Ezra Luca
Goal
The goal of Customer loyalty programs is to create a friendly atmosphere towards the customer and help them gain an interest in the company, which ultimately leads to regular purchases.
It’s important to win customers’ loyalty at every stage of their interaction with the brand. Even though a person has already made a purchase, they can change their mind sooner or later if they are not satisfied with other aspects of the service you provided.
Also, remember that it’s much easier to keep a current customer than win new ones – although modern technologies allow you to do so almost instantly (for example, with email marketing).
The structure
Loyalty programs Singapore is usually structured as follows: participation in this promotion is free for all existing users/customers; by performing various tasks (purchases, participation in surveys, filling out forms, and other actions), users gain points or virtual coins which can be exchanged for various discounts (10%, 25%, etc.) on products as well as gifts.
Thus, a loyalty program gives your business a competitive advantage by increasing the chances of retaining customers; also, it’s an effective marketing instrument thanks to the possibility of personalization.
Formats and benefits
Loyalty programs come in a wide variety of formats and offer many different types of benefits; there are multi-tier programs with several levels and special privileges, often based on how much money has been spent. Sometimes rewards are given to customers based on the volume of purchases (for example, 1 point for every $1 spent), or they can be personalized to the customer’s needs.
Coin programs
Points/Coins programs are by far the most popular type of Customer loyalty programs. The user accumulates points every time a purchase is made and eventually uses them as discount coupons (which vary in value depending on how much money has been spent) or exchanges them for gifts, bonuses, etc.
In addition, some companies offer ‘bonus coins,’ which can be used at certain times only, such as seasonal sales – well-timed currency conversion saves you from losing customers because some people would stop purchasing if they don’t receive additional benefits.
On e-commerce websites, such Loyalty programs Singapore allow reaching more people via social media and increasing interaction between users (for example, in forums), which can significantly improve a company’s reputation.
Also, it has been proven that consumers care not only about price but also about customer service, so by using such applications, shops can show their level of professionalism to their potential.
In conclusion, a loyalty program is often an excellent choice for companies that want to encourage customers to become loyal and repeat purchasers in the long run.
