(Webinar) The Power of Customer Loyalty

The Power of Customer Loyalty

A single human generates 1.7 Mb of data every day, and 95% of businesses rely on this data to target customers for various purposes. No doubt, data-driven loyalty programs are a hit in this digital age.

Unlike before, businesses now have multiple channels to extract customer data such as social media, emails, apps, websites, etc. It gives them a chance to build customer loyalty by connecting on a one-to-one level with customers. Many popular brands have shown the power of leveraging data in building customer loyalty. Netflix is saving 1 billion dollars per year by integrating data for customer retention strategies. Hence, data plays a vital role in building customer loyalty over time.

In our #FroogalforGrowth Series by Froogal University, we are in conversation with Rahul Vasu, the Head of loyalty, Analytics, and CRM at Reliance Industries Limited. He shares the importance of customer data for any business and how it impacts a customer loyalty program.

Rahul Vasu has almost two decades of experience in customer Loyalty, Analytics, Customer Experience & CRM. He is working across industry verticals like Hospitality, Consulting, E-commerce & Retail with organizations like PAYBACK India, Flipkart Internet & Future Group.

Let’s discuss more on the value of data in building Customer loyalty:

The definition of data has changed over a decade

Acquiring customer data in early 2000 was a long process, and it was only the names and numbers of customers. In the presence of virtual platforms, data collection has become simpler as more and more people are using cellphones, desktops, and laptops daily. It generates a lot of data every day. A golden opportunity for businesses to collect data using these channels to track customer behavior and reach out to them at the right time.

Study shows that 60% of businesses use real-time customer analytics to improve customer experience across touchpoints and devices. Amazon UPI payment is the best example of real-time data, offering a quick mode of payment to the customers and also helps in data collection related to the purchase. Real-time data allows businesses to understand customer behavior and plan a better customer experience in the long run.

A loyalty program should make sense out of brand Ecosystem

Small-level businesses can benefit a lot from a loyalty program. They just need to be clear about what exactly they want from a loyalty program. The idea behind introducing a loyalty program was different in the early 2000 for businesses. The loyalty programs were focused on acquiring data. Today, it is all about offering a great customer experience by building meaningful relationships. With multiple options for data collection, businesses can wow customers in many ways while focusing on brand loyalty.

Create a personalized communication with customers using data

80% of customers expect personalized experiences from their fav. brands. It is great news for the brands.

By integrating data in customer retention programs, businesses can communicate with customers in a personalized way using different modes such as SMS, notifications, emails, social media, etc. Businesses should focus on communicating in a way that excites customers.

For creating personalized communication, brands should also give new information to the customers every time they send a message. Nobody wants to know what they already know. For example, everybody knows about the season sale. What else is there in your message? New information excites customers every time they see the message. Customers want to know ‘What’s in it for me? Keep this point in mind while creating messages. Know your customers, and let your customers know that you know.

Data-driven loyalty program for a customer experience

Data is an important tool for businesses. It can give valuable insights about customers such as What are they buying? How many times do they visit a store? and how much time they are spending? You can then break down this data to target a specific group of customers. For example, a housewife might go shopping on weekdays, you can target this segment of customers on weekdays, whereas this is not the case with a working woman, for this segment weekends are best. Rahul Vasu points out the need for having a separate process for studying women’s purchasing behaviors, especially in the retail industry. So that businesses can communicate better with customers.

Focus on Emotional Equity to build loyalty

According to a study, consumers with a strong emotional connection with retailers will prefer to visit these stores 32% more often and spend 46% more money than brands that fail to build an emotional connection.

These findings show that emotional equity is very powerful for businesses. It is emotions that encourage a customer to stick to a particular brand. Whether they are concerned about financial issues, or a long-term commitment to a brand, emotions are always involved. This is one of the reasons businesses should focus on building emotional equity.

A few brands did it – Shopper stop succeeded in connecting emotionally with customers years ago with its loyalty program. Jet Airways set a good example in providing a unique CX that made people pay a premium to travel. Kingfisher was a league ahead in customer loyalty, bringing luxury into an aircraft.

Hence, businesses should focus on building emotional equity to encourage customers to stay committed to the brand.

Transform the way Customers Shop

Of course, customers want to shop smartly. Give them new avenues to shop. Keeping this in mind, brands should try to transform the shopping experience by introducing new mediums such as a user-friendly mobile app.

For example, Flipkart was just an online book store- introduced a new concept in India where customers can buy books online without needing to visit a physical store. That changed the customer perspective towards online book stores. Later, Flipkart started selling electronics and acquired Myntra later. It shows how brands can become successful by offering new methods of shopping to customers while earning customer loyalty.

Measuring the success of loyalty program

If your customers are making efforts to remember your loyalty program, whether it is redeeming points or anything else, your loyalty program is a success. It means they feel the value of your loyalty program. So keep tracking how your customers are engaging with your brand and how they are responding for measuring the success. You can use a CRM system for real-time tracking of customers and feedback management.

Data-driven customer loyalty is the need of the hour. With changing behaviors of customers, businesses and markets need to think innovatively to reach out and effectively communicate with customers.

To Wrap Up

Customer data is the key to building a great CX. Businesses can connect with customers in a personalized way by understanding them better. Not only data-driven strategy helps retain customers, but it also equips businesses to strengthen relationships with the best customers.

That’s it for the webinar.

If you have any questions regarding customer loyalty and experience you can talk to one of our experts at Froogal today (best customer loyalty companies) or write to us at [email protected]

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