Customer Relationship Management (CRM) and loyalty programmes go hand in hand in a number of industries.
A CRM system that holds all customer data and uses reliable analytic software is a significant help to your business in identifying your customers’ behaviours and habits. This knowledge will make it easy for you to reward your customers appropriately for their loyalty. Rewards lead to customer retention and encourage potential customers to try your products or services.
About CRM and Loyalty Schemes
Loyalty schemes can dramatically strengthen relationships between businesses and their customers. Getting rewarded for purchasing your goods or services will not only encourage your customers to keep using your business, but will also make them feel more valued, even more so if the rewards are personalised.
This is where CRM comes in. With a CRM system in place, you can track individual customers’ transactions and analyse their preferences and spending habits. The system will then send them targeted communications and offers based on this analysis. Your customers are more likely to take up offers that cater to their preferences, instead of just ignoring them.
Tesco Clubcard and Boots Advantage Card are two great examples of loyalty schemes that provide unique, tailored offers to their customers. Apart from allowing customers to exchange points earned from previous purchases for new goods, these two schemes also regularly send out communications containing discounts and incentives based on what each customer buys frequently.
CRM software also generates data that can help you track your return on investment and manage customer service interactions, which you can use to improve your business operations and create a smoother, more efficient way of working.
Effective CRM & Loyalty Schemes
CRM and loyalty programmes are designed to ultimately help businesses keep their clients and entice new ones to their services which, in the long run, will help increase their profits. However, improving the customer experience should be at the forefront of any decision made when designing a loyalty scheme programme.
Listening to what your customers want and need is important, and will help you understand them better and make them feel more valued.
Loyal customers are more likely to spend than random, sporadic ones, which is why it is important to reward them effectively. Customers who are rewarded appropriately for their loyalty are less likely to be swayed by your competitors to switch to them. These customers will also promote your services to their friends and families, thus creating new customers for your business. However, incentives and rewards offered with loyalty schemes have to be cost effective for your business. Recovering costs quickly is crucial to safeguarding your business against losses.
Having a loyalty scheme with attainable rewards is also important, which is why air mile schemes work well, as they allow customers to be flexible with what they spend their miles on, whilst ensuring that they can easily understand the reward system.
You can also use the information that you gain from how your customers use their rewards to gain a better insight into their preferences. This is a great tool for determining which products you should promote and expand.
Using CRM and loyalty programmes can really help boost your business and improve your relationship with your customers, making them feel valuable for using your services and allowing you to interact with them on a deeper level. Happy customers are also more likely to spread the word about your business, and are a significant factor in the growth of your business.
Find the ideal CRM and loyalty programme solutions for your business by filling out the form at the top of t e page and letting Expert Market UK search for the best solutions for you and get you on your way to building better, longer lasting relationships with your customers.