The secret to creating brand loyalty is delivering personalized experiences that cater to each customer’s unique needs. Most brands in Singapore are investing in intelligent Loyalty solutions that help them provide hyper-personalized customer experiences.
The loyalty solutions capture customer data from various sources and provide valuable information such as a complete understanding of customer’s behaviors, preferences, and journeys.
Let’s look into what these personalized Loyalty programs are, and how can you implement these for your business.
What are Personalised Loyalty Programs?
Personalized loyalty programs are loyalty programs that are tailored to meet the unique needs and preferences of individual customers. These programs use customer data to offer personalized rewards, incentives, and experiences that are designed to increase customer engagement and loyalty.
The basic idea behind a personalized loyalty program is to create a program that recognizes and rewards each customer as an individual, rather than treating all customers the same. This means that the program may offer different rewards and incentives to different customers based on their purchase history, preferences, and behavior.
Personalized loyalty programs can help businesses to build stronger relationships with their customers, increase customer retention and repeat purchases, and improve overall customer satisfaction. By tailoring rewards and incentives to individual customers, businesses can make their loyalty programs more meaningful and engaging, which can ultimately drive long-term customer loyalty and revenue growth.
Why do businesses need Personalised Loyalty Programs in 2023?
Most brands today offer discounts and promotions to attract and retain customers. With the ever-growing competition and an infinite number of offers, customers may no longer be loyal to any specific brand. They shift from one brand to another for better benefits. In this scenario, how can brands retain their loyal customers?
The only sustainable way to keep the customers loyal is to give them personalized experiences. A customer will stay loyal to your brand if he/she feels connected on a more personal level. If the customer feels that you as a brand know them, understand their preferences, and will only offer them products or services that they need.
How to give these personalised experiences to the customers?
These are 3 ways your brand can give personalised experiences to the customers:
1. Personalize Rewards
According to a report by Epsilon, 80% of consumers are more likely to do business with a company if it offers personalized experiences.
When customers receive rewards that are unique and personalized to them, they feel special and differentiated from everyone else. They would stay connected to earn more and more rewards and benefits that are useful to them.
For example, You can have different membership tiers in your loyalty program, catered to different members. Low spenders can be enrolled under Silver membership, regular spenders would be Gold members, and high spenders would be Platinum members. Platinum members get to earn more points per dollar spent than Gold and Silver. They also get other perks, such as, say no delivery/shipping cost, cutting the queue during booking party space, etc.
High spenders bring in the most recurring revenue for the business. Imagine, if there are common rewards for all, it may not be rewarding enough for the high spenders. As a result, they will not connect strongly with the brands anymore, and will eventually shift to other brands for higher recognition.
Personalized rewards will keep all the 3 tiers engaged with the right messages and offers based on their needs.
2. Consumer connect
Once you have personalized rewards in place, you have kickstarted the relationship with your consumers. By offering rewards that are tailored to each individual, you show that you have taken the time to learn about their preferences and are committed to meeting their specific needs. When customers feel that they are being rewarded in a meaningful way, they are more likely to engage with your brand and become loyal customers. Personalized rewards can create a sense of exclusivity and make customers feel valued, which can lead to increased loyalty and advocacy.
Hence, they help you establish a connection with your customers which further encourages customers to continue doing business with your company.
3. Relevant engagement
As your customers are now buying from you more often, this is an opportunity for the business to collect valuable data that can be used to further personalize their offerings. By tracking which rewards are most effective for different segments of customers, you can refine the campaigns to better meet the needs of their customers.
Example: For a women’s beauty salon, you can send only relevant notifications to each and every customer.
- Offer on regular Facial package: send to younger and elderly women who have spent less than $1000 in the last 6 months
- Offer on the anti-aging package: send to women of age group 30-50 years, who have spent more than $2000 in last 6 months
- Offer on Fillers & Botox: send to women of age group 40-55 years who have spent more than $5000 in the past 6 months
This relevant engagement not only increases the chances of high returning customers but will also reduce the spam messages received by a customer.