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29 March 2024

Deliver what customers want, when they want it, and of course, at the right price

Published
By Sanjit Gill

The ultimate goal of any successful loyalty programme is to increase ‘share of wallet’, nurture and retain profitable customers.

Before embarking on the journey of launching a new loyalty programme for your business, a number of critical success factors must be considered to ensure your programme delivers the ‘best in class’ and can compete in an ever changing loyalty marketing landscape.

Whilst a company’s business objectives may be seen as the key driver to launch a loyalty programme, equally the consumer proposition and perception of the programme plays a vital role – it’s all about getting the right balance. In today’s competitive landscape maintaining a customer- centric focus is the singular key to success – put very simply, this means delivering what customers want, when they want it, and of course, at the right price point.

A recent study commissioned by ICLP surveyed consumers across a number of global markets including UAE and KSA, to better understand what consumers expect from brands they are loyal to and to quantify how brands are delivering against those expectations.  On average customers were part of and active in at least 2-3 programmes with trust, value for money, quality and customer service seen as the most influencing factors to drive loyalty (5.8 out of 7).

Many brands have mastered the art of ‘discounting’ as a means to driving sales and whilst this may satisfy consumers in terms of value for money, we believe it should only be used as a short term tactic and not the sole means of driving true loyalty. Smarter ways can be adopted via data insights which offer consumers targeted, relevant and timely offers and can equally achieve the same results without diluting profits and deliver a more rewarding experience leading to true advocacy towards your brand. Research showed that more than 35 per cent of Middle East consumers are willing to pay a premium for products/services they are loyal to.

‘Knowing your customers’ is key to driving a truly engaging relationship which in turn builds trust, and willingness of your customers to share more personal data about themselves, which in turn can result in a far better experience. Personalisation and consumer profiling create a sense of ‘belonging’ and shows your customers that they are an individual and you understand their needs and preferences. This was evident in the research findings, where consumers rated mobile redemption, instant and flexible rewards, and more tailored and personalised communications as the things that matter most to them.

Technology advancements have played a major role in recent years making the whole engagement process much easier and interactive for members of loyalty programmes. Although, technology itself doesn’t create any value for consumers, it provides portals into the wonderous worlds of interactive content, social sharing and brand dialogue which captures consumer attention. Whilst Smart Phones and Tablets have dominated this space in recent times, tomorrow is about ‘wearables’ as shown by Nike’s Fuel Band and Google’s Android Wear ecosystem.

So what does this mean for businesses and loyalty marketeers? Well it boils down to the use of technology to deliver a seamless customer experience which connects them to your brand via a multi-channel approach. Knowing your customer status, needs and preferences in near real-time across different channels requires a connected technology ecosystem, able to both collect transactions, offer redemptions, as well as and any type of trackable interaction against a customer profile. The ability to determine the most relevant information and use these inputs intelligently will not only improve the customer experience at the most impactful touchpoints, but also create more profitable customer relationships.

Note: The author is the General Manager of ICLP and the views expressed in the article are his own. Emirates 24|7 urges readers to do due diligence before acting on the contents of this article.

(Home page image courtesy Shutterstock)