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If you are a manufacturer or a business owner, then you should segment your customers and tailor different strategies to attract and retain different customer groups. “Why?” you ask. As per a recent stat, brands that segment their customers are 60% more likely to understand customers’ pain points and challenges and 130% more likely to know their intentions.

This blog post discusses some effective loyalty segmentation templates businesses should know in 2023 and how to attract and retain customer groups in each segment. Read on and thank us later.

What is Loyalty Segmentation?

The process of dividing customers into different groups or segments based on their tastes and preferences, behavior, and value to your business is known as loyalty segmentation. This enables brands to customize their loyalty programs and provide more tailored and meaningful rewards, incentives, and communications to each customer segment.

Loyalty Segment 1: Champions

Also known as premium big spenders, champions engage in high-value transactions and make huge purchases, which make them a major contributor to a brand’s revenue. True to their name, champions want exclusivity, highest level of quality, and best-in-class experience.

Loyalty Segment 2: B2B Customers

Business-to-business customers are business owners or senior-level professionals who buy products or services for their company. This customer segment is extremely particular about specific requirements such as customization options, bulk orders, or specialized services customized for their industry needs.

Loyalty Segment 3: Loyal Advocates

This customer segment not only makes repeat and regular purchases but also actively promotes your brand to others. They have a long history of engagement with your brand and contribute immensely to growth and success.

Loyalty Segment 4: High-Value Customers

High-value customers are excellent examples of the purchase history customer segment. This segment generates considerable revenue by purchasing consistently in huge quantities as well as sharing insights and providing feedback. High-value customers present huge opportunities for cross-selling and up selling.

Loyalty Segment 5: Customers with High Potential LTV

This customer segment is estimated to generate high lifetime value (LTV) for your brand. Some of the traits these customers exhibit are they typically have a robust history of loyalty with other brands, they make high-volume transactions, and they show consistent buying behavior.

Loyalty Segment 6: Brand Lovers

This customer segment exhibits staunch loyalty and affinity towards a particular brand and connects with it on a deeper level. You will see them waiting in long lines for hours at a stretch to get the new iPhone. You will find them wearing their favorite automobile brand’s apparel (say a Harley-Davidson jacket or a Ferrari cap). You will also find them to be an active member of a brand’s online community.

Loyalty Segment 7: Occasional Customers

As the name suggests, this customer segment doesn’t have any brand commitment and makes infrequent purchases based on their needs. These customers also buy from a brand during clearance sales or to try out some newly-launched products. Even though many of them have the potential to be a loyal customer, they maintain their sporadic transactions with a brand.

Loyalty Segment 8: Gift Seekers

This customer segment transacts with a brand mainly to buy gifts for others. An excellent example of such a brand is Kansas City-based Hallmark Cards, which is one of the oldest and biggest manufacturers of greeting cards in the world. Another great example of such a company is British multinational toy and gift brand Hamleys which majorly deals with gift seekers.

Loyalty Segment 9: Product Category Fans

Brands that offer a variety of product categories may find that some categories are extremely popular among a specific group of customers, who are known as product category fans. Nike is best known for its athletic shoes. But it also manufactures apparel, sporting goods, equipment, accessories, and more. Customers who are fans of Nike shoes are great examples of product category fans.

All said and done,

At LoyaltyXpert, we have helped many businesses with their loyalty programs. We tailor our loyalty solutions to fulfill the unique needs of all types and sizes of businesses. Contact us today to get a free demo!

The banking industry has witnessed a lot of change in the last few years due to the global pandemic, a series of lockdowns, the resulting supply chain crisis and economic slowdown, the Russia-Ukraine war, as well as the rise of automation and AI.

This is where well-designed bank loyalty programs can be extremely useful in retaining customers and minimizing customer attrition rates. Some loyalty programs that are suitable for other sectors may not be appropriate for banks and financial institutions due to regulatory, ethical, or practical reasons.

Every company that operates in the dynamic and rapidly growing industry—be it a public or a privately-owned bank, non-banking financial corporation (NBFC), or a fintech company—must leverage effective bank loyalty programs to their advantage.

What is a Bank Loyalty Program?

A bank loyalty program is a marketing strategy to encourage customer loyalty. It Offers rewards to valued customers as a way to acknowledge their ongoing business and interaction with the bank

Loyalty programs can help banks to improve customer relationships, understand customer needs, and offer personalized products and services.

Based on the information above, The rise of financial technology is putting pressure on traditional banks to innovate and improve their customer service in order to retain customers.

Top 5 Examples of Bank Loyalty Programs

1. Bank of America’s ‘Preferred Rewards program

Founded in San Francisco in 1998, Bank of America serves more than 66 million customers in over 4,300 branches across the U.S. The lender has a loyalty program christened ‘Preferred Rewards,’ which has three levels and members get attractive rewards as they climb their way up through the tiers.

Bank of America’s Premium Rewards provides its members with enhanced rewards and travel benefits in exchange for an annual fee of $95. The minimum credit limit for the loyalty program is $5,000 and some members have received higher credit limits to the tune of $50,000. The program offers a sign-up bonus of 60,000 online points (worth $600) after a member spends a minimum of $4,000 in the first 90 days of account opening.

2. Citibank’s Citi ThankYou Rewards

Citibank, which was founded as the City Bank of New York in 1812 and later renamed as First National City Bank of Europe, is one of the largest international financial services companies in the world. The bank has more than 100 million customers and 2,649 branches in 98 countries. In 2019, the bank registered revenue of USD 74 billion.

3. JP Morgan’s One Card

When it comes to banking loyalty programs how can the largest American bank by assets be left behind? New York-headquartered JP Morgan also has a points-based bank loyalty rewards program named ‘One Card.’

In the program, every reward point is equal to a dollar spent. The program requires customers to use a JP Morgan card to collect points and use it in a wide range of ways such as gift cards, travel cards, cash credit, and merchandise.

The loyalty program also provides big businesses with the option to reward their employees with points as well as reinvest the points into the business. Members can earn unlimited points and the points are extremely easy to manage and don’t expire.

The best part is, that members get 25,000 bonus points if they spend at least $50,000 within three months of account opening. The loyalty program is designed to minimize the risk of misuse of points and fraud. Real-time reporting makes it extremely easy to keep track of the points.

4. Wells Fargo Rewards 

San Francisco-based Wells Fargo is one of the leading banks in the U.S. with a customer base of 70 million, a market share of USD 97 billion, and a total asset of USD 1.97 trillion. The bank’s loyalty program is named ‘Wells Fargo Rewards,’ which is available to all eligible rewards-based credit card holders.

5. Capital One Venture Rewards

Capital One, which was founded in 1994 in Richmond, Virginia, is a bank that’s known for specializing in savings accounts, credit cards, and car financing options. The bank offers accounts for individuals and businesses and it enables parents to open savings accounts for their children with no minimum balance requirements or monthly fees.

To sum it all up,

At LoyaltyXpert, we have a solid track record and years of experience when it comes to creating successful loyalty programs. If you are looking for a loyalty solution partner that will not just help you design and run effective bank loyalty programs but stand firmly by your side throughout each stage, then look no further. Contact us today to book a free demo and experience how we can help you realize your dreams.

What comes to your mind when you hear the term “loyalty programs?” Some may think of tiers and points, while others may think of discounts and exclusive offers. But a loyalty program is much more than that!

If you are planning to create a loyalty program, you will be amazed to know the varieties of loyalty programs. Like many great things in the world, loyalty programs come in different forms and types.

At LoyaltyXpert, we have not only helped our clients create several types of loyalty programs but also used an effective combination of two or more loyalty programs. In this blog post, we have discussed five types of commonly-used loyalty programs as well as their connection with each other in detail. Read on and thank us later.

1. Tiered Loyalty Programs

If you have ever come across a loyalty program that uses the name of precious metals (Silver, Gold, and Platinum) to christen different clubs and offers different benefits to members in different clubs, then it’s nothing but a tired loyalty program. As the name suggests the loyalty program sets aside different rewards for different tiers (levels) and it provides more valuable rewards to members in higher tiers.

A study found that almost two-thirds of customers adjust their purchases and spending on brands to get the most out of loyalty points. That’s the main objective of tiered loyalty programs. That’s why it isn’t surprising to know that tiered loyalty programs are one of the most profitable loyalty programs for businesses. 

2. Subscription-Based Loyalty Programs

Also known as paid or premium loyalty programs, a subscription-based loyalty program needs its members to pay an advance or recurring (monthly, quarterly, or yearly) fee to join. Even though a majority of subscription-based loyalty programs entail an upfront contribution, many loyalty programs allow members to make recurring payments.

The main benefit of these loyalty programs is that it helps businesses retain customers for a specific period and drive higher sales. One research by McKinsey revealed that members who subscribe to paid loyalty programs are 60% more likely to make purchases. However, customers who join free loyalty programs are just 30% more likely to do that.

3. Points-Based Loyalty Program

As the name suggests, a points-based loyalty program rewards members with points for every transaction, engagement, or activity (such as taking part in surveys or providing feedback). This is the most common and widely-used loyalty program in the world. The accumulated points get translated into specific rewards. When customers collect a certain amount of points, they can use those to receive a discount or get a product.

4. Value-Based Loyalty Program

Did you know that a brand can retain its customers for a lifetime by aligning its business’s values with customers’ values? As per a recent study, almost 60% of customers said that they would like to stick with brands that align with their values. 

Value-based loyalty programs highlight the business’s values and align that with customers’ values. By using this loyalty program, a business promises to donate a portion of its sales to charities. This can help customers to select the charities that best align with their values.

Businesses that use value-based loyalty programs aim to build deeper connections with customers. Before running this type of loyalty program, it’s extremely crucial to define your values as well as find out the values of your target customers.

5. Spend-Based Loyalty Programs

The name itself is quite self-explanatory. In spend-based loyalty programs, members collect loyalty points as per the amount they spend with a brand. The more you spend, the more points you get! The best thing about this type of loyalty program is that it’s extremely easy to create, manage, and understand. It is also proven to be an effective way to increase transaction amounts and reduce customer churn rate.

All said and done

Even though loyalty programs come in different types and forms, they have one thing in common—to attract new customers and retain existing customers for a long time. Many companies are getting excellent results by understanding the strengths of different types of loyalty programs and combining complementary ones.

At LoyaltyXpert, we have helped many B2B and B2C businesses in creating different types of loyalty programs and we can do the same for you. To know more about our services and get a free trial, contact our team of experts today.

Bountiful natural resources. Picturesque landscapes. Beautiful weather. Excellent economic prospects. High standard of living. Fair societal structure. And much more. No wonder, Australia is nicknamed “The Lucky Country.” The magical combination not only makes it one of the world’s best places to live but also gives people their distinct personality traits—adventurous, friendly, happy, and loyal.

Now, when people are so friendly and loyal, what about the country’s loyalty market? Quite naturally, Australia stands out as one of the most mature markets for loyalty programs. As per a report by Research and Markets, the country’s loyalty programs market is projected to grow at a compounded annual growth rate of 11.7% from USD 3691.1 million in 2021 to USD 6452.3 million by 2026.

As many Australian brands use conclusive studies to design their loyalty programs, the efficacy rate is quite high. At LoyaltyXpert, we strongly believe that brands can reap significant benefits from conducting loyalty program surveys as well as studying research focused on loyalty programs.

In this blog post, we have mentioned some important studies that revealed key insights into the Australian loyalty landscape as well as detailed critical factors that influence customer loyalty as well as effective strategies to enhance customer loyalty in Australia.

Insights from Research on Loyalty Programs in Australia

A Mastercard study, which surveyed 7,000 respondents across seven markets in the Asia-Pacific region, found that more than 90% of Australians actively participate in one or more loyalty programs.

In its Australian Loyalty Program Survey, Company surveyed over 1,400 consumers. Here are some of its findings:

Six out of every ten respondents said that being a member of a brand’s loyalty program had encouraged them either to increase their buying frequency or choose the brand over its competitors or pay a premium for increased loyalty status.

Brands with top-performing loyalty programs reported that respondents were 10% more likely to buy from them, 12% more likely to recommend their name over competitors, and 14% more likely to enhance purchase frequency.

Airline loyalty programs were the least frequently used. Nearly 50% of customers said that they rarely or never used their airline loyalty program.

What are the Key Factors Driving Loyalty Programs in Australia

Australian customers are extremely astute and value-conscious. Apart from focusing on high-quality products and services, they also look at a wide range of factors such as:

1. Customer experience

A majority of Australian customers place a premium on excellent customer service and experience. From the first interaction to post-purchase support, every touch point matters. As the saying goes, “The after-sale service is more important than assistance before sales.” The overall service and experience a customer receives from a brand greatly influences their loyalty. Brands that consistently deliver positive and personalized experiences are more likely to earn loyal customers.

2. Value proposition:

Australian consumers are extremely value-conscious. They seek brands that offer a compelling value proposition. This goes beyond just competitive pricing. It includes product quality, convenience, and unique offerings.

3. Trust and transparency:

As American ad tycoon Phil Dusenberry said, “A brand is nothing but an expression of the consumer’s loyalty and trust.”Trust is the foundation of loyalty. Brands that are transparent and honest about their loyalty programs and rewards are more likely to gain the trust of their customers. They not only reduce the chances of loyalty frauds and pilferage but will enjoy long-term loyalty.

4. Customization:

One of the major reasons most loyalty programs fail is that they foster a one-size-fits-all approach. Brands must understand that different customers value different types of rewards. And they must personalize their incentives and experiences accordingly. Australian consumers respond well to loyalty programs that align with their interests and lifestyle. Loyalty programs that offer meaningful rewards and incentives can significantly impact customer retention. Businesses that leverage data to understand customer preferences and deliver tailored offerings can create stronger connections with their audience.

4. Social responsibility:

Ethical and socially responsible practices resonate with Australian consumers. As per new research by Australian media company Nine for Brands and cultural insights agency FiftyFive5, four out of every five Australians want brands to use their power for social change.

Effective Strategies for the Australian Loyalty Program

To thrive in the loyalty landscape in Australia, businesses can adopt several strategies to build and nurture loyal customer relationships:

1. Join hands with the right loyalty partner

Finding the right loyalty partner can mean the difference between success and failure. With a proven track record and years of experience, a reliable and reputable loyalty solution provider can significantly impact the effectiveness and long-term sustainability of your loyalty program.

2. Design strong loyalty programs and tailor rewards

Develop loyalty programs that offer genuine value to customers. Also, focus on providing relevant and tailored rewards to customers. Consider incorporating tiered rewards, exclusive offers, and personalized incentives to encourage repeat purchases and engagement.

3. Personalized communication

Use customer data to deliver personalized communication across various channels. Tailor your marketing messages to meet the specific needs and interests of individual customers.

4. Prioritize customer experience

Ensure consistency in customer experience across all touchpoints, whether it’s in-store, online, or customer support. A seamless and positive experience creates a strong impression and enhances loyalty.

5. Leverage referrals

Customer loyalty programs and referral rewards are a match made in heaven! As per a study conducted by leading market research firm Nielsen, nine out of every ten customers trust recommendations from family members and friends compared to any other form of advertising. By incorporating referral rewards, businesses can harness the influential force of word-of-mouth marketing to its fullest potential.

In general, it can be said that. 

Understanding the Australian loyalty landscape is extremely crucial for businesses that are either operating or planning to operate in the country. After all, it’s one of the most mature markets for loyalty programs. By partnering with the right loyalty provider and adopting effective strategies, brands can create robust loyalty programs that resonate with Australian consumers.

If you are looking to establish a strong presence in the dynamic and flourishing Australian market, LoyaltyXpert is the right choice for you. As an industry-leading loyalty solution provider with a wealth of experience and a proven track record, we understand the intricacies of the Australian loyalty landscape and can be your dedicated partner in crafting robust loyalty solutions. For Book a free demo, contact us today.

“Are loyalty programs liabilities or investments?” This is a million-dollar question for many businesses, including yours! Before answering the question, let’s understand the terms ‘liabilities’ and ‘investments’.

In his best-selling book “Rich Dad Poor Dad,” noted investor, author, and entrepreneur Robert Kiyosaki explained asset, liability, and investment in extremely simple language. An asset puts money in your pocket. A liability takes money out of your pocket. And an investment makes money work for you.

Now, coming back to the question, “Are loyalty programs liabilities or investments?” Well, some businesses count their loyalty programs are liabilities. As each point signifies a commitment to future service, the businesses’ balance sheets consider the monetary value of the points as a liability.

Are Loyalty Programs Liabilities or Investments?

Here are the reason loyalty program liability is an asset:

Whether a loyalty program is a liability or an investment depends on a number of factors, including the design of the program, the way it is managed, and the overall performance of the business.

If you think about liability as an investment you’re making in your members, then the loyalty program liability starts to look a whole lot more like an asset. Think about it this way: every dollar you put into the liability is an investment in your members.

Why are Loyalty Programs the Best Investments?

When prudently designed and properly executed, loyalty programs can generate a significant return on every dollar invested. That’s why many successful businesses publicize their loyalty programs around the globe and count them as their best investments.

Improved Customer Retention

The very purpose of loyalty programs is to enhance customer retention. This is the biggest benefit of loyalty programs as customer retention is more profitable and cost-effective than acquiring new customers.

Enhanced CLV and CFV

CLV stands for and CFV stands for. When a brand manages to retain customers and make them purchase more and more, it can unlock the potential for higher CLV and CFV, which results in higher revenue and profitability. By retaining valued customers, brands can also increase cross-selling and up-selling opportunities.

Access to Valuable Customer Data and Insights

Would you be surprised to know that a majority of companies collect zero- and first-party data on their loyalty app?

Loyalty programs provide companies with a huge amount of primary data, which can be leveraged to make data-driven decisions. Businesses can also use the data to personalize customer experiences and loyalty programs.

Cost-Effective and Easy to Monitor

Let’s face it; digital loyalty programs are much more cost-effective compared to traditional marketing strategies. In traditional marketing strategies, you allocate money to different marketing channels such as TV, radio, billboards, newspapers, and magazines and wait for the results. You don’t have any means to know which campaign is working and which isn’t.

5 Ways to Make Loyalty Programs Profitable

To get the desired return on your loyalty investments, you need to make sure that you adhere to these best practices for loyalty programs:

1. Know Your Customers

The first step is to know everything about the customer for whom you are creating the loyalty program. Try to find out everything about them starting from their age, gender, education and profession, purchase habits, likes and preferences, and interests. This will help you to create the persona of your perfect customer.

2. Handpick the Right Loyalty Partner

After knowing everything about your customer, it’s time to look for some reliable and reputable loyalty solution providers in the market and select the right partner as per your needs and specifications. You can take the help of the internet to start with the preliminary search and dig deep into the results to find the right solution provider for your business.

3. Simplify Registration and Onboarding

After joining hands with the right loyalty partner, it’s time to design a loyalty program. During this process, make sure that your registration process is extremely simple so that more of your target customers can register themselves without any hassle. While designing the app or platform, see to it that the on-boarding process is extremely fast and efficient.

4. Tailor Loyalty Rewards

Knowing your customers gives you a huge benefit as it enables you to design the right loyalty rewards for them. By creating various customer personas, you can know which customer segments value financial rewards more and which ones value experiential and non-transnational more.

5. Monitor your Loyalty Program

Last but not least, monitor your loyalty program and try to find out how your loyalty program is performing. If the actual results don’t match the expected results, recalibrate your program until you start getting desired outcomes.

Taking everything into account

At LoyaltyXpert, we have created and managed many businesses and helped them achieve high returns on their investments. If you are looking to make the most of your loyalty programs, contact us today or request a free demo with our loyalty expert.

Did you know that the restaurant industry has one of the lowest customer retention rates? A 2018 study found that while the media and professional services industry has the highest customer retention rates of 84%, the hospitality, travel, and restaurant sector have the lowest rate of 55%.

Over the years, food and beverage loyalty programs have proven to be extremely beneficial for restaurants, fast food chains, cafes, and diners when bringing in repeat business and boosting revenue.

This blog post discusses the benefits of restaurant loyalty programs as well as the different types of restaurant loyalty programs, with the latest examples.

Benefits of a Restaurant Loyalty Programs

Restaurants having a loyalty program benefits business in three primary ways to attract and keep customers:

1. Lower Costs of Customer Acquisition

In a restaurant, the cost of acquiring new customers is significantly higher than the cost of retaining existing ones.

That’s because the amount of money that eateries and restaurants spend on restaurant loyalty programs is only a fraction of what they spend on marketing and advertising costs.

2. Greater Word-of-Mouth Publicity

The right restaurant loyalty programs will not only fare better than marketing and advertising campaigns but will also lead to more favourable word-of-mouth publicity.

When customers get meaningful and valuable loyalty rewards and referrals, they are more likely to spread the word about their favourite restaurants and delicacies. It results in a win-win situation for all—the restaurants, customers, and their family members and friends.

3. Higher Profits and Revenue       

Higher profits and revenues are just a by-product you register after attracting more new customers and retaining existing ones.

After getting positive word-of-mouth publicity, you will get more customers, and the majority of them will come to you repeatedly.

Not just that, many of them will also bring more customers to you and set off a virtuous cycle.

4. Higher CLV (Customer Lifetime Value)

A well-designed restaurant loyalty program will enhance customer lifetime value (CLV).

CLV is a metric that measures the total amount a business (in this case, a restaurant) earns from the average customer over the entire lifetime of their account.

If you succeed in creating and running effective restaurant loyalty programs, you will generate a higher lifetime value from your customers. 

Types of a Restaurant Loyalty Program

When it comes to restaurant loyalty programs, there are four main types. We have also provided suitable examples of each type of loyalty program.

Points-based rewards

Item-based rewards

Subscription rewards

Promotional rewards

1. Points-Based Loyalty Program

As you can guess from the name, members of this loyalty program get points for their transactions and interactions. Restaurants that offer points-based loyalty programs reward their customers and loyalty program members with specific points for specific spending or just for visiting the restaurant.

The biggest benefit of using a points-based loyalty program is that it’s simple to manage and track. If you intend to use points-based restaurant loyalty programs, keep your rewards simple. When customers know what they can expect from the points-based loyalty program, they are more likely to participate.

2. Item-Based Loyalty Program

As the name suggests, in an item-based loyalty program, customers get a free item after specific transactions or activities. A good example of an item-based loyalty program is providing a free food item after a certain number of purchases or taking part in some activities.

3. Subscription-based rewards program

Under subscription-based rewards programs, subscribers receive rewards for touching specific milestones. The biggest advantage subscription-based rewards program is that it enables restaurants and eateries to build long-term relationships with customers who will pay a recurring subscription fee regularly (either monthly or yearly) to consume their favourite foods or beverages. It also provides restaurants access to upfront cash.

4. Promotional loyalty programs

In this type of loyalty program, members receive loyalty rewards with expiration dates that encourage them to tuck in or take away from the restaurant during a specific window of time.

Unlike other restaurant loyalty programs, promotional rewards don’t have to be pinned to specific programs.

To sum up,

Restaurant loyalty programs have revolutionized the way restaurants and eateries attracted and retained customers for a long time. Restaurant loyalty programs are among the best promotional and retention strategies for the hospitality and restaurant sectors.

Don’t look any further if you’re looking for well-designed restaurant loyalty programs. At LoyaltyXpert, we have designed and created extremely effective rewards programs for many reputable restaurants in the country as well as abroad. If you want to know how we can help, contact us today to get a free demo.

Would you be surprised to know that poor management is one of the major reasons for loyalty programs failure? You shouldn’t. If you take a look at some of the successful loyalty programs that didn’t do well as expected, you will find that poor management is among the biggest causes behind the dismal performance.

5 Proven Ways for Loyalty Program Management

Here are five proven ways for effective loyalty program management:

Define your goals

Understand your customers

Keep your loyalty programs simple and user-friendly

Focus on regular communication and engagement with members

Focus on regular evaluation and improvement

However, with proper planning, strategies, and partnership with the right loyalty partner, managing loyalty programs is easy. This blog post describes five proven practices to manage loyalty programs.

1. Define your goals

Defining goals is the first step that’ll help you turn your wants and desires into reality. Whether acquiring new customers, retaining them for a long time, raking in more sales, and registering more revenue, achieving all these will be easy when you set well-defined goals for your loyalty programs. While setting concrete goals for your loyalty programs, keep these in mind:

Have a long-term and short-term marketing strategy in place:

When creating strategies for a loyalty program, focus on long-term endeavours for three to five years. Also, have a one-year marketing strategy for your short-term goals.

Define your Key Performance Indicators (KPIs):

To define KPIs for your loyalty program, you should identify specific metrics aligned with team member objectives. The KPIs could include new customer acquisition rate, customer retention rate, sales revenue, customer satisfaction score, and average transaction value. Make sure the KPIs are relevant, measurable, and achievable.

Assign operational activities:

After defining KPIs, it’s time to assign operational tasks for the loyalty program team. While doing that, be fair and identify the unique talents of each team member. Assign tasks based on team members’ expertise and strengths. Encourage open communication and collaboration among team members so that they can uninhibitedly contribute their ideas and insights.

Determine the frequency and form of KPI reporting:

The last but most important point in the goal-setting stage is to determine the frequency and form of reporting progress on the KPIs. How often are you going to report the progress? Monthly or quarterly? Apart from that, allocate time to reflect and evaluate the results as well as identify areas for improvement.

2. Understand your customers

After defining goals, the next step is to understand your customers so that you can what they like and dislike as well as what’re their preferences and motivations. The best way to understand your customers is to conduct:

Market research

Surveys

Interviews

Social media analysis

Purchase history

Direct feedback

Now the question comes “Would customers readily give their data to businesses for better loyalty programs?” The answer is a resounding yes. As per a new Accenture study, eight out of every ten respondents are ready to share their data with brands if they get personalized experiences.

3. Keep your loyalty programs simple and user-friendly

There is great power in simplicity. To achieve the ultimate sophistication in your loyalty programs, keep things simple, realistic, and user-friendly. The advent of modern technology has made digital loyalty programs far simpler and easier compared to traditional loyalty programs.

4. Focus on regular communication and engagement with members

Effective communication is the ticket to success. When it comes to ensuring the success of loyalty programs, nothing can beat the power of regular communication and engagement with loyalty program members through various channels.

5. Focus on regular evaluation and improvement

After completing all the above steps, identify areas of improvement and make the required adjustments to boost your loyalty program’s user-friendliness and simplicity. If continuous improvement is your game plan, then nothing can stop your loyalty programs from being successful.

All in all,

The difference between successful loyalty programs and unsuccessful ones is the way they’re managed. When businesses manage their B2B and B2C loyalty programs in the best possible manner, then nothing can stop them from retaining their existing customers and attracting new ones.

If you are looking for a reputable and trustworthy loyalty partner not just to develop high-quality loyalty programs but manage them as efficiently as possible, then contact our team for a free demo

Did you know that food and beverage loyalty programs are probably the oldest loyalty programs in the world?

But time changed, people changed, and so did loyalty programs. The wooden tokens were replaced by digital points. People became more transaction. And as ironic as it may sound, good food alone isn’t sufficient to guarantee loyalty today.

That’s why we have created this food and beverage loyalty program a full guide to help you create and run successful food and beverage loyalty programs.

What are Food and Beverage Loyalty Programs?

As the name suggests, food and beverage loyalty programs are customer retention programs that are designed by restaurants, cafes, diners, and other establishments such as food delivery companies in the food and beverage industry.

Likewise, grocery loyalty programs are reward programs that are offered by consumer packaged goods (CPGs) manufacturers, supermarket chains, brewers and soft drinks makers, and others.

Which Types of Food and Beverage Companies Should Use Loyalty Programs and Why?

The innovation of loyalty programs revolutionized many industries including the food and beverage sector. Many players in the industry can benefit a lot by leveraging sophisticated loyalty platforms and running loyalty programs.

1. Restaurants and cafes

Restaurants, cafes, and diners should use food and beverage loyalty programs to encourage frequent visits and enhance customer retention.

2. Fast food chains

Food and beverage loyalty programs are extremely beneficial for national and global fast food chains because of their large customer base and high transaction volume.

3. Bars and pubs

These establishments can leverage loyalty platforms to design and run high-quality loyalty programs for their patrons. 

4. Bakeries and dessert shops

Bakeries and dessert shops can leverage loyalty platforms and food and beverage loyalty programs to promote new products, seasonal offerings, or limited-edition items to loyal customers. 

5. Food delivery services

Can a food tech company do without digital loyalty programs? Certainly not! Be it Uber Eats or Zomato, all leading food delivery services use F&B digital loyalty programs and digital loyalty platforms to engage and retain customers. 

6. Packaged F&B manufacturers

Packaged F&B manufacturers are among the major users of food and beverage loyalty programs.

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Top 3 Examples of Food and Beverage Loyalty Programs

1. My Starbucks Rewards

Launched in 2009, Initially launched as a visit-based reward program consisting of three levels—Welcome Level, Green Level, and Gold Level. In 2012, the global coffee chain major modified the reward program and introduced another “My Starbucks Rewards” four years later.

2. Amazon Prime’s Discount on Whole Foods Market

Amazon Prime, a subscription-based loyalty program from the US-based e-commerce company Amazon, also offers heavy discounts on Whole Foods Market.

3. Chipotle Extras

Chipotle Extras is an app-based loyalty program of Chipotle Mexican Grill Inc., also known as Chipotle.

Some say “data is the new oil,” some say “data is the new gold,” and some say “data is power.” 

All the proverbs make one thing crystal clear—in the contemporary digital age, data is extremely valuable for all businesses regardless of type and size.

A business that knows how to harness the power of data can be extremely wealthy and powerful in the future. And to do that, they must have the right mechanisms in place that’ll help them collect and use accurate data.

In this blog post, we discuss how manufacturing companies can leverage loyalty programs to collect and structure channel sales data. Read on and thank us later.

Here are 7 ways you can use loyalty programs to get channel sales data:

1. Automation of the Data Entry Process

In traditional loyalty programs, data collection and entry is a manual and labor-intensive process. All relevant channel partners’ data and information are confined to Excel sheets and it makes the decision-making process extremely tedious and time-consuming. 

In loyalty programs, the data collection and entry is automated and it enables manufacturing companies to collect all necessary customer data automatically.

2. Identification of Purchasing Patterns and Behavior

Traditional loyalty programs cannot identify purchasing behavior and patterns. But Modern loyalty programs  can prove to be extremely effective to track purchasing patterns and trends of channel partners, influencers, and customers. 

Channel loyalty programs can enable manufacturers to ascertain their most popular products as well as can help them make better decisions on potential sales. When manufacturers know which products sell the most and which don’t sell as much, they can make better-informed decisions about their products.

3. Greater Accuracy 

In traditional loyalty programs, the manual data collection and compilation process is prone to human errors. But in the case of channel sales programs, the data collection processes are completely automated and completely free of errors. 

4. Best Rewards For Our Channel Sales 

Loyalty programs can provide data on the best rewards for channel sales. Based on the data, manufacturers can understand which rewards create the highest engagement and retention as well as modify their incentives and rewards accordingly. 

By leveraging loyalty programs, manufacturers can provide the best rewards to their channel partners and win their trust and loyalty in a much more efficient way.

5. Efficient Collection of Sales Data

Sales data are gold dust for manufacturing companies and firms. The right sales data can help businesses make strategic and valuable decisions. 

Loyalty programs can help manufacturers in the collection of sales data as well as provide them with a better understanding of their channel partners. That enables them in shaping their marketing and sales strategies

6. Provide a Broad Look at Channel Sales Data 

One of the most important benefits of loyalty programs is that they can provide manufacturers with a broad look at their channel sales data. Instead of depending on the information obtained from one particular sales channel, manufacturers can gain insight into how their channel partners and influencers are performing across all channels. 

Aside from that, channel loyalty programs can enable businesses to understand how customers interact with each channel. For instance, using loyalty programs manufacturers can gain insight into the most popular channel among channel partners, trends, and conversion rates. Manufacturers can use the data to identify areas of improvement and make necessary adjustments.

Suggested Read: 7 Steps to Build an Effective Channel Loyalty Program

7. Measure the Impact of Promotional Campaigns

Manufacturers can use the data from channel loyalty programs to track and measure the impact of promotional campaigns and know which marketing and advertising strategies are working and which ones need improvement. 

They can use the data to refine future marketing strategies as well as capture a wide range of sales data. Loyalty programs can provide manufacturers with actionable insights.

Finally, it may be concluded,

At LoyaltyXpert, we have years of proven track record of designing and creating high-quality channel loyalty programs for all types of B2B and manufacturing companies.

With our loyalty programs, we have helped many B2B firms in the collection of critical channel sales data. If you are looking for a reputable and reliable digital loyalty software provider, then contact us today to book a free demo.

Did you know that the cement industry contributes 5.4 percent to global GDP and 7.7 percent to global employment? Globally, it’s one of the most important industries, and it plays a direct role in the infrastructure and economic development of all countries in the world.

Without cement, there would be no roads, buildings, or bridges, and infrastructure development would come to a standstill. That’s why more cement manufacturers must enter the rapidly-growing sunshine industry and cater to the rising demand.

What’s even more interesting is that the sector has a long and diversified supply chain. That’s why it’s also important for cement manufacturers to build strong relationships with their channel partners and influencers.

However, customer retention is becoming a challenge for many big and small cement manufacturers due to various reasons, such as lower margins and rising costs. 

How to Create a Cement Industry Loyalty Program That Works

This blog post discusses how loyalty programs can benefit cement manufacturers of various sizes and types and help them retain customers, channel partners, and influencers for a long time.

Here are seven things to do while creating a cement industry loyalty program:

1. Leveling of the Playing Field

The cement industry (both global and Indian) is a highly consolidated sector. To put things in perspective, the top cement company in India accounts for almost a third of the total market share. That means the rest of the players in the industry have to contend for the remaining two-thirds of the market share.

2. Diversifying of Customer Base

At present, a majority of cement manufacturers cater to just a handful of customer bases. The government infrastructure sector is the second largest customer, which contributes over 40 percent of the demand. That’s like putting all your eggs in one basket!

Diversifying the customer base not only minimizes risks but also presents cement manufacturers with more prospects for growth. Digital loyalty programs can help with that. Apart from supplying cement to institutional customers, cement companies can also leverage advanced loyalty programs to attract and retain individual customers.

3. Cost Efficiency and Competitive Advantage

At present, many cement manufacturers are grappling with lowering margins due to rising costs. Advertising and marketing costs account for a majority of the expenditure and many companies don’t have the mechanisms to calculate their return on advertising and marketing investments. But like in all other sectors, the cost of attracting a new customer is considerably more compared to the cost of retaining an existing one. 

Loyalty programs not only enable cement manufacturers to retain existing customers and channel partners but also provide them with several tools to measure their ROI.

4. Reduce Customer Churn

Customer attrition is one of the biggest challenges that many cement manufacturers face. As per a report, the global cement industry registers a 15–25 percent churn rate. As per industry standards, a customer attrition rate of more than 20 percent is considered high.

Digital loyalty programs can help cement manufacturers reduce customer churn rates. By coming up with different customer retention strategies, cement manufacturers can engage their customers, channel partners, and influencers and reduce the churn rate to a large extent.

5. Prevent Loyalty Fraud

Cement manufacturers that rely on traditional loyalty programs often struggle to ensure complete transparency. Pilferages and frauds are two big problems in traditional loyalty programs and they cause huge discontentment among channel partners and customers in the cement industry.

6. Facilitate Regular Communication with Channel Partners

Channel partners are extremely crucial in the cement industry. When cement manufacturers manage to retain their channel partners for a long time, they are more likely to tap into their strong network and make their products widely available in different markets.

7. Receive Frequent Feedback

By using digital loyalty programs, cement manufacturers can receive frequent feedback from their channel partners and influencers. This will keep the feedback loop open and it’ll enable cement manufacturers to know where they are doing right and where they need to improve.

Suggest Read: Create Customized Loyalty Program for Cement Industry

Taking everything into consideration

At LoyaltyXpert, we have a proven track record of designing and creating highly effective loyalty programs for all sizes and types of businesses across industries. To know more about our loyalty platform and request a free demo, contact our team of loyalty experts today.

As per Gallup’s B2B study, only 29 percent of B2B buyers are considered to be fully engaged. That obviously means the remaining 71 percent are more likely to switch to competitors. But that also means that B2B businesses have a huge opportunity to engage and retain those customers.

The best and most feasible way to do that is to have effective B2B loyalty programs in place.

At LoyaltyXpert, we have created a wide array of B2B loyalty programs for many B2B companies of various sizes across the globe. In this blog post, we discuss some important things you should know about B2B loyalty programs.

Important stats on B2B loyalty programs

A survey conducted by Incentive Solutions revealed that more than three fourth of B2B brands that participated in the survey have a B2B loyalty program in place. But nearly half of them consider them ineffective.

Almost two-thirds of B2B companies have plans to upgrade their existing loyalty programs or implement completely new loyalty programs over the next 12 months.

Strategies for successful B2B loyalty programs

Running and managing B2B loyalty programs can be extremely easy when you have the right strategies and tools in place. Here are four successful strategies to run effective B2B loyalty programs.

1. Streamline the onboarding process

Onboarding business partners and B2B buyers is an extremely important part of a B2B loyalty program. If it’s a complicated and time-taking process, then many will hesitate to join. But if the onboarding process is automated and streamlined, then it would work like a charm.

2. Offer unique and valuable rewards

Among all B2B loyalty programs out there, you must try to make your program stand out from the crowd. And the best way to do that is to offer unique rewards to your business partners that offer value to them.

3 . Partner with a reputable and reliable loyalty solution provider

As per data published on Comarch, one in every four B2B brands said that one of the most important factors in selecting a loyalty vendor is the proven ROI. Selecting the right loyalty solution provider can mean the difference between the success and failure of your B2B loyalty program.

4. Monitor and measure the efficacy of your B2B loyalty programs

After running B2B loyalty programs, you must monitor and measure the efficacy of your loyalty programs. See to it that they meet your expectations and provide desired results.

Popular B2B loyalty programs

When it comes to B2B loyalty programs, some incentive programs are much more effective than others. Here are some best B2B loyalty programs you should consider using.

1. Tiered memberships

Tiers provide a sense of exclusivity to customers. By offering tiered memberships, you can provide exclusive and personalized experiences to customers. It would also enable you to know the tastes and preferences of your buyers and business partners as they get to select the rewards they would like to receive.

2. Transaction-based discounts

Transaction-based discounts or rebates are offered based on the amount of money spent or the number of purchases made on specific transactions. These are among the most commonly used rewards in the B2B space.

3. Sales performance incentive funds (SPIFs)

These are performance-driven incentives that B2B companies use to motivate the sales team and business partners. Under this, you can reward top performers for sales volume, generation of quality leads, or any other achievement within a specific timeframe.

4. Cooperative marketing funds

Cooperative marketing funds provide business partners with a percentage of a company’s total marketing budget. Many B2B businesses provide these types of funds to buy promotional materials, create joint marketing and advertising campaigns, as well as cover promotional costs.

5. Experiential rewards

For many business partners, experiences matter more than rewards. As the name suggests, experiential rewards are rewards and incentives that offer unique experiences.

6. VAR incentives

Value-added reseller incentives are rewards that are given to business partners who become value-added resellers (VARs) of a particular product or service. These rewards aim to encourage dealers and distributors to add value to existing products or services and sell them.

To summarize

At LoyaltyXpert, we have crafted a wide range of B2B loyalty programs for all sizes of B2B brands across industries. If you are considering implementing high-quality B2B loyalty programs, contact our team of loyalty experts to book a free demo.

In the present time, businesses use a lot of marketing strategies to acquire customers. Some of them spend heavily on traditional advertising and marketing campaigns. Some of them use a wide range of digital marketing techniques. And some leverage the power of peer recommendations to attract new customers and retain existing ones.

The last type of marketing strategy is known as customer referral. As per various data and studies, referral programs are extremely effective and profitable compared to all other types of marketing strategies.

This blog post discusses the benefits of referral programs and how the right referral program can build brand loyalty. Read on to gain valuable insights.

Benefits of Referral Programs

As Facebook’s founder Mark Zuckerberg rightly said, “Nothing influences people more than a recommendation from a trusted friend.” When it comes to marketing and advertising, nothing comes close to high-quality referrals. Here are some benefits of referral loyalty programs:

1. Increase in Customer Retention Rate

A study found that referred customers have a 37 percent higher retention rate compared to customers acquired by other means. As per another data, 81 percent of customers acquired from referrals are more likely to engage with brands than customers acquired by other means.

2. Starting a Virtuous Cycle

In referral programs, existing customers get rewarded when they recommend new customers and the latter receive incentives on their first purchase. It sets off a virtuous cycle, where more existing customers are motivated to refer new customers and new customers are willing to buy and refer more customers.

3. More Leads and Expanded Network

As per the latest data, referral leads convert 30 percent better than leads generated from other marketing channels. Another stat reveals that four out of every five marketers, sales leaders, and frontlines sales representatives agree that their referral marketing programs yield the best leads. As referral loyalty programs provide access to a wider circle of customers’ friends and family, it enhances the potential of generating better quality leads.

4. Achieve High Customer Lifetime Value

As per a study, customers acquired through referral programs have a 16 percent higher lifetime value. When a majority of customers trust the recommendations from their family or friends and have a positive opinion about a brand, they are more likely to stick with it, make frequent repeat purchases, and have a higher lifetime value.

5. Enhanced Brand Awareness And Reach

Referral programs can help to spread the word about a business and its products or services. By encouraging customers to share their experiences with friends and family, businesses can quickly build a loyal base of customers and increase brand awareness as well as brand reach.

6. Cost-Effective And High ROI

Did you know that referral programs can offer up to 15 times the return on investment (ROI)? A recent study revealed that some brands had an average incentive of USD 50 per referral and they collectively spent a little more than USD 34,000 to generate revenue of over USD 496,000. The return is almost 14.6 times the investment!

7. Better Social Proof And Social Media Engagement 

Referral programs can enhance social media engagement as well as social proof. As per a study conducted by Olapic and Cite Research, more than a third of participants who follow brands on social media said that they like to view the content of people who use the brand. The content can be product demos, reviews, and unboxing videos.

8. Superior Customer Insights

High-quality referral programs can provide valuable customer insights. By monitoring referrals closely, you can know more about your customers and understand what they want from your brand. A sophisticated loyalty platform can provide you with the right analytics and reporting tools to keep an eye on your referral program.

9. Enhanced Customer Service And Customer Satisfaction

By offering rewards for every referral, you can enhance customer service as well as customer satisfaction. It can also help you create a close-knit community of customers and influencers, which can help in boosting customer service.

On The Whole

Referral programs are extremely effective for businesses to get high-quality customers who have a positive brand opinion and are more likely to stick for a long time. Referral programs also offer a lot more benefits to businesses in the form of high ROI, superior customer insights, and enhanced brand awareness and reach, just to name a few.

At LoyaltyXpert, we have created a lot of high-quality referral programs for a wide range of businesses across industries. If you are considering creating sophisticated referral programs, then contact us today to get in touch with our team of loyalty experts and get a free demo.

How Loyalty Rewards Programs Can Drive Growth in FinTech?The term ‘fintech,’ an acronym for financial technology, was coined by noted American financial advisor Abraham Leon Bettinger in 1972. It denoted using digital technologies for a wide range of financial and wealth management services. Two decades later, the global fintech sector witnessed huge growth due to the boom of internet services and the digital tech revolution.

In such a scenario, designing and running sophisticated fintech loyalty programs can be immensely helpful to attract new customers and retain existing ones. This blog post discusses the various challenges faced by the global fintech sector and how well-designed loyalty programs can offset the challenges. It also discusses various suitable rewards that are perfect for the fintech sector.

Some Challenges Faced By The Fintech Industry (And How Loyalty Programs Can Help)

Being a relatively new sector, the global fintech industry faces some unique challenges. But the good news is it can overcome the challenges by leveraging well-designed loyalty programs. We’ve listed four major challenges faced by the fintech industry and the ways loyalty programs can offset them.

1. High Customer Acquisition Costs

The average customer acquisition cost (CAC) is one of the highest in the fintech sector. A study conducted by San Francisco-based marketing agency First Page Sage analyzed the average B2B CAC of twenty two sectors and found that the fintech sector had the highest CAC of USD 1,450.

2. High Customer Churn Rate

The fintech sector, being an extremely competitive space, has a high customer attrition rate as well. A study published in The Economic Times found that almost three quarters of new Fintech app users churn within seven days. The customer churn rate is also a useful metric to determine customer loyalty. A high churn rate is a sign of low retention.

3. Rise in Cyber-Attacks, Security Breaches, And Loyalty Fraud 

The fintech sector is more vulnerable to cyberattacks, data security breaches, as well as loyalty fraud than many other sectors.

4. Lack of Tech Expertise

In the ever-changing world of finance, fintech companies must keep abreast with the latest trends and tech innovations in the domain. But some companies don’t have the right tech expertise to leverage emerging technologies to gain a competitive advantage.

Reward That Works Best For Fintech Companies

There are many types of rewards. Some work like magic in one sector but aren’t as effective in other. The same holds for the fintech sector, in which some of the most effective rewards are:

1. Tiered loyalty

In the fintech sector, tiered loyalty programs work extremely well. As customers increase their spending or banking transactions, they move up the tiers and get exclusive experiences, flexible rewards, and VIP treatment.

2. Gamified loyalty programs

As per a study conducted by Snipp, brands that leveraged gamification reported a 47 percent increase in engagement and a 22 percent increase in brand loyalty. In the fintech sector, gamification can be extremely effective to attract new customers and address various challenges. Gamification empowers customers to interact and engage more with loyalty programs.

3. Rewards for spending money

In this reward program, customers earn rewards as per their spending power. Customers who buy using the company’s credit card or payment app, earn rewards as well as various other benefits such as points, vouchers, and many other items.

4. Customer behaviour-based programs

Fintech loyalty programs can reward customers for various behaviours such as making a credit card payment, depositing cash, upgrading their services, trading in the stock market, buying more financial products, and participating in a survey.

5. New account activation programs

Fintech companies can also create loyalty programs to encourage the activation of new checking and savings accounts, as well as:

signing up for a direct deposit

maintaining a minimum account balance

downloading mobile app

This will attract more customers to open up accounts with the company and incentivize the creation of new accounts.

6. Referral programs

Referral programs are extremely powerful for fintech companies to spread the word about their financial products or solutions. In this way, companies reward their customers with points, offers, or cash for referring friends and family.

7. Points for custom events

Be it a new customer referral, making a repeat purchase, or signing up for the monthly newsletter, this reward program provides points for any custom behavior, event, or transaction.

Top Loyalty Programs in Fintech

Here are some of the best five examples of fintech reward programs to inspire you:

When the concept of modern loyalty programs first began in the 18th century, it entailed manual disbursal of rewards, coupons, and tokens. It also involved manual record-keeping of the collection and allocation of rewards. When a business deals with just a handful of customers, it may not seem like a big deal. But when it deals with hundreds or thousands of customers, running and managing loyalty programs manually can be a nightmare.

This blog post discusses several benefits of automated loyalty programs and some useful tips that’ll help you create effective loyalty programs for your business. Read on and thank us later.

Benefits of Automated loyalty Programs

As automated loyalty programs require no manual intervention in terms of operation and management, they offer a wide range of benefits. Here are some of them.

1. Time-saving

In business, time is more valuable than money. Automating loyalty programs will enable you to save a lot of time on manual tasks. The time saved can be used in more productive activities, such as:

Designing new products

Creating more innovative loyalty strategies

Focusing more on sales and marketing campaigns

2. Minimum errors

Manual tasks not only consume a lot of time but also are more prone to human errors. After all, as the saying goes, “To err is human.” But automating loyalty programs minimize the chances of human errors and enhances efficiency.

3. Cost reduction

Now, by costs, we don’t mean the “time is money” adage. Of course, you save a lot of time by automating loyalty programs. Hence, you save a lot of time as well. But you also save a lot of operating costs. Come to think of it, you will need to have dedicated staff to manage loyalty programs manually. You will also save on several other costs such as stationery bills and storage space, which may look insignificant in the beginning but can snowball over time.

4. Fraud detection and elimination

Let’s face it: loyalty frauds are a huge concern for businesses all around the globe. Many brands are leveling up their loyalty technologies and taking every possible step to detect and eliminate fraud. But choosing a reliable and sophisticated loyalty program platform can help you identify loyalty fraud on time and take a step to get rid of it.

5. Easy collection and syncing of customer data

Automated loyalty programs make the collection of customer data extremely easy. While enrolling in automated loyalty programs, customers will have to fill in relevant personal information such as:

Name

Age

Gender

Geographic location

As well as, some other demographic information

6. Collect reviews and social proofs

In business, non-paid reviews and recommendations play a huge role in influencing purchasing decisions. Various studies have found that a majority of customers trust word-of-mouth reviews and recommendations from their friends and family. This is where automated loyalty programs can help businesses collect customer reviews and social proof.

Tips For Creating Automated Loyalty Programs

In the digital age, creating an automated loyalty program or automating an existing one is extremely easy. You just need to have a clear goal and the right tools. Here are some useful tips to get you started.

1. Determine your purpose

Before creating an automated loyalty program, determine your purpose. Why do you want to automate your loyalty program? If you don’t have one already, find out why you want to create one in the first place. Is it to retain more of your existing customers? Is it to save time and money? Is it to prevent loyalty fraud? Or is it a mix of all?

2. Choose between in-house and hiring an expert

If you want to create an automated loyalty program, you have two options. The first is to build it from the ground up in-house. The second option is to leave it to an expert with years of experience in designing and creating high-quality and cutting-edge automated loyalty programs.

3. Select a reputable and trustworthy loyalty software provider

Choosing the right loyalty software can automate and structure your loyalty programs and enable your customers to earn and redeem their rewards quite effortlessly. That’s where selecting a reputable and reliable loyalty solution provider with years of experience can make all the difference.

4. Add rewards, create tiers, and monitor real-time analytics

After partnering with a loyalty software provider, you will have your platform ready as per your specifications and requirements. After that, you just need to market your loyalty program, add several rewards, and create various tiers for your members.

In sum

At LoyaltyXpert, we have helped many businesses around the world automate their loyalty programs. If you want to automate your existing loyalty programs or create brand-new automated rewards programs, then contact us to book a free demo today.

The loyalty of customers and business partners is critical to the survival and success of every business. For B2C companies, the loyalty of customers is indispensable for their growth and sustenance. For B2B companies, the loyalty of their clients and channel partners can make all the difference between success and failure.

In the B2B space, the potential to leverage loyalty programs is much higher than in the B2C space. Corporate clients and B2B buyers purchase in bulk quantities and spend much more money compared to individual customers. But despite that, many traditional B2B businesses fail to tap the potential of loyalty programs.

This blog post discusses seven reasons why B2B businesses must focus on creating and running effective loyalty programs as much as B2C companies, if not more. Read on to know the seven reasons why B2B companies must have well-designed loyalty programs in place.

Here are seven reasons why B2B businesses can benefit from a loyalty program:

1. Enhance retention

The very purpose of a loyalty program is to make customers and business partners stick with a brand. B2B loyalty programs do just that. Various studies have shown that buyers spend more and make repeat purchases when part of a brand’s loyalty program. B2B buyers and corporate clients are no different.

Another thing that B2B loyalty programs do effectively is that they help in closing the loop on customer feedback. As per recent data, B2B companies that close the loop on all customer feedback enhanced their retention rates by 8.5 percent.

2. Differentiate your loyalty programs

A joint study conducted by Google and CEB found that 86 percent of B2B companies found no considerable difference between competing businesses’ products. When products aren’t differentiated, it can be difficult to communicate a competitive advantage.

As per B2B International, four out of every five B2B buyers don’t prioritize price when making a buying decision. That means when B2B companies position price as their unique selling proposition (USP) and compete with each other on prices then they don’t appeal to most B2B companies. 

That’s why B2B companies need to differentiate their loyalty programs and be extremely targeted in their marketing endeavors to attract buyers.

 3. Enhance customer engagement

Customer engagement is one of the major objectives of loyalty programs. When B2B companies design effective loyalty programs, they manage to engage clients and win their loyalty. 

A study conducted by B2B International found that when B2B companies have well-defined and high-quality loyalty programs in place then a majority of clients are fully engaged.

Right B2B loyalty programs such as tiered incentives enhance customer engagement right from the very beginning and encourage clients and business partners to buy more. After engaging customers, B2B loyalty programs build robust relationships with customers and create a strong sense of belongingness.

4. Enhanced profit margins

As per a study conducted by Forrester Research, a mere two percent increase in customer retention has the same effect on profits as a 10 percent cost cut. According to another study, increasing the retention rate by five percent can enhance profitability by 20 to 125 percent!

As B2B loyalty programs enhance customer retention, they also have a huge impact on a business’s profit margins. Apart from profit margins, B2B rewards programs contribute to a 30 percent growth in market share as well as a 32 percent increase in total revenue.

5. To collect data and customize rewards

B2B loyalty programs are a goldmine of valuable data. Leveraging data effectively can enable B2B companies to understand their clients better and create more tailored and relevant rewards and experiences for them.

A Dimensional Research survey, in which many B2B marketers participated, revealed that seven out of every ten respondents said that they leverage historical information, big data, and predictive analytics to enhance their marketing effectiveness.

6. Referrals

Did you know that recommendations from friends and peers influence over 90 percent of B2B buying decisions? And did you know that nearly 85 percent of B2B buyers start the purchasing process with a referral?

Referrals are extremely crucial for B2B companies. By having a strong B2B loyalty program in place, you can encourage and motivate your channel partners and prospects to engage with your brand.

7. Enhance average customer lifetime value (LTV)

Customer lifetime value is the worth of a customer to a business over a specific period. If you keep a customer for a long time or reduce the customer churn rate and make them buy repeatedly, then the average customer lifetime value increases.

B2B loyalty programs can greatly enhance the lifetime value of channel partners and clients. Increased customer retention, engagement, and referrals lead to increased customer lifetime value.

By and large

Well-designed B2B loyalty programs are extremely valuable for B2B companies. Apart from forging robust relationships between B2B brands and their clients, they can enhance retention, engagement, profitability, and more.

At LoyaltyXpert, we have created well-crafted and high-quality B2B loyalty programs and channel loyalty programs for many B2B brands. We have also helped them retain and engage more B2B buyers and business partners as well as register higher sales and revenue. If you are looking for a reputable and trustworthy B2B loyalty solution provider, contact us today to know how we can help or to book a free demo.

How important are loyalty programs for financial service providers? Let’s take a look at the findings of various studies. One research conducted by Collinson Group reported that seven out of every ten customers who participated in the study said rewards from financial institutions influence their decisions.

Another study by KPMG found that three out of every five customers said that banks and financial institutions must come up with innovative ways to reward loyal customers.

Financial loyalty programs play a huge role in retaining customers and reducing customer churn rates in financial institutions. Speaking of churn rate, the median customer attrition rate in financial services businesses is between 20 and 30 percent, as per Customer Gauge data.

This blog discusses some key aspects of financial loyalty programs and lists the five best loyalty programs around the world. If you are looking to launch a financial loyalty program and gain some deeper insights into it, this is for you. Read on and thank us later.

Key Rewards in Financial Loyalty Programs

Over the years, financial loyalty programs have evolved a lot. Many banks and financial institutions use traditional rewards such as offers, cash backs, and other rewards. But many corporations have started using the following:

Tiered membership programs 

This is one of the most used reward strategies in financial loyalty programs. In it, customers are placed on specific tiers based on their bank balance or credit card purchases.

Reward sharing 

Many successful financial corporations allow reward sharing. This involves sharing loyalty points and rewards with other members or charities.

Digital wallets

Makes it easier for customers to store their loyalty cards, reward coupons, and event passes, which can be used for easy enrollment and reward redemption.

Exclusive clubs

Premium customers and big spenders are made members of exclusive clubs, which bestow a wide range of special privileges and benefits upon them.

Extra bonuses

Many financial reward programs provide extra bonuses to customers if they manage to make a specific amount of credit card purchases in a certain period. Some also provide bonuses if customers’ bank balances reach a certain amount.

5 Examples of Best Financial Services Loyalty Programs Globally

Some financial services companies have extremely successful financial loyalty programs compared to their competitors. Even though there are many such examples around the world, we have handpicked five extremely popular financial loyalty programs.

1. JP Morgan’s “One Card”

JPMorgan, one of the oldest financial institutions in the U.S. and the largest bank by total assets, launched its “One Card” loyalty program in 2009.

The points-based financial loyalty program encourages customers to use the One Card to earn loyalty points. Each loyalty point is equal to a dollar spent and the number of points a customer can collect is unlimited. The points don’t expire and are extremely easy to manage.

The loyalty program is fortified with real-time reporting, which not only makes it easy to track the points but also decreases the risk of misuse of points as well as loyalty fraud.

Customers can use the points in several ways, such as:

Gift cards

Cash credit

Travel coupons

Merchandise

The program also provides a lot of benefits, such as extra bonuses. Customers can receive 25,000 bonus points if they manage to spend USD 50,000 within three months of opening their accounts.

2. Citibank’s “Citi ThankYou”

New York-based multinational financial services provider Citibank also launched its “Citi ThankYou” loyalty program in 2009.

Like JP Morgan’s One Card, Citi ThankYou is a points-based loyalty program, which enables customers to earn points through various ways, such as:

Using a Citi credit card

Banking with Citi using an enrolled checking account

Adding qualifying services and products to an existing Citi checking account

A Citi credit card is needed to enrol in the program, after which customers earn one point for every dollar spent using the card. 

Customers can buy 1,000 points for USD 25. They can transfer the earned points to the account of another member.

Customers can use the points for cash rewards, gift cards, travel rewards, charity donations, and to pay back mortgage or student loans.

3. Capital One Rewards

Virginia-based bank holding company Capital One has a reward scheme, which is a three-tiered program:

General Rewards: This tier offers rewards to customers who have a credit card. The rewards range from cash back on dining, grocery purchases, entertainment, and more such purchases.

Travel Rewards: This tier offers rewards to customers who have Capital One Venture or Venture One travel rewards cards.

Cash Back Rewards: This tier is reserved for customers who have the Quicksilver credit card. Rewards include cash back on every purchase, which customers can redeem as per their preference.

The holding bank also has a loyalty program named “Purchase Eraser,” which enables its customers to make travel-related purchases with their rewards card. The purchases are wiped out from their statement as per the earned miles.

4. Bank of America’s Preferred Rewards

North Carolina-based multinational investment bank and financial services holding company Bank of America’s financial loyalty program is named “Preferred Rewards.”

It is a three-tiered loyalty program designed to reward customers based on the amount of money they have in their bank accounts. The tiers are:

Gold: Customers with a combined balance of USD 20,000 to USD 50,000

Platinum: Customers with a combined balance of USD 50,000 to USD 100,000

Platinum Honors: Customers with a combined balance of USD 100,000 to USD 1 million

Apart from being rewarded for the amount of money customers have in their bank accounts, they will also be rewarded in the form of discounts for certain products and services.

5. Wells Fargo Rewards

San Francisco-headquartered multinational financial services company Wells Fargo has a reward-based credit card system that’s available to all eligible reward-based credit card holders. The financial services company offers three eligible credit cards—Wells Fargo Active Cash Card, the Wells Fargo Reflect Card, and the Hotels.com Rewards Visa Credit Card.

Each card has a different reward system and benefits. Customers who have enrolled in one of these special credit cards get an opportunity to win a wide range of attractive rewards, such as:

Redeeming for purchases and gift cards

Redeeming rewards back to their accounts

Using the rewards towards airline and holiday expenditures

Customers can share the rewards with a fellow Wells Fargo account holder or donate the points to the American Red Cross.

The reward program is easy to manage. Customers can keep track of their rewards through the Wells Fargo website.

Taking everything into account

Customer retention and loyalty are one of the biggest challenges in the banking and financial services industries. That’s why financial loyalty programs are extremely crucial for banks and financial corporations to reduce customer attrition rates and retain their customers for a long time.

At LoyaltyXpert, we have years of experience in designing and creating high-quality and sophisticated loyalty programs for many banking and financial corporations. If you’re interested to know how our financial loyalty programs can benefit your business, contact us today to book a free demo.

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