LOYALTY PROGRAMS WORK

  • Posted by admin 13 Aug
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LOYALTY PROGRAMS WORK

In today’s world, all businesses compete for the same share of customer hence increasing the competition for loyal customers. In our quest to become the business that is top of mind, most businesses have had to increase their product offerings, enhance and improve their customer touch points and reward customers for profitable behaviour, transactions, referrals, tenor, etc.

In our experience, we have seen that businesses in this part of the world do not have long term CRM and loyalty programs as part of their business strategy, it’s just something they decide to add on based on ‘demand’ or trend and hence the problem; as these programs / strategies have to be an integral part of all businesses business strategies and processes.

Many years ago, we were contacted by a bank who had seen an Industry Report showing the increase in card usage for a client bank of ours, over a 3 month period from the launch of their loyalty program. This new banking client wanted to achieve similar results and asked us to design a Loyalty Program for their payment cardholders only, so we came up with a 3rd Party Partner Loyalty Program that produced the following results (see image below).

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We however need to understand that the concept of loyalty programs is shifting away from frequency schemes to rewarding the customer for their entire relationship. Things as easy as tweets, likes on Instagram or other social media platforms, complaint registration, account opening and usage, etc. can be rewarded with a loyalty program as long as it is uniquely identifiable. As important as the BVN registration is to all account holders in Nigeria, imagine how easy and rewarding it will be for customers to be rewarded with Loyalty Points when the register / provide their BVN number.

Clients looking at implementing a loyalty program need to ensure that it’s not a one off activity rather it’s an integral part of the company’s strategy. Loyalty Programs aren’t quick fixes, they are long term programs that pay off in the long run. Building a successful Loyalty Program takes expertise and technology and In Nigeria, it’s great to hear of businesses such as First Bank Plc, Airtel Nigeria, Bheerhugz Café, Coral Blue, Globacom Nigeria, Skye Bank Plc, Priscilla’s Pride (just to name a few) with successful and engaging Loyalty Programs.

How are you integrating a Loyalty program into your overall Customer Strategy?

Please feel free to reach us directly by sending us an email should you have any questions on this or any of our blog posts.

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