Nowadays, “Loyalty Program” is becoming one of the core solutions for the company to attract and retain the customer. It is more cost-saving and sustainable building a strong loyalty program to gain valuable “repeat purchasers” rather than investing an amount of budget into marketing. 🔥
Despite the advantage of “loyalty programs”, not many enterprises (especially small and medium businesses) implement them effectively. Therefore, FADO GO illustrates guidelines for the organization to build a strong loyalty program successfully. 💪
✅ So, what is customer loyalty? 🤔
A customer’s likelihood of returning to your firm is determined by their level of Customer Loyalty. To achieve customer loyalty, a company must fulfill three core factors: (1) customer satisfaction; (2) positive purchasing behavior; (3) good value perception after purchasing. Loyal customers are believed to help businesses maintain their revenue stably as well as increase their brand equity since they repurchase continually and recommend products/ services to the others. One of the important tools to grow customer loyalty is implementing valuable loyalty programs.
✅ What types of loyalty programs are mostly used? ✨
There are various types of loyalty programs utilized around the world. Here are a few of the most well-liked ones that might serve as an example for you:
- Loyalty Points 🥰
Points earned after buying or using products/ services are determined as “Loyalty Points”. Customers can exchange the points into a specific reward if they reach a level of points after repurchasing products/ services. This typical technique is commonly established in various fields (F&B, E-commerce, Fashion…) such as Starbucks Rewards, Amazon Prime, The North Face, and so on.
2. Tiering/ leveling Reward 🚀
Instead of collecting points, customers are encouraged to purchase products/ services continuously to level up their loyalty program. Higher tier reaching corresponds with higher benefits achieved. This kind of reward helps to increase the customers’ buying frequency.
3. Affiliate Program 🥂
Customers can sign up to become affiliates or resellers who market the company’s goods in exchange for a portion of the profits. Along with selling, they can serve as brand ambassadors and advertise them on social media or via words.
✅ How can businesses manage them successfully? 💥
These are several recommendations help the firms to run the loyalty program effectively:
🎁 Valuable Rewards
Offering unique and intrinsic rewards that are suitable with the customer by understanding customer wants and needs through data analysis.
😄 Positive Experiences
It is necessary to add entertaining features such as game, music so that customers interact with the program enjoyably and positively.
🤝 Socialization
Customers prefer personalized and exclusive experiences. Therefore, sociable activities like cheering for consumers’ birthday or celebrating for achieving a level up loyalty program.
📢 Effective Promotion
One of the best ways to implement loyalty programs effectively is promoting on social media. Businesses can utilize paid advertisements to attract more customers and offer them extra rewards when sharing about a company’s loyalty program.
With the shift of technological development, loyalty programs are now transferred and managed under the form of digital engagements so that the customer can track their rewards easily and conveniently. Recently, “Cryptocurrency Reward” is considered to be a new potential type of loyalty program in the blockchain revolution. During COVID19 Shutdown, digital currency is considered to be a new and effective way to purchase goods/ services online. Understanding the difficulties, FADO Go which is a part of FADO VN (Top 1 Cross-border E-commerce Platform in Vietnam & Cambodia) newly establishes a potential form of digital loyalty program called “FADO Go Tokens”. FADO Go Tokens is a blockchain-based reward that allows customers to track and exchange crypto into coupons, vouchers or other loyalty programs benefits. Shoppers can enjoy the global online shopping experience and earn rewards in cryptocurrency (FADO token). Besides, retailers are leveraging rewards programs in virtual currency to bring shoppers back to their stores by offering cryptocurrency as rewards. Digital currency reward is believed to be the most desirable technological reward since it is liquid, global, and difficult to be fraud or stolen.
ABOUT FADO GO
Shop — Ship — Earn
A Blockchain-based platform that facilitates cross-border shopping easier by connecting consumers, brands, KOLs, and logistics providers on a decentralized network. Shoppers can enjoy the global online shopping experience and earn with cryptocurrency (FADO Token).
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Resource: usedata.com, marketingmag.com.au, Alejandra Fernández
