A Loyalty Program, if established and handled in the right manner, may bring enormous growth to a firm. Many D2C brands in India are losing out on the essentials of developing brand loyalty. The Indian D2C market is predicted to expand to $100 billion by 2025, which illustrates the level of rivalry arising in the business. Succeeding in such a competitive market is a challenge. But if you understand what it takes to establish your brand distinct from others, you win the game.
One of the most essential variables determining the success of a brand is brand loyalty. This is why firms are increasingly investing more and more in establishing loyalty programs to keep their customers. Loyalty programs are the techniques employed by organizations to build brand loyalty and improve customer experiences. Customers enjoy it when they get valued for their purchase and this is exactly what loyalty programs try to do. Before you start looking for a loyalty program business, you must be aware of the necessity of developing client loyalty:
Why Customer Loyalty is Important for D2C Businesses?
D2C businesses are facing more competition than ever before, especially online ones. To stand out in such a competitive industry, it becomes crucial to focus on establishing brand loyalty and boosting client experiences. Studies reveal that devoted customers spend 25% more each transaction than other shoppers. Moreover, recruiting new clients can be far more expensive than preserving the present ones.
Most D2C companies in India focus more on customer acquisition than customer retention. However, it should not be the case. It is fine to invest in acquiring customers. But to recuperate high client acquisition expenditures, maintaining existing consumers is just equally crucial. One-time buyers are less likely to become brand devotees. Loyal customers often feel emotionally linked with the brand and they likely to purchase more often.
A loyalty program does not only assist your business boost repeat sales, but it also enhances your customers’ experiences. Your clients feel cherished when they get rewarded for their purchases. As a result, customers start spending regularly to receive more rewards. This is how the benefits of loyalty programs are not simply restricted to customer loyalty, you can also gain new consumers and improve their whole experience.
Every D2C business needs to establish consumer loyalty to beat the competition in the market. Here are some most effective loyalty program strategies for D2C businesses. Make sure that you seek for these aspects while picking a loyalty program company:
1. Start with Reward Points/Discounts
Reward Points-based programs are the most basic sort of loyalty program. Under these schemes, clients earn a set number of loyalty points every time they purchase from a brand. The monetary value of these reward points is established by the brand exclusively. If you are trying to start with a cost-effective loyalty program for your D2C brand, a reward points-based program would be the best alternative to consider.
You can develop a separate portal to operate the loyalty program, where your customers can log in to track their rewards and redeem them. Make sure that you give some outstanding redemption choices. If the redemption possibilities are not excellent enough to thrill your clients, they will not be interested in earning more rewards. Allowing your clients to apply the reward points against their next purchase is also a terrific idea to encourage your consumers to come back.
2. Include Gamification
Gamifying your reward program strategy makes it much more exciting for your clients. Gamification is a strong technique that aids businesses in maximizing the benefits of loyalty programs by keeping their customers engaged. Along with increasing the amount of excitement, it motivates your clients to keep coming back for more. Below are some outstanding examples of gamification tactics to improve client loyalty:
Spin to Win Contests
You may organize Spin to Win contests on your website or app and allow your audience to Spin the Wheel once every day. This motivates them to log in to your app regularly to earn incentives or prizes. It can assist your firm in two ways. First, you get more app downloads and log-ins. Second, consumers who win discount coupons/prizes will make purchases to redeem these rewards.
Top-Spenders Leaderboards
Having a leaderboard for top spenders is another excellent gamification tactic. You can add a leaderboard to your website, where your consumers can check real-time top spenders of the day, week, or month. It pushes customers to spend more to see their names on the top of the scoreboard.
Referral Contests
Running referral competitions is the most cost-effective strategy to gain new consumers while improving the experience of your existing customers. You can keep different prizes for different levels of referral. For example, provide a 10% discount on referring to a friend, a 30% discount when they sign up, and a 50% discount when they complete their first purchase.
3. Promote Loyalist To Higher Tiers
A tier-based loyalty scheme also works remarkably well. As a D2C brand, you must understand that not every customer is equally loyal. There are clients who genuinely like your brand and prefer you the most. Also, there are other consumers who merely consider you an alternative and might switch as soon as they see another possibility. More loyal consumers deserve better rewards as they play a vital part in the success of a business.
You can come up with a loyalty program with several tiers. Many D2C businesses are already having similar programs. The more your customers purchase, the higher tier they get promoted to. And a high tier equals better benefits.
For example, say a brand has a loyalty program with three tiers A, B, and C. The customers enter tier A on making their first transaction. In this tier, they get 5 Reward Points for every Rs. 100 they spend. As soon as they complete 10 purchases, they enter tier B, where they receive 10 points for every Rs. 100 they spend. Once consumers complete 50 purchases with the brand, they enter tier C and start earning 20 points for every Rs. 100 they spend.
4. Provide Proactive Assurance To Your Customers
Loyalty programs are not simply about delivering prizes and discounts to your customers. You also need to focus on increasing your customers’ experiences and making them feel good about your brand. You may accomplish this by providing proactive assurance to your customers. Make sure that all their queries are answered and their doubts are resolved. This is why many D2C firms are introducing AI chatbots to their websites and applications.
If your business is online, you can add AI-powered chatbots to your website. With this, you can ensure that your customers’ queries are answered fast and with optimum accuracy. Even if you run an offline business, make sure that you have some support people present at your offline store. It delivers a sense of satisfaction to your customers and builds brand loyalty among them.
5. Reward Your Most Loyal Customers With Unexpected Gifts
The most loyal consumers of a firm are the most precious ones. You can identify brand loyalists by looking at your customer data. It is crucial to cherish these clients and appreciate their commitment. You can do this by sending them personalized notes and tiny surprise gifts on significant occasions like their birthdays. It assists in developing stronger relationships with your devoted customers, encouraging them to stay engaged with the company for a longer term.
Boost Your Brand Loyalty With Pine Rewards
Being one of the leading rewards and loyalty program providers in India, Pine Rewards helps businesses in developing and executing the most efficient loyalty programs. The team of marketing specialists at Pine Rewards has already completed loyalty programs for various top businesses.
Taking every detail of your business into account, Pine Rewards can help you create a loyalty program that coincides with your brand objectives. With lost-cost rewards and the best marketing methods, Pine Rewards may help you raise repeat sales within three months.