Retaining customers and converting them into loyal fans of a brand represents 20% of the cost of acquiring a new user from scratch. In a world that is increasingly competitive for reach and attention, how can companies truly differentiate themselves from their competitors?
Customers surf a sea of “tailor-made” offers and benefits on a daily basis, which seek to increase their level of knowledge and satisfaction with the brands they choose. However, behind the most common loyalty programs, –such as adding points or special discounts–, there is a world of different techniques and methodologies applied to each particular case.
Although it is commonly assumed that offering points for purchases is enough to build customer loyalty, this is only the first step. Companies can develop more complete and specific strategies to increase their Customers’ Lifetime Value (LTV) as a result of the data explosion.
Why is a loyalty program important?
Loyalty is the retention of earned customers, so they continue to purchase the products or services of a specific brand as a result of their positive experiences with it. In other words, they are the actions taken to exceed the clients’ expectations and achieve being in their top of mind.
To achieve this loyalty, it is critical to create successful interactions that lead to a trusting relationship that grows stronger over time. In short, loyalty is rewarding customers for their preference of the brand.
According to Invesp, retaining an existing customer costs five times less than obtaining a new one. But that ‘s not all: while 44% focus on new user acquisition, only 18% of the companies focus on retention. In other words, there are still companies unaware of the virtues of customer retention, and have yet to explore dozens of actions and alternatives to achieve it.
Multiplica at the forefront of customer loyalty
Multiplica has acquired Issi Tech in order to continue expanding its value and service offerings. A company with more than 25 years of experience in the development, implementation, and management of innovative loyalty programs focused on results and the return on investment.
As a result of the acquisition, Multiplica now has a new platform to provide companies with a sophisticated tool that handles the complete Lifetime Value (LTV) of its consumers, both for acquisition, retention and loyalty.
It should be noted that some of the world’s most important companies are already using this solution.
For example, a prominent oil company has implemented a loyalty program that significantly improved the customer experience. A better user experience is achieved thanks to a mobile application, speeding up and simplifying each fuel load; accessing discounts and promotions; and adding balances for future gasoline refills.
That’s not all: thanks to an extensive network of agreements and partnerships, clients can also accumulate a balance to spend in other associated businesses such as Decathlon (Spain), El Corte Inglés (Spain), or Amazon, amongst others.
These services are also used in the health field. Such is the case of a leading pharmaceutical company, which has already implemented these services to provide a loyalty program for sales prescribers, whereas pharmacists earn points for sales, training, and promotion participation.
5 Advantages of Implementing a Loyalty Program
- Increase sales
A loyal customer spends more than a regular customer. As a result, having more loyal customers generates consistent revenue, which can be used to cover fixed costs or expand the business.
- Reduce marketing spend
A loyal customer is also more likely to recommend the brands they are loyal to. This encourages new customers to begin purchasing sooner than if they had done so as a result of the marketing strategy itself.
- Create long term relationships
Happy users who are in love with a brand tend to maintain a relationship with it over time. Furthermore, as more and better data is collected from these users, brands will be able to offer them products, services and benefits tailored to their specific needs.
- Improve in terms of competition
Loyal customers tend to maintain their purchasing habits with the same brand, making it difficult for them to switch to the competition.
- Data-driven innovation
Having loyal customers means having their data. Making better use of it allows the development of new solutions, products or services that are more tailored to their expectations, resulting in increased brand loyalty.
Multiplica continues to expand its catalog of technological solutions and services with the acquisition of Issi Tech, a company dedicated to building lasting and profitable relationships between organizations and their clients.
If you’d like to learn more about developing loyalty programs for your business, contact me.