One of the most valuable assets of a company is its customer loyalty. Measuring and modeling customer loyalty is essential to expand and retain customer relationships. What’s the connection between royalty and retention? Aren’t they the same thing?
This blog sheds light on how retention and royalty are connected and How do loyalty programs work?
When both customers and retailers feel they are getting something beneficial from the relationship, the connection gets intense.
Customers deliver you their support when they purchase from your business, and in exchange, loyalty rewards like discounts and freebies substantiate that they are acquiring something in return.
Rewards are the most manageable way to guarantee customer loyalty. Everybody loves gifts and rewards in varying shapes and forms. However, Days are gone when a simple loyalty program with discount coupons sufficiently convinced customers to shop impulsively. Now, your program has to provide them with hosting giveaways, offering free devices, setting a loyalty point program, or providing access to the ultimate events of the season so you can express your gratefulness to your valuable customers.
Increases customer lifetime value and repeat business
Customer lifetime value is the amount of money that a customer will spend from purchasing a company until the end of the relationship.
Customer lifetime value is the total worth to a business of a customer. Evidently, it costs significantly less to retain existing customers than it does to gain new ones; therefore, boosting the value of your existing customers is a superb way to cause growth.
Comprehending the CLV aids businesses in developing approaches to gain new customers and keep existing ones while retaining profit margins.
CLV is different from the Net Promoter Score (NPS), which measures customer loyalty, and CSAT estimates customer satisfaction since it is closely connected to income.
And if that’s not enough, here are a few statistics that verify the significance of loyalty programs.
A perfect solution to hurdles of the loyalty programs can be brought about by Mobiance Token, which is a universal token for loyalty reward earning, giving, and converting. Mobiance is a rewards and loyalty solution built using blockchain and smart contract technology. The platform enables merchants to reward shoppers with Mobiance tokens (MOB), an ERC20 token for their purchases, and other valuable actions with configurable rewards. AI-based analytics results in increased sales by setting up and adjusting the rewards to achieve the best conversion rates and loyalty.