The more you tailor a customer’s experience to their desires, the better off you’ll be. Think about the brands you return to over and over again as a consumer. What do they have in common? Chances are, they anticipate your needs almost before you know them yourself. Digital rewards programs offer the opportunity to collect the necessary data and information to provide such personalization.
Providing incentives encourages your target audience to engage with your business repeatedly. By implementing digital customer loyalty initiatives, you can boost your conversion rates and raise revenue.
What Are Digital Customer Loyalty Programs?
Digital customer loyalty programs allow companies to record customer preferences for offers, discounts, and orders or services. Businesses offer incentives in return for purchases, such as accumulating points toward a future purchase or unlocking discounts after a certain number of orders.
Such programs have value because they make customers feel appreciated. When someone knows that they’ll earn points on a purchase, they are more apt to use your services to accumulate those points and enjoy cashing them in. You show customers that you want them to engage, and you provide them with something in return.
Digital loyalty programs track customers’ spending automatically through logins and codes, giving your business access to various data points. You can see patterns emerge from the sales data and judge which promotions work and which are less appealing.
What Impact Can Digital Rewards Programs Have on Your Business?
Digital rewards programs encourage new and returning customers. Here are four tangible ways digital loyalty programs can lift your bottom line:
- Providing greater convenience: Starbucks’ digital rewards program allows customers to order through a mobile app and earn points they can use for purchases. With a single swipe, you can order the same thing as last time when it pops up on your screen. The company has seen a 7% rise in in-store sales with the program, and the rewards program now generates more than a third of its orders.
- Improving the experience: People will share things about themselves to get discounts and better shopping experiences, according to research. A study found that 60% are open to sharing their location and lifestyle data provided they receive something in return.
- Pushing related products: By offering a discount on a product related to something a customer has already purchased, you can expand that person’s reliance on your company and make them more open to buying your products.
- Addressing potential issues in the moment: Customer loyalty programs also allow you to react to problems as they happen. Every company encounters hiccups. How you deal with them determines whether a customer remains loyal or walks away. You can issue gifts or refunds through customer loyalty programs and track what happens after your action to see if it pays off.
Build Your Own Digital Customer Loyalty Program
A digital loyalty program strategy can transform how you conduct your business, but you don’t have to do it alone. Sign up for Hydrogen today to start building your own digital rewards program.