These are frequently asked questions about our services.
1. What is a loyalty program?
Ans: A customer loyalty program is a structured and long-term marketing effort which provides incentives to repeat customers who demonstrate loyal buying behavior. It is designed to enhance brand loyalty by cultivating an ongoing relationship between a marketer and his customer. Successful loyalty programs encourage the consumer to buy frequently, to increase the amount spent each time, and to concentrate all or most of their related purchases on that brand. It also acts as an effective tool to extract customer insights for the management for better understanding of consumer's spending behaviour and patterns.
2. What is a coalition program?
Ans: A coalition model of loyalty program is when two or more brands, companies or organizations come under a unified banner of loyalty program with a common marketing objective i.e. enhancing loyalty of their customers. It greatly helps in reducing the cost as the expenses on running and managing the program is shared by multiple brands. One of the additional benefit is it helps the brand in reaching a wider range of consumer in the shortest possible time. The “coalition” nature of these programs significantly increases the member's earning power, engagement, and loyalty, compared to other standalone loyalty programs.
3. What is a standalone or a white label loyalty program?
Ans: It is a proprietery loyalty program completely owned and branded by an indiviual company reflecting its brand value and specific to their marketing strategy.The main advantage of this program is that it allows the companies to own their customer data.
4. What is A B2B loyalty program?
Ans: B2B loyalty marketing programs are focused on engeneering loyalty and brand preference over a long term. B2B rewards are different, consisting of “soft” benefits such as information that can help the company get more value from the program sponsor’s product or service, or access to higher or more personalized levels of service that come with higher customer value. Hard benefits usually include some form of volume-triggered benefit such as cash-back or tiered pricing, and may include special benefits and privileges to a small or medium-sized business.
5. What is "Pay back ratio" in a loyalty program?
Ans: Pay back ratio is simply the amount of value that a company wants to return to the customer in a way of reward, for being loyal to the brand or company. For example: Every 100$ spent by the individual the company may decide to give back the consumer 2% to 3% back of the transaction value in form of points or cash voucher which the consumer may use it at his discretion.
6. Can return on investment be measured of a loyalty program?
Ans: Yes, rather a good loyalty program enables the management with a measuring tool to measure the ROI for every dollar that it invests in the program.
7. What kind of businesses should have a Loyalty program?
Ans: Loyalty is an emotion which applies to all humans whether they are in B2C and B2B sector. Hence there is no business segment which cannot have a loyalty program. However the channel and application of delivering the loyalty program may vary.
8. Is it expensive to have loyalty program?
Ans: The cost of the Loyalty program may vary depending on the technology, size, scope and the number of geographies it has been extended to. However generally developing a loyalty program is not a very expensive strategy but definitely brings in a great value if managed professionally.