Today’s customers demand valuable, personalized, consistent experiences no matter where they interact with your brand. The reality is, most brands are still struggling to retain their best customers—in large part due to the gap between customer expectations and their actual experiences. In fact, according to
Forrester, CX quality fell for a second year. So, what customer loyalty factors could you be better leveraging?
57% of consumers feel experiences have gotten worse in the past year.
(get.nice.com)
CX and loyalty work hand-in-hand
An effective loyalty program is one of the best ways to close your CX gap. Consumers’ needs and expectations are constantly evolving, and your loyalty program keeps you informed about changing preferences while keeping customers engaged. They’re also key to showing your customers you know and understand them—which is a huge step toward delivering better customer experiences.
On average, companies that invest in improving their customer experience see a:
(Keap)
It’s all about evolution
While we revere things like impressive buildings from centuries ago that have stood the test of time—your loyalty program can’t stand still. But how do you know what changes to make and which will be the most
impactful?
The good news is loyalty data can provide plenty of valuable insights as to what makes your members tick. The better news is we’re about to share a methodology for change.
The value/experience exercise
According to Chuck
Ehredt, CEO & Co-founder of Currency Alliance, the key customer loyalty factors, or drivers,
are customer value and experience. He advises companies go through a 5-step value/experience exercise every six months to identify ways to make improvements in both these areas. To streamline that process, here’s a roadmap to walk you through each step.
Before you dig in, these insights can fuel your creativity.
Value considerations
Here are some tips and seeds of inspiration for how to increase your customers’ value:
- Make sure the reward is valuable enough to justify the customer action or behavior (or, as we say, that the juice is worth the squeeze)
- Value doesn’t always translate to dollars or savings—think trust, simplicity, convenience, speed, flexibility and
frictionless - Reward your customers for behaviors and actions that go beyond transactions—such as completing their profile, downloading your app, referring others, writing reviews or completing a survey
- Partner with complementary brands to expand your value proposition beyond core products and services
- Look for ways to become part of members’ everyday lifestyle
Keep your program value front-and-center by communicating it often - Offer a variety of way
- Deliver value from day one, beginning with a solid
onboarding process that engages them right out of the gate
Keep your loyalty program value top-of-mind with frequent member communications:
- Proximity to the next tier or reward
- Points earned/used in a given
timeframe - Total rewards redeemed to-date
- Total savings through member discounts and promotions
- All the ways they can earn points
- Earned points that are expiring soon
- Points they’ll earn with a specific purchase
- Exclusive member-only benefits
- New member-only benefits and offers
- Celebrate milestones
“Offer members a variety of ways to earn as well as a range of rewards, so they can select options that align with their interests and preferences. This gives them the chance to explore new services and brand interactions, resulting in a more personalized experience.”
Erin
Raese, SVP Revenue & Growth, Annex Cloud
Experience considerations
Here are some things to think about as you brainstorm ways to deliver a better customer experience:
- Customers want to feel known no matter where they engage (in-store, ecommerce, mobile, social media)
- Members want the flexibility to earn and redeem rewards no matter which channel they use
- Leverage
gamification to add fun and excitement to interactions - Paid and/or VIP tiers offering exclusive benefits—such as early access to new products, priority scheduling or concierge services—make members feel special
- Don’t forget about recognition—it can be very powerful
- Create a community
- Today’s consumers prefer flexibility and self-service, so allow members to choose their own rewards
- Unify data and tech to enable more consistent experiences
- Give customers more opportunities to provide feedback
- Maximize joy and delight with moments of magic, something Adam
Posner calls Joyalty
After a good experience:
Your value/experience exercise roadmap
We’ve given you a lot to think about. Now it’s time to get to work!
We’ve created a hands-on
roadmap that walks you through the 5-step value/experience exercise to simplify and guide your brainstorming. Have fun with it!
