Customer Loyalty Systems (Programs)
It is of great importance for each business to keep and improve the loyalty and relationship with its customers. One of the most successful models is the establishment of a customer loyalty system directed towards the customers who are important for the business. Practice shows that the investment in loyal customers is much less than the costs for new customer search (according to research it is 3 and 5 times less). Customer loyalty systems’ main purpose is to retain the customers in critical times. Loyal customers are customers with a friendlier attitude because apart from the specific products they get additional value. Sometimes these additional values influence the choice of the customer which company or brand to choose for a specific purchase. Moreover, loyal customers are a key advertising source as they more easily imply trust in the benefits of the company’s products and services.
Here are the benefits for a company using a customer loyalty system:
1. Retention of existing customers;
2. Attraction of new customers – new for the business or from competitors;
3. Increase in customer’s activity – more purchases for a given period and a bigger average value of a purchase;
4. Increase in the market share;
5. Customer knowledge – collecting information about customer behaviour, habits, preferences, better planning and positioning of new products;
6. Feedback – an important advantage for sales and product portfolio analysis;
7. Possibility for common market interests and connectivity of different companies via common customers identification and servicing;
8. Co-branding and redirection of customers towards partner companies on the basis of customer profile and activity;
9. Customer segmentation according to different criteria and definition of the company’s marketing activities;
10. More effective management of the goods on stock – by stimulating specific products during a specific period of time.
All customer loyalty solutions are based on customer loyalty cards containing personal information. Thus, the customers can be identified explicitly and there is no anonymous purchase activity. The personalization usually includes number and name of the customer. According to the customer loyalty systems the nameless cards (containing only number and barcode) are not usable because they do not generate loyalty to the company, they are simply an anonymous means of receiving privilege with no benefits for the company. Modern systems, considering most of the information recorded in them, use chip cards (contact or contactless) because of the strong security features. Simpler solution is the use of magnetic stripe cards.
Comitex provides modern technological solutions and services concerning Customer Loyalty Systems development. We can support the companies, regardless of the size of their business, to identify and successfully manage their loyal customers.
Comitex provides its customers with a complete technological know-how via consultation and cooperation with the customer throughout all stages of the development of the customer loyalty system:
1. Concept development and establishment of a detailed realization plan;
2. Technical solution – card terminals, specialized software for customer behaviour processing and registration, software hosting (upon request), support;
3. Design, production, delivery, personalization and packaging of customer loyalty cards.
If the company already has its own solution or is planning to integrate one using our products, it has to prepare an analysis on the basis of which an effective and technologically appropriate solution is offered – in most cases it is delivery, subscription personalization and mailing of customer loyalty cards at Comitex Card Personalization Center.
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