Loyalty programs can not only help you generate more leads but also help you scale your business in the long run. We, in this article, will give you some amazing tips and tricks to build your own custom loyalty management software that will help you make your loyalty program a huge success!
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Do you also have that one friend who owns an iPhone and keeps talking about all the reasons why Apple is better than android? (...even though no one asked!)
…Well, that apart from being slightly annoying is a phenomenon called ‘Customer Loyalty, something that every brand longs to achieve.
Walt Disney put it really well - “Do what you do so well that they will want to see it again and bring their friends” AND Steve Jobs lived it word by word & the result?
Apple successfully establishing one of the most loyal clientele around the world.
Simply put, customer loyalty can be described as a customer's willingness to do business with you again. On top of that, customers who are loyal to your company don't just return, they don't just refer you to others; they also insist that their peers do business with you as well.
On that note did you know that new customer acquisition is the priority of 44% of firms, while customer retention is the goal of only 18%? This is despite the fact that acquiring a new customer costs 6 to 7 times more than keeping the ones you already have. Today’s highly competitive market clearly indicates that customer retention should be prioritized equally if not more important than customer acquisition for businesses to survive. However, building customer loyalty is becoming increasingly difficult for brands due to the availability of seemingly infinite choices and rewards…
Feeling overwhelmed while trying to balance ‘must do’ and ‘hard to do’? Don’t worry, we'll tell you all about the silver bullet called loyalty management software, that can help you run successful loyalty programs without breaking a sweat!
What Is Loyalty Management Software?
A loyalty management software is a marketing tool that is used to launch, manage, and track your loyalty program performance. This software helps you track and strengthen your customer value after acquiring them. It can provide your business with functionalities like tracking purchase behavior, custom loyalty reward programs, target marketing, gamification, and more. The best loyalty management software is designed with your unique business requirements in mind.
Here are some popular loyalty programs that should be supported by your loyalty management software:
Earn & Burn Loyalty Program
Tiered Loyalty Program
Perks Loyalty Program
Gamified Loyalty Program
Lifestyle Loyalty Program
Referral Loyalty Program
Paid Loyalty Program
Hybrid Loyalty Program
So without further ado, let’s take a closer look at all that you need to know about loyalty management software and help you decide why it’s the right choice for you!
Benefits Of Loyalty Management Software:
We don’t expect you to blindly believe us when we say that investing in customer loyalty management software can be a great idea for your business…
You’re the decision-maker and we are here to simply give you all the nitty-gritties of this software and help you figure out if this is what your business needs. On that note, check out some of the major benefits of developing a loyalty management platform:
[1] Create A Loyal Customer Base
The main benefit of a loyalty management system is quite understandably, to establish customer loyalty.
“Digitally? How?” should be your immediate next question.
As we get into the answer, being a marketer or business owner you might not even want to have a look at any more advantages to make up your mind. Because you already know how difficult it is to create a customer loyalty program that is successful in the long run. To start with, the problem is not with how you have planned the loyalty program but with how it’s implemented. These days, for campaigns to be successful, the support of modern technologies through custom software that’s tailored to fit your specific business mission & vision. So, creating a loyal customer base is definitely the main purpose of loyalty management software, and all the other benefits you’ll be checking out next are accelerating add-ons!
[2] Acquire New Customers
I have been stressing the importance of loyalty management software because retaining your existing customers is more important than acquiring new ones. It’s comparatively cheaper and yields more value in the long run. But, what if I say you can have the best of both worlds - customer acquisition & retention, at once?
Reportedly a whopping 65% of new business opportunities can come from recommendations and referrals, get the hint? Right - loyalty management software is the easiest way to get there.
[3] Reduce Operational Expenses & Increase Profits
Inflow and outflow are every sane businesses’ constant concern and that makes this point the most striking one. Let’s start with the numbers this time, 54% of users say referral programs have a lower cost per lead than any other channels! Also, referred customers have a 37% higher retention rate which translates to a higher lifetime value. So, how does a customer loyalty management software make that happen?
By automating your sales and marketing efforts to acquire new customers. So, you end up saving a lot of money that otherwise went into maintaining huge manual efforts. Custom loyalty system seamlessly rewards your current customers for bringing in more sales - sounds like a win-win situation?
[4] Gain A Competitive Edge Over Your Competitors
It doesn’t matter if you have a brick-and-mortar store or an ecommerce website, businesses across all industries have realized the significance of a loyalty program, this is why around 88% of marketers already use loyalty management software. By tailoring your customer loyalty program based on your core clientele’s preference you can gain an upper hand over your competitors and keep your USP intact. A customized loyalty program can help you keep your current clients and even grab some from your competitors by providing them unique rewards and convenient benefits.
[5] Increase Brand Relevance
A customer loyalty program can not only help you beat your competition but also help you grow your business amid those downturns and sluggish non-festive and so called ‘off-season’ times by giving your customers enticing incentives as they shop. A loyalty management software enables you to track and maintain detailed information about your clients’ purchase trends and communicate with them regularly about sales, exclusive offers, and rewards to keep them on the radar. This will assist you in nurturing a strong customer relationship and maintaining your brand relevance in their minds. After all trust & emotions sell products the best & what smarter way to grow your market share than building your own loyalty software.
[6] Improve Your Business Strategies
Tracking your customer activity and studying their shopping habits can help you gain valuable insights about both your business and customers. This way you can find ways to improve your operations and offerings that are best suited to your audience’s preferences. Believe me.. useful data about your customers is much more valuable than any short-term profits. It’s also extremely important to address any grievances of your customers to keep your brand name intact in the market.
‘Your most unhappy customers are your greatest source of learning’ I didn’t say that… Bill Gates did! And it’s pretty accurate… You can’t make everyone happy (at least not in your first attempt) but that does not stop you from accepting your shortcomings gracefully and working on them to do better in the future. Your loyalty management platform can help you proactively take useful feedback from your clients, analyze them, and eventually result in improvement!
Source : medium
Key Features Of Loyalty Management Software
Now that you’ve seen all the reasons and data behind why you should go for a loyalty management software let’s have a quick look at the ‘must-have’ features for your loyalty management software:
(a) Flexibility & Scalability
Firstly, a good loyalty management software must give you the option to customize your loyalty program, switch between different types and even combine a few features on-the-go as you wish! Along with that, It should also have the capacity to accommodate any future additions.
(b) Tracking Customer Activity
Tracking your customer activity should be the foundation of your loyalty management software because your entire loyalty program is based on understanding your customer’s purchase patterns and encouraging them for more through rewards.
(c) Detailed Reporting With Intuitive Dashboard
Your loyalty management software should be capable of tracking, analyzing, and reporting all the important data about your customers with impeccable logic and also present them on an easy-to-understand and intuitive dashboard.
(d) Unique Referral Marketing System
Your loyalty software not only needs to support a robust referral system but also be flexible in nature to run the loyalty program successfully. Tailored referral programs yield better customer participation, attract more customers and keep them engaged for a longer period.
(e) Support Multiple Rewards
A good loyalty management system should allow you to tailor your rewards structure based on your target audience and business objectives in mind. You should be able to offer a variety of rewards like cash-backs, points, freebies, miles, and more!
(f) Omni-channel Accessibility
Make your customer’s life convenient and they’ll reward you with their loyalty! Your loyalty program benefits should be accessible to your customers on all possible channels you are operational on, like your ecommerce website, mobile app, and physical store.
(g) Integrate With Your CRM System
Your loyalty management platform and customer relationship management (CRM) system should be able to communicate with each other seamlessly and give you detailed information about your customers. This will give you greater control and insights over your loyalty program and increase its likelihood of success.
(h) Automated Outreach Marketing
Your loyalty management software should be able to run targeted outreach marketing campaigns like automatically generating and sending custom messages and offers to your customers based on their activities.
(i) Point-of-sale (POS) Support
If you have brick and mortar stores then your loyalty software should be integrated with your point of sales (POS) system so that your customers can access and redeem their loyalty benefits easily. Just make sure that the system updates all data in real-time.
(j) Safe Payment Integration
You need to integrate secure payment gateways with your loyalty management system to help your customers make safe payments. It should be easy to use, provide a variety of payment options, and of course, be reliable.
How Much Does It Cost To Build A Loyalty Management Software?
Depending on your specific needs and the functionalities you wish to incorporate, the price of developing a loyalty management software can vary greatly. I've already covered a variety of features and elements that may be added to your loyalty management software, and they can have a big impact on the price of your software development. Still, for your reference, the following are some of the major variables that affect the price of creating loyalty management software:
- The number and type of features you want to include in your software
- The timeline of the project
- The software framework and logical complexity
In addition to those listed above, the price of developing your software will be influenced by a wide range of additional factors. But, to give you a rough estimate, the cost of developing most loyalty management software falls anywhere between $10K to $40K and soars higher if you want a more sophisticated and feature-rich product.
Here's a generic guide to hire software developers that may ease the process for you and answer all your questions!
Why Develop Your Custom Loyalty Management Software With BinaryFolks?
If you are in search of an experienced loyalty management software development team to pace up your business, BinaryFolks can help you out. Our skilled & experienced software developers have hands-on expertise in delivering a wide range of projects for clients from various industries. Unleash every inch of potential your loyalty management software could possibly have and let BinaryFolks uplift the growth graph for your business. Here's what to expect if developing your loyalty management software with BinaryFolks :
Driven by ex-engineers from Google, Amazon & Salesforce
101% Value For Money (+1 for Our Complimentary Consultation before You Spend Your 1st Dollar!)
Reviews That You Can Verify!
Safeguarded Business With An NDA
Out-Of-The-Box Innovations
Eye For Details
Questions Galore (Until Your Requirement & Our Understanding are mirror copies!)
Insight-Rich Scope Enhancement
Intense Domain Expertise
Close-knit feedback loop
Conclusion
Okay, now I have to ask, what do you think… Is it the right decision for your business?
Or still confused?
Let’s get started with a no-obligation consultation that is free of charge!
Let’s Plan Your Loyalty Management Software!
