Benefits of Digitising Loyalty Schemes
As the world continues to embrace digital transformation, businesses are exploring innovative ways to engage with their customers. A popular strategy is digitising loyalty programs, which offers a convenient and rewarding experience for customers. By taking these programs online, businesses can enhance their connection with customers and provide them with an enjoyable and seamless experience.
In this article, we’re going to unpack the benefits of digitising loyalty schemes, the different types of rewards programs, and how businesses can implement them.
Let’s get started.
Table of contents
- Benefits of having a rewards program
- Digitising rewards programs
- Benefits of digital rewards programs
- Types of rewards programs
- How digital rewards programs can be implemented
- Which strategy suits your business
- FAQs about ecommerce
- Final thoughts
Benefits of having a rewards program
Before we dive into digitising loyalty programs, let’s first discuss the benefits of having a rewards program in general.
Firstly, rewards programs can assist businesses in their quest to build stronger relationships with their customers. By offering incentives such as discounts or free products, businesses can create a sense of loyalty and encourage repeat purchases. Rewards programs can also help businesses attract new customers and increase sales.
Digitising rewards programs
By moving rewards programs online, businesses can offer their customers a more convenient and seamless experience. Instead of having to carry around physical cards or coupons, customers can easily access their rewards through their smartphones or computers.
Benefits of digital rewards programs
There are several benefits to digitising rewards programs, including:
Ease of access
By moving rewards programs online, customers can easily access their rewards from anywhere. Whether they’re at home or on-the-go, they can simply log in to their account and see their rewards balance.
Ease of use
Digital rewards programs are typically more user-friendly than their physical counterparts. Customers can easily track their progress and redeem rewards without having to worry about keeping track of physical coupons or cards.
One challenge with physical rewards programs is breakage, which occurs when customers lose or forget about their rewards. By moving rewards programs online, businesses can reduce breakage and ensure that customers are always aware of their rewards.
Digital rewards programs provide businesses with valuable data that can help them improve their program and better understand their customers. By tracking customer behavior and preferences, businesses can tailor their rewards program to better meet the needs of their customers.
By offering rewards for purchases, businesses can incentivize customers to spend more money. This can help increase sales and drive revenue.
Types of rewards programs
There are several types of rewards programs that businesses can implement, including:
Tiered loyalty program
In a tiered loyalty program, customers earn rewards based on their level of spending. The more they spend, the higher their tier and the more rewards they receive.
Subscription-based loyalty program
In a subscription-based loyalty program, customers pay a fee to access exclusive rewards and benefits. This model is commonly used by businesses such as Amazon Prime.
Value-based loyalty program
In a value-based loyalty program, customers earn rewards based on the value of their purchases. For example, a customer might earn a certain number of points for every dollar they spend.
Points-based loyalty program
In a points-based loyalty program, customers earn points for their purchases, which they can then redeem for rewards. This model is commonly used by businesses such as airlines and hotels.
How can a digital rewards program be implemented?
There are several ways that businesses can implement a digital rewards program, including:
Businesses can create a mobile app that customers can download and use to access their rewards.
Businesses can create a rewards program that customers can access through their website.
Digital rewards card – (Apple Wallet)
Businesses can create a digital rewards card that customers can add to their Apple Wallet.
Which strategy suits your business?
When deciding which type of rewards program to implement, businesses should consider:
- Their target audience
- Their budget
- Their goals.
For example, a value-based loyalty program might be more appropriate for a business that sells products at a lower price point, while a tiered loyalty program might be better for a luxury brand.
FAQs about e-commerce
As businesses consider implementing a digital rewards program, they may have questions about the process.
Here are a few frequently asked questions:
How long does development take?
The timeline for developing a digital rewards program can vary depending on the complexity of the program and the resources available. However, businesses should expect the process to take several months.
How do I keep user data secure?
Security is a critical consideration when implementing a digital rewards program. Businesses should work with experienced developers who can help ensure that customer data is kept secure.
Can I migrate existing customers to a digital rewards card?
Yes, businesses can migrate existing customers to a digital rewards card. This can be done by asking customers to sign up for the program and linking their existing rewards account to their digital card.
In conclusion, Digitising loyalty programs can offer significant benefits to both businesses and customers. By providing a more convenient and seamless experience, businesses can build stronger relationships with their customers and increase sales. By considering the different types of rewards programs and implementation strategies, businesses can create a program that meets their specific needs and goals.