Running a retail business on the track of a customer’s perspective gives the right direction for the growth. Build up of potential customer base and attracting new customers are always evergreen tasks for the revenue growth and familiarity gain. Since the entire on-demand industry is the competitive one, registering the pace with the huge customer base is the struggling one for the retailers.
Retaining the customers with attractive options is the simplest way and it reduces the risk values of the retail business owners highly. How to retain them?. Loyalty programs are the easiest thing to capture the customer’s preferences and contribute to the built-up of strong customer relationships.
Nowadays, store-based purchases are slow down due to pandemic situations and the owners are in need of a solid base for customers. To help them to come out from this crisis, a retail loyalty program is the necessary one. Also, this slowly increases the customer participation level that leads to revenue growth.
A retail loyalty program is commonly one of the reward gaining programs designed on the basis of the retail industry challenges. With the efficient program, the purchasing frequency gets increased and the customers turned their attention towards the access of large product catalog.
Customer Retention and Customer Acquisition are common technical terms highly related to retail loyalty program implementation. Some retail business owners spend their maximum amount of money for retention and some for new customer acquisition. The research studies depicted that returning customers spend around 67% higher than the new ones.
At the same time, retailers don’t want to ignore the new customers. Hence a composite on budget, retention, and acquisition is the essential one in real-time. Loyalty programs in the retail business are the opted solution for this composite.
Most of the retailers thought that offering discounts is a good idea to retain customers. But, continuing this process makes them feel the products are of lesser value, and retailers are forced to sell the products to them. This also greatly affects the sustainability of new retailers in the market.
Rather than, if the retailers start to focus on what type of brands they preferred, services they expected in real-time are the real loyalty program metrics. With the best retail loyalty program, retailers quickly access the customer preferences, upgrade the features and workflow accordingly, and scale up customer retention for a long time.
The analysis till now conveys the brief intro about the retail loyalty program and the benefits of it on customer retention. Being an experienced player in the on-demand app development field, Uplogic clearly knows the impact of such loyalty programs and develops the loyalty program software especially to boost the customer retention rate and revenue value. Prior to development, let’s have a look at the need for loyalty programs in the retail business shortly.
The Need For Loyalty Programs In Retail Business
If you are a new retailer, then you must be aware of the loyalty program and its impact clearly. Growing your customer base is highly dependent on how you hold your customers in the long term and how you treat them for the entire purchase. According to the research studies, the following observations are made.
- Among the globalized customers, 57.4 % of customers prefer the one retailer platform that offers the loyalty programs to reduce excessive money usage.
- 58% of the people buy the items for the online-stores and they are branded if they carry the loyalty programs periodically in the business platforms itself.
- In parallel, 61% of the retailers faced obstacles due to the lack of best loyalty programs.
- 5% of the increase in customer loyalty will increase the profit value for the retail business is 25% to 100%.
Upon analyzing the above statistics, the necessity of the loyalty programs is assured. Besides, loyalty programs are also needed to achieve the following things.
- Revenue Expansion
Building up a loyal customer base through these programs is a trustworthy practice. Loyal customers show their trust value towards your branded service. They also performed repeated purchases from your platforms.
The repeated purchases stimulate the revenue value highly and also it is also responsible for the new customer for the retail business. When the customers start to purchase, the preliminary segregation of the loyal customers from the new customers and treating them with the attractive options help to improve the revenue value highly.
- Save Investment
Investment in proper ways helps to save the new business launchers in critical situations. When you spend the investment on the loyalty program implementation, the cost spent on the promotion strategies is prevented.
According to the research statistics, the strategies for new customer acquiring are 25% greater than the cost spent on customer retention strategies. In parallel, the treating of loyal customers in a better way leads to the arrival of new customers towards the business more than the expected level.
Strategies to be Followed by Uplogic While Designing Loyalty Program Software
After knowing such effectiveness of loyalty programs and revenue-scaling options, Uplogic develops the loyalty program software with the recent features. Here is the list of strategies followed while designing the retail loyalty software in detail.
- The idea for Reward Programs
Merchants, local retailers in the delivery industry always focus on steady revenue, purchasing orders, and a strong customer base. The customers for them are in a position to purchase the same items in a recursive manner. Rarely, different items are also purchased.
For repetitive purchases, Uplogic introduces an idea to incorporate the rewards program where the buying patterns of the customers are simplified. The specific category for the dedicated customers allows them to directly look at these options and place the orders easily. The time consumption for this type of purchase is comparatively lower than store-based purchases.
- Know the Audience Demands Completely
Based on the products sold and the targeted region, customer loyalty has differed. Identifying their correct needs and the aggregation of the necessary products is the top activities of the business.
In addition to focusing on offering discounts, the consistent tracking of their behavior, the need for choosing your platform, real-time needs, attention-seeking are the common points of getting awareness about audience demands.
- Make Purchasing Experiences continue One
In general, the people visit some website for purchases, collect the revenue points or rewarding points. But, the usage of them is rarely observed among the customer side. The best loyalty programs for retail businesses are the commonly key driving factor for customer engagement even when they are not purchased.
Uplogic encourages retailers to recommend the newly available products to the customer’s portal. This makes the customers aware of the latest branded products available. By sending the emails, promotional messages to the social platforms, retail loyalty programs allow the customers to be fully engaged with your retail platforms.
- Focus on Better Communication
Uplogic finds communication as the best platform and it stabilizes the relationship between the customers with the retailers. The matching of the customer’s preferences with the selling products and their brand is assured with the best retail loyalty program.
The consistent monitoring of the customer’s idea towards the purchasing products, behavior on online visits, social interactions through the loyalty programs, or communication platforms makes the retention as a strong one.
How Uplogic’s Strategies Changes Retail Business?
Generally, the retail sectors meet the number of transactions every day. Quicker transactions are one of the important changes observed with the arrival of loyalty programs. Besides, the remarkable changes listed as follows are happening widely in the market.
- Raise of Unique Solutions
The unique solutions are specified commonly are best-suit integration platforms, mobile wallets based payments, and enabling the notifications in a consistent way. The first one connects the customers with the retailers via digitally.
Nowadays, the connection may be in the form of QR code scanning and this is capable in both online and offline. With the simple scanning process, the customers earn the points for the respective purchase.
The second one is the wallet-based payment where they are the passes for the customers. With these, the customers can easily identify their place on in-store or app-based purchases. Besides, the information on loyalty cards earned, reward coupons, and the event tickets are also enabled to engage the customers in a huge way.
Enabling location-based push notifications is efficient for making the customers always connected with the latest products in the respective places. This way boosts the customer visits compared to the store-based purchases.
- Personalization Management
According to the research studies for on-demand solutions, 63% of the global customers expect the personalization in services as the most important one. This makes for huge competition among retailers.
Attracting customers with segregated offer statements within the application itself increases customer participation as more. The huge participation ultimately contributes to the revenue growth easily.
In a rare case, the customers also expect special options like the early access for upcoming products prior to reaching out to the market. With this, customer retention is stable compared to store-based purchases.
- Partnership Establishment
This one of the unique changes in the business arrived from the loyalty programs. Nowadays, the B2B models are contributing their growth by promoting their products among themselves. The retail loyalty programs incorporated in the retail business models allow the partners to promote their offers, and advertise the new items effectively.
The shaping of Retail Industry Towards Future Trends with Uplogic
Upon the single entry itself, satisfying the customers with interactive options makes them retain the business model continually for a long time. Over the specified period, they are turned to be loyal customers and bring new customers to the industry.
The advanced strategies followed by the Uplogic shape the retail business according to the future trends in the market as follows.
- Make Business Model Fit into Customer’s Interests
By using the retail loyalty programs, the customer interests are easily grasped and the business model gets updated with the new features immediately. Due to this, the entire business is made fit into the customer’s interests properly. In parallel, brand assurance is also proved as one with high-quality services.
How far you provide the cool purchasing experience throughout the business process decides the real success of the retail business against the market fluctuations.
- Valuable Product Services
When the new customer starts to purchase the products from the retailer’s module, they experience one way. While the new products have arrived, how far the retailers bring them into the customer’s portal decides the familiarity level of products among the customer side and purchases too.
Loyalty programs are a helpful tool to promote new products easily as soon as they arrive in the market. This way of shaping attracts a wide range of customers and turns them into loyal ones in a short time period.
Getting updated as per the customer demands is the recent trend and most important one for all types of retail business. The familiarity with loyalty programs is the essential one for the retailers to know their potential.
This blog illustrated the necessity of the loyalty program implementation on retailer business models, strategies followed in Uplogic to make the customer base as a strong one through effective loyalty software. If you own a retail business and need to upgrade with the effective loyalty program, send the queries to [email protected] to get unique solutions.