Running a business is a multidimensional undertaking, at the centre of which lies the customer. There are two categories of customers; potential leads and existing customers. Marketers have always been extra zealous to convert leads into customers than consolidating relations with the existing ones. Today, we’ll understand how a Loyalty Program helps sustain, retain, and nourish connections with existing users. 

But first things first, let’s acquaint ourselves with what a Customer Loyalty Program is –

What is a Customer Loyalty Program?

Customer Loyalty Programs have become a lead tool of CRM (customer relationship management) used by brands and businesses these days. Customer cashback apps involves incentivising and rewarding returning customers so that they stay with the brand. In slightly flowery words, it’s a business’s way to give back to customers who have been loyal to them.  

A loyalty program may offer free goodies, exclusive access to products, offers, and coupons to recurring customers. It also involves add-on benefits, privileges to customers through special deals, discounts, reward points, and vouchers. The purpose of the whole program is to make the returning customer happy and feel cared for by the brand. 

Countless studies have proved how returning customers contribute more to a business’s success than far and few in between leads. Taking advantage of loyalty programs can result in as much as 88% better profits when compared with brands that don’t. 

Which factors decide how effective a Customer Loyalty Program will be?

  • Ease & Convenience of Customers: The program shouldn’t feel like other technical paperwork they have to read through. The customer should be made aware of the program engagingly and should use it without any hassles. 
  • Awareness of Customers’ Interests: Careful analysis of consumer analytic reports gives a clear picture of what customers like and respond to. This information is a million-dollar insight because you can later base your entire program on these points.
  • Keeping it Interactive: Keep the communication and exchange open both ways to make customers feel an integral part of your business. Constantly seek their feedback and suggestions to not only serve them better but make them feel important and valued. 
  • Keep something to Attract New Customers: A brand should keep redefining parts of its programs to make them tailor-made for a particular group. Creating offers to entice potential leads through the loyalty program can also give fruitful dividends. 

Sure-fire Benefits of Consumer Loyalty Programs

  1. Consumer-Brand Identification: Once you’re able to win over the customer, the customer starts priding himself being identified with the brand. This ensures loyalty for a long time.
  2. Business’s Growth: Several credible reports show how a working loyalty program can increase a brand’s market size by 20%. This is a significant number, especially when seen comparatively with leads to customer conversion numbers.

Now let’s undertake a case study where we witness hands-on how Fave created a great customer loyalty program. 

How Fave aced the Customer Loyalty Program in Malaysia using FavePay:

Fave is an online shopping payment aggregator that offers QR code enabled payments and gives cashback in return.

Fave went one step further through FavePay in Malaysia. It seeks merchants who want to offer their customers loyalty programs but without cumbersome processes. For example, Fave offered 20% cashback to returning customers on their next visit.  

Already boasting a subscriber base of 3+ million in Malaysia, Fave guides these customers to their desired shops and outlets. 

To meet the needs of different merchants differently, Fave has two programs: FaveDeals and FavePay! Through FaveDeals, Fave hopes to earn new customers, while FavePay is based on a loyalty program by offering cashback. 

Fave’s plans towards building an inclusive future 

Fave has plenty of international brands onboard, and Fave also wants to partner up with as many street shops as possible. 

Fave has an aim of shifting as many local businesses online and improving their services. FavePay has already helped hundreds of local shops, retailers, and companies go cashless. 

The loyalty program by Fave is designed to help merchants increase their sales by making them technologically sound and adept.