Why a digital customer loyalty program is essential for every brand

Being successful with your own brand requires not only a sure instinct, but also expertise in a variety of areas. One of these is customer loyalty. Depending on which study you look at, regular customers generate between 30 and 70 percent more turnover. 80 percent of companies that measure the ROI (return on investment) of their customer loyalty program report a positive ROI, i.e. they achieve an average of 4.9 times more turnover than they spend (Antavo). Successful brands rely on digital channels for customer loyalty. We have summarized the most important reasons for this:

1. strengthen customer relationships
2. real-time customization
3. gain valuable insights into customer behavior
4. personalize customer journeys
5. increase customer lifetime value
6. communicate effectively
7. reduce costs

1. strengthen customer relationships

Compared to physical customer loyalty programs, digital offers another place to get in touch with customers at any time. As digitalization progresses, brands can interact and maintain contact with their customers via various platforms such as their own app, loyalty card apps and wallets. Strong and long-term customer relationships can be built through increased points of contact.

2. real-time customization

Do you want to boost sales at short notice or do you have a new product in your range that you want to present to your customers immediately? With a digital customer loyalty program, you can publish your offers and promotions immediately. 

3. gain valuable insights into customer behavior

Digital customer loyalty programs not only allow content to be played out quickly and efficiently. Valuable data on customer and purchasing behavior can be obtained and analyzed just as quickly. This allows you to better understand your customers and adapt your marketing strategies accordingly.

4. personalize customer journeys

From initial research to purchase, customers go through a wide variety of steps. Digital customer loyalty programmes help brands to accompany their customers on the path to conversion by means of personalized customer journeys. By integrating automatic data analysis and artificial intelligence, even in real time. Tailored content improves the user experience, increases conversion rates and strengthens the customer relationship.

5. increase customer lifetime value

Customer lifetime value measures the value of a customer over the course of their relationship with the company. Brands that work with digital customer loyalty programs achieve a better customer lifetime value than those that rely purely on traditional forms of customer loyalty. The reasons for this are higher brand loyalty and increased purchasing behavior, which in turn is associated with the digital touchpoints between customers and companies. 

6. communicate effectively

Digital loyalty programs can use different communication channels including their own, loyalty card apps and wallets to interact with customers. By using different channels, brands can ensure that they reach their customers through the channels they prefer and maximize the reach of their communications.

7. reduce costs

Customer acquisition is always more expensive than customer retention. Digital customer retention is cheaper than physical customer retention. You want a comparison? You can find it here: Digital Customer Loyalty vs. Physical: The Comparison Makes You Sure. By investing in a digital customer loyalty program, brands can reduce costs in the long run by helping to retain existing customers and increase their loyalty.

Every brand should implement a digital loyalty program to strengthen customer retention, increase customer loyalty and build long-term relationships. With us and our mobile loyalty and rewards platform mobile-pocket, you have a competent partner at your side to enter into digital customer loyalty and promote the long-term growth of your company. See for yourself and contact us.