Membership, subscriptions, loyalty, and marketplaces as a service
Loyalty and member program development as a Service.
The popularity of customer loyalty programs has spread to such an extent that they seem almost ubiquitous now in many business verticals and across the world. The hotel, airline, BFSI and retail industries, particularly, have recognized the immense value of having a repeat purchaser of their products or services. Axacraft has helped design and develop loyalty and membership programs used by millions of people on a daily basis.
Companies deliver their loyalty programs across offline and online channels, but do customers get an integrated experience?
Most companies have basic transactional loyalty programs, where rewards are based primarily on purchases. Almost 90% of social media sentiment towards loyalty programs is negative. The problem is, most companies have basic transactional loyalty programs, where rewards are based primarily on purchase. Axacraft has studied, and more importantly, helped to design membership and loyalty programs with millions of enthusiastic daily members.
It starts with understanding the key reasons for negative sentiment on loyalty programs.
Lack of Reward Relevance,
Flexibility and Value
Rewards not aligned to consumer preferences.
Rigid reward mechanisms –long lead times before consumers become eligible to claim benefits, no rewards for referrals.
Cross-selling and driving sales appears to be the chief motive behind loyalty programs rather than providing value to consumers.
Lack of a Seamless
Multi-Channel Experience
Lack of adequate redemption mechanisms –users unable to redeem rewards through channels of their choice.
Poor user experience on mobile apps and websites (complex navigation, outdated information, inability to redeem rewards, software compatibility issues).
Loss of loyalty points and delays in crediting benefits due to technical errors in linking rewards with online accounts.
Customer Service Issues
Long call wait times, multiple transfers to customer service representatives before an issue is resolved.
Unpleasant experiences during direct interactions with service representatives such as gate agents at airports and in-store staff.
Call center representatives unaware of issues with online channels (ex: incorrect information on website).
Why work with Axacraft to design and develop your customer loyalty program?
Customer retention
Knowing it costs 5 times as much to acquire new customers and that a 5% increase in customer retention can lead to a 25% increase in profit, savvy marketers are focusing on Customer Lifetime Value (CLV) to assess whether programs are driving increased revenue.
Enhancing the satisfaction level of customers
Our suggested programs always recommend getting feedback from participating customers to ensure they see the benefits.
Garnering insights through their repeat purchase behavior
The ability to segment and personalize offerings is a critical component in high-performance marketing programs. We should our clients how to capture and act on the insights.
Increased revenue and profitability
There is a massive opportunity for brands that strategically leverage their data –according to BCG, redirecting 25% of mass promotion spending to personalized or dynamic offers would increase return on investment (ROI) by 200%.
Deploy world-class loyalty, subscription and membership programs efficiently and cost-effectively.
The cost of setting up and managing a customer loyalty or member program can be considerable. High costs to identify the right program structure, employee training and development of supportive technologies can strain corporate budgets. Getting it right the first time rarely happens. Given our prior experience, Axacraft already has the technology and experienced "membership & loyalty athletes" who can help with everything from program mechanics, program roll-out, customer care and IT considerations.
Loyalty programs have not evolved with the digital age.
Cross-channel redemption
Only 24% offer redemption through mobile apps.
Only 9% offer integrated redemption across offline and online channels.
Personalization of loyalty programs
Only 11% customize rewards based on purchase history.
Only 11% provide location-based offers.
Engaging the customer
Only 16% reward customers for activities such as providing ratings, reviews or referrals.
Only 14% have gamification-linked rewards.
Loyalty and member program development as a Service.
Design
Obtain a contexual view of customer needs and behaviors.
Upgrade reward mechanisms to recognize and reward engagement.
Set up adequate safeguards for data privacy.
Implement
Integrate teams to breakdown silos.
Set up an integrated technology platform.
Strengthen the mobile channel build predictive behavioral models.
Mobilize customer facing teams.
Measure
Establish appropriate metrics to measure success.
Combine operational metrics (ex: enrollment and redemption rates) with engagement-based metrics (ex: time spent online or in-store, social media sentiment).
Iterate
Continually evolve program based on changing customer needs work with a test-and-learn approach to change rapidly.
How should organizations develop loyalty programs that drive customer engagement?
Design
Obtain a contexual view of customer needs and behaviors.
Upgrade reward mechanisms to recognize and reward engagement.
Set up adequate safeguards for data privacy.
Implement
Integrate teams to breakdown silos.
Set up an integrated technology platform.
Strengthen the mobile channel build predictive behavioral models.
Mobilize customer facing teams.
Measure
Establish appropriate metrics to measure success.
Combine operational metrics (ex: enrollment and redemption rates) with engagement-based metrics (ex: time spent online or in-store, social media sentiment).
Iterate
Continually evolve program based on changing customer needs work with a test-and-learn approach to change rapidly.
How Axacraft has helped drive customer loyalty and membership effectiveness.
Development of enabling loyalty technology core.
Design journeys, select or integrate client technologies with the company’s data sources and marketing channels.
Creation of individualized offers at enterprise scale.
Help clients create hundreds (or millions) of offers each week across multiple offer types. Each type of offer can be constructed with dynamic actions and rewards to improve certain customer behaviors including frequency, category exploration, cross-sell and upsell.
Continuous learning and optimization over time.
Machine learning can be applied to client's customers’ data and their customers’ interaction patterns (or lack thereof) to optimize offer individualization and offer selection.
Synchronize cross-channel experiences.
Deploy individualized offers across channels including email, mobile app and push notifications.
Improve the customer experience.
Allow customers to see their progress in real-time, with their unique offers and status reflected in web or mobile apps.
Dramatically increase execution speed and reduce manual work.
Enable clients to automate many facets of the offer process, including development and measurement. This leads to dramatically faster operations and improved operational efficiency.
Conduct advanced experiments.
Unlock rapid experimentation capabilities, enabling clients to incrementally and reliably test initiatives and program effectiveness in the market.
Measure impact.
Enable clients to track and measure results to provide detailed attribution reporting against key performance indicators (KPIs).
Are you ready to start your brand’s journey toward a dynamic, personalized loyalty program?
Let Axacraft help your company set a new bar for what a powerful customer loyalty program should do for both customers and the brand, and reap the benefits in the process.
