For an intro to this article I will like to acknowledge the creators of Qiibee loyalty program, truly it isn't an easy job getting a customer and then giving the customer a reason to stay with your establishment or company. When we take a close look at the word loyalty program what comes to our minds will always be free rewards, get that *free rewards*, now every other thing beyond that is really vague. A customer is always thrilled when they have a clue that for whatever it is they do there might be a possible reward just sitting and waiting at the other side, this is where https://qiibee.com/ comes in.
From the website we find out that there is a strategy behind Qiibee. Its really basic and simple once you get a hang of it.https://tse3.mm.bing.net/th?id=OIP.V04hQGbhY22az_GkAlUdDwHaE3&pid=15.1&P=0&w=230&h=152
Since their inception more than 100 years ago, loyalty programs have changed the way consumers interact with the companies from which they purchase products or services. From review of history one of the earliest moves made to win the hearts, minds and wallets of customers was the S&H Green Stamp program, originating in 1896. To encourage loyalty program, customers received tiny stamps when they made purchases from participating merchants, glued them onto pages of booklets (known as “alternative currency”) and redeemed them for products when the accumulated stamps had attained a certain value. Just how popular was the program? S&H Green Stamps once issued three times as many stamps as the US Post Office, and by the 1960’s, S&H was the largest purchaser of consumer products in the world.
Another well-known early loyalty program was General Mills’ longstanding Betty Crocker Points Program in which customers collected points which were redeemable for kitchenware from a catalog. As the story goes, it all started with a teaspoon tucked into boxes of Wheaties in 1931. General Mills then put paper coupons into packages of Gold Medal Flour and other General Mills brands. Ultimately, point values were printed on the outside of boxes. (Quoted: http://www.futureofbusinessandtech.com/business-solutions/the-history-and-future-of-loyalty-programs)
From the website Qiibee.com they have a rich content which has a breakdown, with Quarter 1 having seed closing of approximately $3.2 million, Quarter 2 having conducting of brand role out in countries and getting over 2 million customers, Quarter 3 will be having publishing of developer kit and finally Quarter 4 will be the revolution of conducting loyalty on the blockchain conference.
Brands such as superdry, Dominos, Dunkin donuts, Zalando, Burger King and so many more use loyalty program to keep their customers coming back for more, its a welcome and strategic plan carried out to meet customer satisfaction and also maximize profit of the company.
Benefits of loyalty program
There are many loyalty programs but I will focus on 5
Stop competing on price with competitors
Retain existing customers
Increase Customer Lifetime Value
Build personal relationships
Create brand advocates
Stop competing on price with competitors
Today it’s easy for discerning shoppers to compare hundreds of prices in a few clicks. If they are just thinking of the products you sell instead of your store and brand, then you will find yourself in a pricing race to the bottom, where large stores like Amazon will win.
Adding a loyalty program stops you from competing on price by giving you another way to differentiate your store: you can offer an enhanced customer experience by connecting with their emotions. Let’s elaborate on that here.
Studies have shown that when a customer makes a purchase it’s highly emotional. If you sell a product that people buy through desire instead of necessity then appealing to their emotions is key. A loyalty program gives you a way to surprise and delight customers by rewarding them for something that previously went unnoticed. Every time you reward your customers for their shopping activities (sign ups, referrals, purchases etc.) you will appeal to their emotional side and start building a connection with them.
As the emotional connection builds, shoppers will see you as more than a collection of products which will strengthen their loyalty.
- Retain existing customers
Loyal customers spend 67% more than new ones. This is a statistic that cannot be ignored, especially when the Chartered Institute of Marketing lists a variety of sources that site customer retention costs between 4 and 30 times less than customer acquisition and that a mere 5% lift in retention can increase your profits by a staggering 85%.
source: https://marketoonist.com/
These figures are hugely significant, and highlight that retention is one of the most cost-effective ways of increasing your profit margin.
- Increase Customer Lifetime Value
Customer Lifetime Value (CLV or CLTV) is the net profit attributed to the overall relationship you will maintain with a customer. It measures how valuable the customer is to you now and the projected value of all your interactions with them in the future. A loyalty program can help you calculate exactly what the CLV is for each of your customers, and help you wield those statistics into usable data for implementing solid strategies to retain your customers.
For instance, a loyalty program can provide you with behavioural data of your customers’ buying habits. We talked earlier about how making purchases is emotional, so this data is vital. Your store’s data is like a pile of bricks ready to be assembled; a loyalty program can guide you and make sense of this data on both macro and micro levels. Put simply, this means that you can monitor the steps your customers are taking before they purchase, allowing you to reward them at each step of the shopping experience so that you can increase your customer lifetime value.
Source: https://s3.amazonaws.com/lowres.cartoonstock.com/
Build personal relationships
The first step to this emotional connection and store loyalty is by showing your customers that you truly value them. The company believe that this can be achieved by building genuine relationships with your customers – your customers are unique so treat them this way.Create Brand Advocates
It is a mistake to think that your only valuable customers are the ones spending money, in fact, some of your most valuable customers won’t be the ones spending money but generating it. These customers are what we refer to as brand advocates, and they are the ones referring your store to their friends, family and if they are on social media, their followers. The importance of this cannot be overstated; 73% of millennials feel it is their responsibility to help friends and family make smart purchase decisions, and word-of-mouth is the primary factor for 20-50% of all purchasing decision.
The company's refer-a-friend feature, has a two-way reward system which is proven to be the most effective. For example, if your customer refers a friend one might earn points and the other a discount off their first purchase. This will work towards both customer acquisition and increasing the loyalty of your existing customers. @OriginalWorks contest.
From Qiibee's perspective i'll say they've come to realize that keeping the customer's mind healthy and tilted towards the company is the best idea to keep the customers coming back for more.
Source: cdn.steemitimages.com
keep up the good work qiibee, i'm sure the sky and beyond is the limit for this loyalty program.
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