“The global loyalty management market size stood at USD 2.47 billion in 2019 and is projected to reach USD 10.02 billion by 2027, exhibiting a CAGR of 19.9% during the forecast period.”
The figures look promising and impressive.
But what is it that’s holding back the loyalty marketing and management industry in 2021?
Is it the digital explosion that took the world by storm in the Covid-19 era? Is the industry impacted by increasing competition and how brands and customers are running for cover?
The Current Scenario
Even today, customer acquisition remains to be an important area of concern. Most marketing teams are focused on getting hold of new customers and increasing their growth. But there’s an equally important area of concern that has emerged because of the Pandemic. That of finding new ways to increase customer loyalty and retention rates.
The need of the hour is to onboard and auto manage customers with end-to-end, AI-enabled multi-level loyalty programs. However, there are some strings that are holding back this industry from reaching its deserving heights.
There are many decision-makers who are still wondering about the importance of a loyalty program to grow and retain loyal customers.
Reward programs, points, and discounts are often badly-structured and lack integration. They fail to influence online interactions and the purchase behavior of new and existing customers.
The efforts for acquiring new customers (to enable future growth) takes up a big chunk of the budget and time resources.
Given these constraints, boosting customer loyalty has become an ongoing challenge for marketers.
Importance of Loyalty Marketing
Loyalty programs are used for increasing sales and revenue. This is because repeat customers are likely to come back for higher spending. They repurchase more, are ready to try new offerings, and don’t hesitate in referring the companies they are loyal to.
According to NeuroTags, developers of loyalty marketing and management programs in India, even if customer retention is increased by 5%, profits can rise by 25% to 95%. No wonder, it has now become imperative for organizations to use smart incentive plans to cut competition.
How do Businesses Maintain Customer Loyalty?
A well-designed and properly-integrated loyalty program can have far-reaching, positive impacts on customer loyalty and business profits. To attain this end, businesses strive to make their customers feel special and recognized. This, in turn, leads to better retention, more referrals, and higher profits. Giving out regular rewards increases user engagement; they make customers feel wanted and valued.
What Types of Businesses Use Loyalty Platforms?
Any business, whether it deals in high or low-frequency purchase items, may invest in a loyalty marketing strategy. Are you dealing with high-frequency purchase items like electronic accessories, fashion apparel, nutraceuticals, cosmetics, spirits, and wine or auto parts? The loyalty platform you create has to focus on making customers return for timely replacements of their purchases. When they return, you should be able to cross-sell other items available in a range. Moreover, your loyalty rewards programs should encourage constant referrals and engagements.
E-commerce companies established brands, and SMEs are all looking for better loyalty programs and platforms to keep their customer base intact. In 2021, it has become critical to retain the loyalty of retailers, distributors, end consumers, and influencers. To combat this, integrated marketing automation strategies are being used to re-engage customers and influence them constantly.
Invest in a Loyalty Marketing and Management Platform
Do you need a top-rated loyalty platform for easy onboarding and redemption of customers? The custom-made platforms developed by NeuroTags promote PoS independent loyalty onboarding and have numerous redemption options. Their loyalty marketers know how to develop the right kind of platform to increase loyalty life cycles. They encourage re-engagement and personalized communication in the most seamless of ways.
Take your business to the next level; request NeuroTags for a free demo for their marketing automation and loyalty platform, today.