How to build loyalty throughout the customer life cycle
Posted: Mon Dec 09, 2024 10:19 am
“Loyalty marketers will be most successful if they seek out new opportunities to engage with prospects and existing customers, and engage with them at every stage of the lifecycle.” (Forrester)
Successful brands are increasingly student database applying loyalty marketing strategies throughout the entire customer lifecycle. They do this to increase consumer engagement, strengthen their relationship with customers, and increase the value they perceive from their loyalty program. At redk, we have developed a practical guide to building long-lasting customer relationships.
Forrester has designed a framework that divides the customer lifecycle into seven stages. It's designed to help companies move away from one-off transactions and focus on building rapport with customers at each stage. Here's what you need to do at each stage.
1. Discovery: Attract and engage potential customers
At this early stage, it’s important to promote your loyalty program. This is what supermarket giant Tesco does, advertising its Clubcard rewards program in a prominent space on its website. This program is considered, according to a recent survey , and by 65% of consumers, to be the most attractive loyalty program in Great Britain. On the other hand, it is essential to clearly communicate the values of your brand: in 2021, a survey in the United Kingdom showed that 82% of customers were more likely to be loyal to a brand whose values aligned with their own.
2. Evaluation: simplifying decision making
To help potential customers, you can use tools such as questionnaires, detailed clothing size guides or product comparison tools. These also allow you to gather information that you can then use to offer them more relevant and personalized offers. For example, supermarkets and restaurants can ask new members of loyalty programs about their preferences, intolerances or interest in vegetarian and vegan options.
According to Forrester, 64% of American adults compare multiple products online before making a purchase, while 38% of them say they feel overwhelmed when they have too many options.
3. Commitment: Overcoming customer concerns and doubts
This phase is critical, as a poor customer experience during the first purchase can mean losing that customer forever. Make the checkout process as smooth and fast as possible: offer payment methods that customers are already familiar with and give them different options, such as “buy now, pay later.” Introduce your loyalty programs to your customers at key points in the process, and allow the option to sign up with a single click. Giving incentives for creating a customer profile will then allow you to offer personalized benefits to different consumer groups. Many brands, such as New Look, offer discounts to specific segments, such as students, healthcare workers or military personnel.
4. Initiation: teaching customers the value of loyalty
In the post-purchase phase, you should inform the customer of the status of their order with a confirmation email that includes details about the shipment. Additionally, whenever possible, you should give them the option to track their package. This is also a good time to ask customers if they want to provide you with zero-party data (data that is expressly shared with a brand), such as their favorite clothes or music tastes, so that you can further personalize future communications with them.
Successful brands are increasingly student database applying loyalty marketing strategies throughout the entire customer lifecycle. They do this to increase consumer engagement, strengthen their relationship with customers, and increase the value they perceive from their loyalty program. At redk, we have developed a practical guide to building long-lasting customer relationships.
Forrester has designed a framework that divides the customer lifecycle into seven stages. It's designed to help companies move away from one-off transactions and focus on building rapport with customers at each stage. Here's what you need to do at each stage.
1. Discovery: Attract and engage potential customers
At this early stage, it’s important to promote your loyalty program. This is what supermarket giant Tesco does, advertising its Clubcard rewards program in a prominent space on its website. This program is considered, according to a recent survey , and by 65% of consumers, to be the most attractive loyalty program in Great Britain. On the other hand, it is essential to clearly communicate the values of your brand: in 2021, a survey in the United Kingdom showed that 82% of customers were more likely to be loyal to a brand whose values aligned with their own.
2. Evaluation: simplifying decision making
To help potential customers, you can use tools such as questionnaires, detailed clothing size guides or product comparison tools. These also allow you to gather information that you can then use to offer them more relevant and personalized offers. For example, supermarkets and restaurants can ask new members of loyalty programs about their preferences, intolerances or interest in vegetarian and vegan options.
According to Forrester, 64% of American adults compare multiple products online before making a purchase, while 38% of them say they feel overwhelmed when they have too many options.
3. Commitment: Overcoming customer concerns and doubts
This phase is critical, as a poor customer experience during the first purchase can mean losing that customer forever. Make the checkout process as smooth and fast as possible: offer payment methods that customers are already familiar with and give them different options, such as “buy now, pay later.” Introduce your loyalty programs to your customers at key points in the process, and allow the option to sign up with a single click. Giving incentives for creating a customer profile will then allow you to offer personalized benefits to different consumer groups. Many brands, such as New Look, offer discounts to specific segments, such as students, healthcare workers or military personnel.
4. Initiation: teaching customers the value of loyalty
In the post-purchase phase, you should inform the customer of the status of their order with a confirmation email that includes details about the shipment. Additionally, whenever possible, you should give them the option to track their package. This is also a good time to ask customers if they want to provide you with zero-party data (data that is expressly shared with a brand), such as their favorite clothes or music tastes, so that you can further personalize future communications with them.