Understand the use of loyalty schemes in CRM

 Use of Loyalty schemes in CRM

Loyalty schemes do play a very vital role in the implementation of CRM. Organizations do consider loyalty schemes in order to retain and motivate the existing client base. Loyalty programs could be further implemented using loyalty card, Reward card which looks similar to a credit card and is given to the people(s) who are regular or permanent customers to the organization, such kinds of programs based upon loyalty motivate the customers to become a permanent part of the organizational customer base and this feeling of special, makes their association even more stronger with the brand which leads to happy customers which can bring in more potential business for the company.

Use of Loyalty schemes to gain information about customers

Loyalty schemes are indeed of great benefit to the organizations as well as the clients, many organizations promote the loyalty program by associating reward points with the same, which means that if a customer brings in referral to the company than company will offer reward points which could be used for a big discount or any type of free service to be availed from the company. Use of such programs also provide highly important information related to the following fields or areas-

·         Consumer trends

Loyalty schemes help in determining the exact demand which exists in the market, since loyalty programs brings the customer and the organization communication to a higher platform with lessening of the gap, so it ultimately helps the company to analyze the exact thing or the value proposition which the client expects and has a higher acceptance level towards accepting it.

·         Feedback

Loyalty schemes act as a major way to get the honest feedback from the market in terms of what people think about the particular service or product offered by the company. This feedback brings in crucial information regarding the changes which the company should implement in order to make the service or the product offering more acceptable by the target audience, Feedback in general helps the company to improve its product, services and most importantly the processes.

·         Customer Tastes and preferences

Customer’s tastes and preference s are dynamic in nature and do keep on changing with time, hence it becomes most important for a business concern to focus on these changing needs so as to upgrade the products and services in the flavor of demand in the market, this will help the organization to get useful information required to remain updated in the market and come up with new things which are demanded by the target audience.

·         Generalized information about the customers

Loyalty programs give an opportunity to the customers to share their experiences with the band, apart from that it also helps in giving general information related to social, economic, demographic and cultural factors influencing the business trend.

·          Competitor analysis

Loyalty programs help in analyzing the competitors move in the market so that effective strategies could be developed in order to face the competition. Such information is very crucial for the business success in the market.

Along with this a lot of crucial statistics and information regarding the customer spending patterns and the effectiveness of the marketing and promotional activities carried out by the company for the acquisition of the business.