The Holy Grail – Customer Loyalty … or is it?

Multinationals are using it, airlines have been at it for a long time, hotel chains all issue additional plastic cards and of course most supermarkets have a laser-like focus on it. Customer loyalty is the core focus of these behemoths and so should it be yours.

All is fair in love and war … but apparently also in the world of achieving and retaining customer loyalty. There are two main steps (also working in combination) to achieving customer loyalty;

  1. creating incentives to convert potential clients into paying customers and;
  2. keeping them in the ecosystem through any means possible

The incentives can easily become loss-leading, especially if a company is trying to decouple the customers from their current preferred supplier and the barriers to exit can be pretty stiff as well. A loss of loyalty status (platinum and diamond), losing discounts and entitlement to additional features (late check-out, free shipping, limited offers) are all designed to create a sense of loss. Customers are actually willing to spend more money with to achieve and maintain that coveted loyalty status. Clearly these are the very valuable customers and they will also provide a treasure trove of data that they leave behind in the loyalty ecosystem.

However, not all loyal customers are equal and not all loyalty programs provide anywhere near the same positive impact on the business. Data can make the difference here – it will allow you correctly identify which features of your loyalty program deliver and which customers are the best fit for you and your loyalty program.

Too often loyalty programs offer free items that even the most loyal customers are more than happy to pay for and those with the highest status place an inordinate amount of pressure on your client services resources. Given that those are limited by definition this means that other customers will receive an inferior product or service; effectively increasing the churn among customers, bad reviews on social media and so on. Pairing this with the entitlement often observed with loyalty customers it often becomes a race to the bottom.

Ada Beta has developed a number of building blocks that our partners can use to create a properly functioning loyalty program by focusing on the most valuable feature; the ability to use the data from inside the loyalty ecosystem.

Using this data we design a truly pleasant loyalty experience for customers;

  • adding personalised value-enhancement
  • using algorithm-based timing for referral programs
  • introducing optimisation modules for offering high-value, low-cost offerings

Together with our partners Ada Beta makes all your customers feel special!

If you would like to hear from us how we can take your loyalty program to the next level please contact us @ info@adabeta.nl