A Complete Solution for Customer Loyalty Strategy

July 17, 2019

If you are like most marketers or entrepreneurs, you work every day to optimize your business and create a unique brand that sets you apart from the competition. You need to give customers a reason to choose you over one of your competitors not just once but repeatedly.

According to HubSpot, having a customer loyalty program benefits both the business and its customers. 

More than two-thirds of consumers (69%) say the choice of retailer is influenced by where they can earn customer loyalty/rewards program points, and a 5% increase in customer loyalty can increase the average profit per customer from 25% to 100%.

Winning customer loyalty is key to long-lasting business success, but 61% of retailers say customer retention remains their biggest obstacle. 

Loyalty programs are becoming increasingly popular – People love discounts! However, if the program doesn’t offer sufficient incentives, it can actually harm the customer retention rate. 

This makes it important for businesses to think through their loyalty program strategy, develop a customer-first strategy, and make sure it targets the right audience and offers the right incentives.  

How to Attract Customers

Before businesses can retain customers, they must first attract them. 

Business owners should ask themselves: 

  • How can we build high-quality long-term relationships with our customers?
  • What marketing tools apply specifically to our business? 
  • How can we win loyal customers?

For answering the first question, we will delve a little into the theory on the example of retailers. There are three ways to attract customers:

#1 Loyalty Program Coalition

The first strategy is to build a loyalty program coalition among other stores or retailers. Using this approach, there will be only one loyalty program customers can use at multiple stores. 

For example, Old Navy, Athleta, Banana Republic, and Gap is an example of a coalition.

Here’s how it works: The customer has one “bonus card”, which he or she can use in all of the stores included in the coalition. 

This offers the customer with greater flexibility.  

#2 Add-On Services

The second strategy is to create additional services that increase customer loyalty. An additional service is one that creates value and is something your customer can afford or is free. 

Including customer reviews on your business’s website or exceptionally fast customer service are examples of add-on services. 

Reebok, for example, includes reviews on products on its website.  Reebok provides customer reviews of its products on its website.


It also allows visitors to sort reviews based on the most relevant, helpful, and recent. This gives Reebok’s brand greater transparency and encourages customers to trust it.  

By offer add-on services, you benefit by: 
•    Owning the ecosystem with its own accounting and data analysis
•    Immediately implementing customer feedback to quickly see an impact 
•    Getting analytics and data on customer data

Add-on services benefit both you and your customers

#3 Website and Mobile App Offers

The third is an aggregator that collects a large number of local participants' companies. Among many choices, a website or a mobile aggregator application gives a customer the best personal offer. 

One of the main advantages of this approach is that once customers are registered in the app, they can receive a certain number of small rewards such as discounts or cashback. 

How to Combine the Benefits of Different Customer Recruitment Strategies

All these solutions can increase your customers’ loyalty and encourage your customers to make more purchases. However, each system has its drawbacks. 

Coalitions, for example, are more likely to attract customers than retain them. 

On the other hand, add-on service strategies only work with the existing customer base. 

Finally, the mobile app aggregator is difficult to personalize for customers. 

Our team at Omega-R considered the benefits and drawbacks of the approaches and decided to create a system that combined most of the marketing tools entrepreneurs need and could be applied to the B2B or B2C sector. 

If you have a complete set of the tools for segmentation, analytics, and communication, you can create a mass offer or personal custom offers. 

Our solution will help the marketer of any level understand how to retain the customer and adjust the user experience.

Omega-R's customer loyalty solution combines the benefits of three popular customer retention approaches and minimizes their drawbacks.

All analytics both for an individual and a group of customers is presented in the form of dashboards as a whole.

For convenience, we also have implemented a chatbot that will help a call center. This will reduce the cost of maintaining a staff of operators as well as the waiting time of a customer to get a response. 

Mobile Apps and Machine Learning Algorithms Can Help Businesses Plan Ahead and Communicate

Artificial Intelligence or machine learning algorithms can help businesses choose the most suitable customers for promotions or the most suitable promotion for specific customers. 

Sometimes, the findings of the algorithm may surprise even an experienced marketer.

Every business should have a mobile app to communicate with customers and present offers. 
Having a mobile app for your customer loyalty program can help you keep track of important metrics and offer personalization.

Mobile apps and systems make it easy for AI to suggest next steps to businesses, give rewards to customers, and help businesses increase revenue. 

For example, after we released our system, our partners conducted research on its effectiveness. They invested $1,200 and used it for 4 months. 

By the end of their trial, the number of repeat purchases increased by 7% and the average transaction value increased by $2 which led to increased revenue of $30,000. 

Businesses can achieve an ideal loyalty program and win loyal customers but first, they have to abandon old tactics that don’t consider consumers’ interests. 

In the end, it all comes down to the personalization of the offer. A business should know what customers want and what they will respond to.

Choose the Best System for Your Loyalty Program

We created a tool that analyzes the entire marketing flow of your business and simplifies all the mechanisms of interaction between B2B and B2C business. 

Loyalty marketers who couldn’t see mobile phones as another communication channel squandered the immense opportunity to reach, attract, and improve experiences for their loyal customers.

Enabling a mobile loyalty strategy literally puts your brand and your loyalty program in the hands of your best consumers and creates potential for more interactions.