Is customer still the King?

Rakesh Jaitly, Senior Sales Director, Oracle Applications, highlights three customer loyalty strategies that organisations need to implement in an era of changing consumer preferences and expectations due to the impact of COVID-19 and the lockdowns.

Consumer preferences and expectations are changing as a result of modifications in their purchasing habits. According to a McKinsey survey on Indian consumer sentiment, a vast majority of Indian consumers tried new shopping behaviours and digital habits during the pandemic and are expected to continue doing so. The survey revealed that around 30% consumers say they will decrease spending on discretionary categories, while up to 25% suggested an intent to shop online even post COVID-19. Additionally, 94% participants reported that they have changed stores, brands, or the way they shopped. Considering that 76% of Indian consumers have still not resumed normal out of home activities, organisations need to reward customers for their new shopping habits and preferences by implementing one of these three customer loyalty strategies:

Increase engagement by implementingdata-driven, cross-channel strategy

Given the changing consumer preferences, it is crucial to acknowledge and reward customers through multichannel marketing, by utilising tools and processes to analyse customers and their behaviours. For instance, adopting a loyalty programme that allows you to collect customer data from all touchpoints or channels will provide customer insights which could be used for designing customer reward programs. Under these programs, customers are rewarded when they buy from a brand in-store or online and participate in any engagement activities, such as questionnaires and surveys.

Also, optimise the mobile experience through customer engagement tools. The use of mobile devices increased during the peak of the global health pandemic in 2020, providing retailers with a massive opportunity. According to the Ericsson Mobility Report 2021, the net addition of mobile subscriptions during Q1 2021 was 59 million worldwide. India had the most net additions, at over 26 million. While customer expectations from brands have not changed, digitisation has transformed the way those expectations are met. When you make your loyalty program mobile-friendly, you can reach customers on a device they already own, making participation and engagement with your brand easier and more convenient.

Personalise experiences to boost customer loyalty.

Personalisation is extremely relevant for brands seeking to not only engage customers, but also increase repeat purchases, drive sales, and increase conversion. Customers ranked companies 20% higher when the level of personalisation was high versus. Low, when asked to rate a specific retailer. Starbucks has one of the most effective loyalty programs, providing members with freebies and discounts. As a result, they reached more than 20 million loyal members in 2020 itself. Similarly, in the Indian market, Titan approaches loyalty holistically across all its brands (Tanishq, Fastrack, Titan Eye Plus, etc.) through a common platform known as “Encircle”.

Brands that map out the customer journey can create highly personalised experiences for their customers. This preliminary step may assist you in identifying touchpoints for your customers as well as determining how you can customise each interaction to reduce friction and add value. Focus on a new customer’s journey so you can shape your brand’s messaging and offer strategies to build long-term loyalty early on. Analyse any changes you notice with repeat customers so you can try a new, creative approach. Consider how you can use the loyalty program data you collected to create highly personalised customer experiences in every customer interaction. During this period of social distancing, fill the void left by traditional in-person experiences by innovating ways to connect with customers and recreate in-store experiences. For example, augmented reality can allow consumers to interact with products they are considering, and online chat can help fill the void left by in-person interactions.

Trace the customer experience throughout the journey

Determine the pain points you will need to address throughout the customer journey by determining what customers think and feel, as well as what they do at each stage. According to a consumer loyalty study conducted by Wharton Baker Retailing Center and WisePlum in 2020, customers who experienced problems while shopping were 35% less loyal than those who did not face any.. Leading retailers strive to alleviate pain points by offering convenience, and an incentive to spend more and buy more frequently. As a result, consider providing contactless return policies and expanding support channels across phone, email, and social media.

Furthermore, subscription-based models can provide customers with greater value and convenience from a brand, through exclusive benefits such as free shipping. These are benefits that you can provide to loyalty members for free or at a cost in exchange for signing up and spending with the brand. Loyalty programmes and subscription-based models both allow retailers to collect data over time to help inform their acquisition and retention strategies. Building customer loyalty entails thoughtful and positive interactions with customers at each touchpoint along their purchasing journey. When you design and implement customer loyalty activities that incorporate data, strategy, and optimisation, you will most likely see a return on your investment.