Boosting Customer Satisfaction with Loyalty Programs

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17.01.2022 news

If you’re not running a loyalty campaign for your customers, it might be time to launch one. Loyalty campaigns are a great way to connect with customers and give a little back to your most loyal customers. Everybody likes to feel rewarded and appreciated by a brand or retail, from individual shoppers who visit your store because it’s convenient to families who have made their shopping trip a part of their weekly routine.

Let’s take a little look at how loyalty campaigns can be used to boost customer satisfaction and make sure your best customers keep coming back.

What is customer satisfaction and why should you care about it?

Customer satisfaction is, as you might guess, a measure of how happy your customers are with the service you offer them. Just because they keep coming back to your store, it doesn’t mean they’re satisfied; they might choose to shop with you because there are no other stores nearby, or because yours is the only shop that sells a particular product.

But why does customer satisfaction matter if they keep coming back anyway, you might ask? If your customers aren’t satisfied with the service they’re getting, the ripple effect of this can be huge. If another store offering a better customer experience opens up nearby, you could lose half your customers in a single week. You’ll also regularly be missing out on gaining new customers if your existing shoppers aren’t happy enough with the service you offer to recommend you to their friends. 

The main point here is that if you’re not paying attention to how satisfied your customers are with your brand and services, the clock is ticking for you! Keep reading and get to know all about customer satisfaction and how you can improve this powerful relationship with them.

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How loyalty programs can help your business

A loyalty campaign is a marketing tactic that can be used to engage customers, improve customer retention rates, and boost return on investment. Really, a loyalty campaign is all about rewarding your customers and having them back to your store, encouraging the growth of a long-lasting relationship between customer and retailer. Rewarding customers is giving them not only a prize, but triggering emotions like happiness, surprise, and delight. In fact, research shows that consumers with strong emotional connections to a brand visit their stores 32% more often and spend 46% more money than those without emotional bonds. Loyalty campaigns are all about offering memorable experiences and bonding with customers. 

Designing a loyalty program that keeps your customers satisfied

So, loyalty programs are themselves designed to make sure your customers stay loyal to your brand. But how can grocery retailers design loyalty programs that increase customer satisfaction and make supermarket shoppers delight in shopping with them?

    • Create a loyalty campaign that’s personalized to your customers, showing you customers that you listen to their needs; this will foster emotional loyalty and will show them that you care about their interests. Loyalty goes two ways, and it’s important that your customers feel that they’re loyal to your brand, and your brand is also loyal to them. Customers are eight times more likely to be satisfied with a loyalty program if they’re satisfied with its level of personalization.
    • Pay attention to your loyalty campaign results. A loyalty campaign is the perfect way to engage with your customers. This also means that it’s a perfect opportunity for you, retailer, to understand more about your shoppers, your relationship with them and how they appreciate your programs. Paying attention to Key Performance Indicators from your loyalty program will give you insightful information about your customers and how they react to your marketing activities.
    • Use your loyalty program not just to reward, but to make your customers’ shopping experience more memorable and unique. The key element for keeping your shoppers engaged and happy with your brand is offering them memorable experiences. This means that your loyalty program will have to go out of the box and offer much more than just rewards. Your rewards need to be only the start point of an incredible experience that families won’t forget!

To find out more about how to engage and delight your customers with a loyalty program that’s tailored just for your store, get in touch with us.

 

Read more about UNGA’s services for grocery retailers.

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