We all know that selling to an existing customer is several times cheaper than acquiring a new one. Meanwhile, many companies still don’t use the potential of loyalty programs. Why? Because they don’t know how to deal with common blockers.
Difficult to predict customer needs
What best motivates your customers to purchase again? Determining it can be very hard. The necessity of conducting market research deters from going into loyalty programs. Instead of going into extensive market research, just start with MVP and then adjust benefits for clients, doing tests and experiments.
Costful stage of analysis and design
Loyalty programs are often designed by specialized consulting companies, charging tens of thousands of euros for helping to reach consensus. Meanwhile, you can suggest everyone take part in one workshop where you will present a demo of the ready-made software. This will facilitate reaching consensus – a discussion on what everyone sees instead of an abstract conversation.
ROI difficult to estimate
If you would like to create a dedicated software, you need a minimum of several months of work and a minimum of tens of thousands of euros for that. It is difficult to assess ROI of a program before it starts, so it’s difficult to justify expenses for implementation. The wisest thing to do would be to reverse the process – to start a loyalty program quickly and cheaply and see what benefits it generates in the basic version. It is much easier to develop a program that already brings profits.
Full integration of all systems
Extensive loyalty programs require full integration of all systems. What can help you in this case? In Open Loyalty we have developed some interesting ways of onboarding and calculating points. Most of them don’t require integration or require only minimal integration. No need for changes to POS or ERP systems. Contact us to arrange a presentation of our ideas for bypassing integration.
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