Omnichannel loyalty programs are all about providing the best shopping experience for customers across all channels. They make customers come back to your business by offering a number of incentives for those who are a part of the program.
A loyalty program is made omnichannel by engaging customers across a wide array of channels. For a loyalty program to be truly omnichannel, it should be available for customers who purchase in-store, in-app, or through a browser.
McKinsey says that 75% of US customers are trying a new shopping behaviour in response to economic pressures, store closings, and changing priorities. It has also resulted in 36% of customers trying a new product.
What does the above statistic imply?
This shift in shopping behavior suggests that loyalty is up for grabs! There has never been a better time in the past few years for retailers, despite the grave Covid-19 situation.
In this article, we are going to look at the benefits of omnichannel loyalty programs:
- Data-driven insights:
One of the biggest advantages of omnichannel loyalty programs is that it gives you a 360-degree view of customer activity. It gives you a sneak peek into their buying frequency, shopping channels, purchasing habits, and so on. It gives you unified customers profiles that have information from your point of sale, CRM, app, or even from your loyalty program.
Loyalty programs incentives customers to share their data by offering them loyalty points for doing so. When they use their card, the customer profile gets updated with information about their recent activity.
If brands don’t use personalization in their marketing, they risk losing 38% of customers, according to Gartner. Businesses need to invest in data-driven marketing, and omnichannel loyalty programs collates data from multiple sources for marketers to leverage.
- Customers have a great experience:
The job of an omnichannel loyalty program is not only to incentivize customers or increase sales, but it is also offers an opportunity to provide a terrific experience for your customers. You can track customer behavior, segregate them based on various demographic factors, and provide personalized content. The loyalty program can be directed to different customers based on the kind of content that will make them buy from you again.
- Improved sales:
Having an omnichannel loyalty program has positives written all over it. Businesses that offer omnichannel strategies have an 80% higher rate of incremental store visits,according to Think With Google.
The purchase frequency is 250% higher for brands that use omnichannel vs single channel, according to a report by Omnisend. The same report says that even the average order value is 13% more per order for omnichannel customers.
- Increases customer loyalty:
One of the main objectives of a loyalty program is to increase customer loyalty, and an omnichannel loyalty program makes you do just that. Omnichannel customers will be premium customers who are ready to spend a lot and are more likely to recommend your business to others. 52.3% of customers who are loyal to a brand will join their loyalty program. Loyal customers are worth the effort, isn’t it?
- Smooth customer journeys:
The fact that customers can make purchases from anywhere is what makes an omnichannel program extremely attractive. With an omnichannel loyalty program in place, you can offer seamless customer experiences. For example, Starbucks’ loyalty program is built in such a way that customers can add credits to their phone and use it efficiently at any Starbucks store by using NFC technology.
Customers will be able to assign coupons to their card and activate them at the counter. Using NFC technology, customers can use phones inside the store to enroll in the loyalty program or participate in any gamified form of loyalty program.
- Greater brand awareness:
By using gamification and experiential rewards, customers will already be feeling close to the brand. But if you can manage to add omnichannel to the mix, you will be able to reach an even wider audience. Create more brand awareness by using an omnichannel marketing strategy. You can have Instagram posts where the participants can win huge sums of money. The same contest could also be happening simultaneously in-house. That’s what an omnichannel program can do!
- Another source of revenue:
Your omnichannel loyalty program can be a source of revenue. While this is the last thing in the minds of a brand when developing a loyalty program, when used in the right manner, this can also be a cashcow.
80% of millennials in a study said that they would be willing to join a paid royalty program if their favorite retailers offered them one. This statistic proves consumers are willing to pay for a loyalty program if it offers them the right benefits.
31% of consumers from the above report said that they haven’t joined a paid loyalty program because the retailers they frequent don’t offer them. If you are a retailer, why would you still want to wait?
The problem with traditional loyalty programs is that customers need to spend a lot to make a few points that are worth redeemable or to go to the next tier. This is where savvy retailers can swoop in and offer customers the right kind of incentives.
Examples of omnichannel loyalty programs:
- Bed Bath and Beyond:
Their Beyond+ loyalty program is a paid annual membership which comes with a host of benefits. The members get 20% off on every order made via any channel. It also offers them free shipping and gives them access to exclusive offers and events.
- North Face:
The outdoor recreation products company is a great example when we talk about omnichannel loyalty programs. Its program is called XPLR Pass. Members earn points for every dollar that they spend online, in-app or at the store. Customers can even earn points for actions such as exploring monuments or national parks.
- Aldo Shoes:
Their omnichannel loyalty program for Singapore is called Aldo A-List. Their fully customized loyalty program is available on web, mobile and in-store. It is a free program and you become a part of the program as soon as you buy something from them.
The program offers extra discounts on your birthday, there are welcome gifts, free store to door shipping, points for every $1 spent, and an exclusive member-only access to events and private sales. There are three tieres in the plan called A-list, A-list Black and A-list Gold.
Running an omnichannel loyalty program successfully requires the right technological solutions in place. The retailers need to be equipped with the proper tools to power their loyalty program. An omnichannel loyalty program relationship extends beyond the point-of-sale and helps the brand meet customer preferences.
It will result in repeat sales and brings your customer base closer to your brand in a way that doesn’t look ‘salesy.’ Your customers will be delighted to see the exciting deals that you put on offer and will be grateful for the seamless experience you offer across all channels.
Get in touch with the good folks at 99minds for a plug-and-play omnichannel loyalty program that is easy to set up and even more easier to run. Make customers keep flocking to your store over and over again.