Loyalty program software for small businesses is a tool that enables entrepreneurs and marketers to create, launch, monitor, and assess the performance of loyalty programs.
Unlike in-house loyalty programs, loyalty program software can enable all types and sizes of businesses to run flexible and customized loyalty programs more effortlessly and efficiently.
Benefits of loyalty rewards programs
Loyalty rewards programs have the following benefits:
1. Enhances customer loyalty and retention
A study conducted by Yotpo found that four out of every five customers say that belonging to a loyalty program influences their decision to buy again from a brand.
2. Better communication and engagement
Well-designed loyalty programs can help businesses tailor their marketing and communication strategies. Effective loyalty programs provide unique insights into your customer base and allow you to personalize your communication accordingly.
As per a study by Pymnts, almost 70 percent of customers in loyalty programs feel brands understand their needs and preferences better.
3. Higher basket size and basket size
As per Pymnts three-fourths of customers in loyalty programs will buy more products from the companies they partner with. As per a study conducted by McKinsey, after signing up for a paid loyalty program, six out of every ten customers spend more money on a brand.
4. Enhanced customer lifetime value (LTV)
Loyalty program software can help enhance customer lifetime value (LTV). A study conducted by London-based market research and data analytics firm YouGov found that emotionally-connected customers have a 306 percent higher LTV compared to satisfied customers.
5. Boost small businesses’ revenue
A study conducted by Accenture found that members of loyalty programs generate 12 to 18 percent more incremental revenue growth every year than non-members.
Features of loyalty program software for small business
Here are five features of loyalty reward programs:
1. CRM and omnichannel integration
The hallmark of sophisticated and reliable loyalty program software is how well it integrates into CRM and omnichannel distribution. By syncing your loyalty program management software with CRM software, you enable the storage of relevant data to the offered incentives.
Sophisticated loyalty software for small businesses has a gamification feature. It helps in gamifying various elements of loyalty programs, such as loyalty points, rewards, achievements, and levels, and engages customers through interactive experiences. Gamified loyalty programs provide insights into customers’ behaviors and preferences. It can also enhance customer engagement and customer experience.
3. Advanced Analytics
Loyalty software comes with advanced analytics, which enables businesses to gain a deeper understanding and insights into customers’ behaviors and preferences. By doing so, businesses can identify high-value customers and leverage data to find key insights.
4. Feedback notifications
Let’s be honest, you want your loyalty program software to send dynamic notifications. In fact, one of the most important features of sophisticated loyalty program software is the ability to send customer feedback notifications and reminders.
5. Easy configuration
Loyalty program software should be easily configured. Doing so will enable businesses in setting up loyalty programs. Easy configurability can also ensure that the loyalty software can be customized for small businesses.
ConclusionAt LoyaltyXpert, we have a proven track record of creating customer loyalty programs, channel loyalty programs, and influencer loyalty programs for businesses across industries. If you are looking for digital loyalty programs, contact us today for a free demo.