Pandemic or No Pandemic, Customer Loyalty is Paramount. Loyalty Management to Reach $9.2 Billion
Customer Relationship Management or CRM is one of the most important aspects for almost all businesses and this is what is going to drive the global loyalty management market worldwide.
Customers in this digital era hold the power to choose from the multitude of options available to them. It is therefore important for businesses to identify and pursue means for retaining customers.
However, retaining customers is not an easy task. There can be several challenges which organizations would be required to overcome.
There are however, certain common practices that businesses follow for customer retention. Creating a system of rewards, based on past purchases is one such practice.
Incentives provided are likely to keep customers motivated for future purchases. Designing a system of rewards comprises many operational parameters including revenue options, transaction type and program design among others.
Loyalty management programs enhance customer retention, customer penetration and cross selling and are therefore important for businesses intending elevate to higher levels.
Under their loyalty management programs, businesses offer different options such as discounts, product offers, gift vouchers and reward points among others.
However, businesses generally face challenges in effectively managing all their loyalty programs, especially if they are multi-location business.
Such enterprises would be required to offer similar services to customers across different locations.
Loyalty management software enables enterprises to better manage all their loyalty programs, with least human intervention.
The solutions enable organizations to successfully build their loyalty programs, both for business customers and individuals.
Loyalty management programs have the main goal of creating a strong loyalty relationship between businesses and their customers.
Employee retention through loyalty goes a long way in reducing time and efforts associated with the hiring process.
Loyal employees stay with an organization, assume different roles responsibly and are amenable to management’s decisions or requests.
These employees support co-workers and company’s vision and mission, helping organizations in achieving enhanced productivity and gains.
Creating and cultivating employee loyalty reduce investment in the hiring process. Employee loyalty holds a direct correlation with management and results in loyal team members.
These benefits are prompting more organizations to invest in loyalty management programs for improving employee loyalty.
The global outbreak of COVID-19 pandemic is not just a concern for the public health services but is also becoming a major concern for businesses across the globe.
With lockdowns and travel restrictions in place, consumers are adopting a cautious approach spending on discretionary purchases.
Further, retail stores and e-commerce platforms have also been forced to cease operations.
Under such testing circumstances, brands are looking to retain customers by realigning their loyalty programs to the present crisis scenario and ensure its communication to customers.
The concerns over COVID-19 crisis are also raising concerns among businesses about its impact on their customer relationships.
Despite the desire of businesses to continue providing value to customers, the prevailing scenario is especially testing the loyalty of customers.
Though the crisis is affecting bottom lines of businesses, strategies such as flexible refunds and changing loyalty program policies are likely to be adopted by companies to ensure loyalty of their customers.
Market demand for loyalty management will pick up momentum from 2021 onwards as several companies across various industry verticals would continue to adopt the loyalty management programs for the purpose of client retention and for establishing long-term customer relationship.
The idea of loyalty management involves designing of special rewards to consumers for their past purchase and providing them with incentives to make more purchases in the future.
By offering strong value to customers, these reward programs improve cross selling, customer penetration and retention.
Competitors identified in this market include, among others:
- Aimia Inc.
- Bond Brand Loyalty Inc.
- Comarch SA
- Epsilon Data Management LLC (Epsilon)
- Fidelity Information Services (FIS)
- IBM Corporation
- ICF International, Inc.
- Kobie Marketing
- Maritz Holdings Inc.
- MicroStrategy, Inc.
- Oracle Corporation
- SAP SE
- TIBCO Software, Inc.
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