Several crisis situations have occurred in the recent years. Such events completely upended the market and the lives of the consumers, which ultimately changed how consumers interact with companies. Multiple changes have been made in people’s shopping behaviours; more than 75% of consumers, according to a McKinsey analysis, have altered their purchasing patterns since the pandemic began. On the plus side, organisations who are willing to innovate and put customer retention first will find that these trying times provide plenty of loyalty programme tactics.

Customers recall the brands that stood by them.

Loyalty programmes have always helped brands survive difficult times. For instance, Betty Crocker created the first contemporary loyalty programme by releasing “box tops,” which were reloadable coupons printed on product packages, in the late 1920s, during the Great Depression. Later, during the recession of the 1990s in the west, card-based loyalty programmes gained popularity. Following the 2008 financial crisis, loyalty programmes saw a boom, expanding by 19% between 2007 and 2009 and luring customers back to the companies who were providing the greatest bargains.

You must find a strategy to entice clients to continue doing business with you through trying times and to convey your concern for them. All of the above can be accomplished by using a loyalty programme. In these trying circumstances, it’s even more crucial to concentrate on your current clients because getting new consumers costs five times as much as keeping existing ones. There are various ways to make the most of your loyalty programme and convince members to stick with it. Let’s examine how your loyalty programme might be modified to respond to various crisis situations.

Reevaluating the Methodology for Customer Retention and Loyalty

COVID-19 changed how businesses in virtually every sector conduct business and has an impact on all facets of consumers’ daily lives. The issues facing business owners have changed, and businesses must acknowledge that the old methods of gaining consumer loyalty are no longer effective. According to a Deloitte survey, nearly four out of five respondents can recall an instance in which a brand responded to a pandemic positively, and one in five strongly agreed that it resulted in their enhanced brand loyalty. Additionally, brands need to reevaluate which client categories are most crucial to them, how those customers engage with their business, and which features appeal to them. They can increase brand affinity with the use of these insights.

Optimal techniques for post-pandemic loyalty programme designs

Turn to digital solutions: As the need for online shopping and home delivery grew, using digital platforms was the only method to interact with brands. If you give clients a gift for joining your loyalty programme or whether you use gamification aspects, digital loyalty programmes are a lot more creative method to rewarding customers.
Omnichannel is now a requirement, as more and more businesses convert to digitalized, next-generation loyalty programmes that can give customers a seamless experience across all channels—offline, internet, and mobile. A brand’s entire perspective of the consumer is also provided via an omnichannel loyalty programme.

Focus on mobile first; you must have a strong mobile presence. By concentrating on mobile engagement, your company may also take advantage of new opportunities like push notifications, app-only deals, and digital loyalty cards.
Pay attention to social retail and think about expanding your loyalty program’s virtual experiences or services, such as livestream shopping. Create a loyalty programme that allows users to engage in social shopping and gain rewards.
After being driven into solitude, create communities. Loyalty programmes are a terrific approach to create a supportive community around your brand. Additionally, this strategy boosts the likelihood of finding new brand evangelists and raising client lifetime value.

Loyalty Programs: A Lifesaver in Difficult Times

You should concentrate on keeping savvy clients during unpredictable times. Your objective should be to build stronger relationships with current clients and increase their confidence in you. You can accomplish this by showing them your concern. One of the most effective strategies for boosting business revenue growth, particularly during recessions, has been customer loyalty.

To successfully navigate the difficult and uncertain times ahead, businesses of all sizes must modify their budgets and strategy. To do this, they may need to adjust their loyalty strategy. Because loyalty programmes not only offer a terrific way to keep existing consumers, but also have large customer bases with lots of resources and lots of communication opportunities. We can only hope that these circumstances won’t endure for too much longer, but in the interim, please let us know if we can assist you in implementing or updating your loyalty programme. Simply schedule a demo or submit an RFP.