Why is loyalty a business asset
Fortune Business Insights reports that the loyalty management market is forecast to grow to $18.2 billion by 2028, more than 4 times its current value. The business value of loyalty isn’t only in its competitive advantage, as it’s become a race at enterprise level to build the best loyalty programs, but it is in its long term collaboration, and following this, also financial value.
Loyalty indicates that someone chooses a business entity based on a preference, while they have a certain resistance regarding the competition. Nevertheless, it should be pointed out that loyalty goes beyond spending money.
Loyal customers will not only be coming back to do business with you again and again, but they will also encourage others to do the same. This gives rise to quality referrals and word-of-mouth marketing. Loyal customers become a valuable source of honest feedback, allowing the company to constantly improve its services.
At the same time, loyal employees will vouch for you and serve as true ambassadors for your business. That is because loyal employees will usually find their work meaningful, contribute to the bigger picture behind the company’s goals and will stay loyal to their colleagues and company. A loyalty program is not a quick fix for existing culture or planning issues, it is the last piece in a series of processes and operations that make the company work, which operationalizes gratitude and recognition from the management’s part into something tangible.
A solution like Touch Network can make a difference in how a company sets up a loyalty program and the appropriate incentives, whether it’s internally for its employees, or externally for its customers.
Retention vs. loyalty. What’s the difference?
It is important to make a clear distinction between retention and loyalty. A customer who continues collaborating with you or buying your product may be retained, but they may not be necessarily loyal. Sometimes, retention is a matter of not having other options available in the market, especially when you need a specific set of services in a specific price range. Similarly, an employee may be staying with your company just because they haven’t found something better, but that doesn’t mean they will recommend their friends to join the team. When you draw the line, loyalty is signaled through word of mouth.
Loyalty-based relationships are what you want for your business
The backbone of your success as a business boils down to your employees working hard to make the customers happy, which means just retaining your customers and employees is by no means a prosperous strategy. You want to aspire towards creating a team that monitors the customers' pain points and goals, and responds appropriately at each point of contact. This, in turn, creates an ongoing emotional relationship with them based on positive experiences and trust.
It goes without saying that customers and employees are the lifeline of any business, while loyalty programs are an indispensable tool for retaining them and attracting new target groups. Whether you choose to dabble with loyalty programs on your own, or you partner up with the pros in the field, it is certainly one of any company’s top priorities. So make sure you start by determining which loyalty tactics you're going to tap into or simply reach out to players like Touch Network, where you can benefit from a solid, flexible loyalty platform and where our joint forces enable a more effective and broad way of serving customers.