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Go4customer Blog

Customer Loyalty Programs Optimizing Business Value


In this dynamic business landscape, enterprises across the globe are looking for solutions that can bring agility to their processes. In this light, business process outsourcing services as an ideal solution for the organizations to insure their business against any risks and uncertainties. This not only streamlines their operations, but also serves as a perennial solution to improve their brand visibility in the marketplace.

Companies traditionally outsourced their non-core operations to the third party service providers to realize benefits from process value creation. By availing conventional services like help desk outsourcing, telemarketing, call answering, toll free services, etc., clients only benefitted from cost advantages that minimized their transactional costs.

However, to unfold more opportunities for attaining their long-term objectives of persistent growth with continuous revenues, this focus has now shifted towards a customer-centric approach of business value creation.  This blog throws light on the key benefits of adopting customer loyalty programs by the outbound call centers.

Loyalty Programs: Rewiring the User Experience

The main philosophy behind the success of this program is to win customers by continuously rewarding them. This leads to repetitive sales, which in turn, maximizes a firm's sales and revenue. In this cut-throat competitive scenario, loyalty programs are considered as a most powerful strategy to establish brand loyalty and gain an edge over their counterparts. 

As observed by most of the organizations, the programs give a practical reason to consumers to regularly buy a brand as well as to share more information about its features and benefits with friends and peers by spreading a word of mouth. Many marketing analysts believe that this may surge a company's revenue by fifteen times as compared to other product promotional tools.

Types of Customer Loyalty Programs

Points System: This is the most common method used by BPOs to reward end-users for purchasing its client's products and services. In this methodology, customers earn points, which they can redeem as discounts. The tool is mainly a strategy to add more value to the customers by congregating tangible incentive and compel them to frequently visit and purchase the brand.

Club Memberships: This model is the smartest way used by the enterprises for cementing healthy relations with their consumers. A recent report by the American Institute of Human Psychology suggests that nearly 50%-75% of the membership holders prefer to shop from the places holding memberships. The only difference between a point system and membership program is that the former is short term while the latter offers long term value to its distinguished customers.

Besides, there are other loyalty programs, such as plans with VIP benefits, non monetary or discounted rewards, and partnership with other companies.

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