2020 has been a year of tears by dealing with the fall-out of the pandemic- Covid-19. People are restricted to close contact and going out, travel and commerce were almost frozen. Obviously, the economy faces many challenges and the traditional retail company struggles to survive when the stores are closed for preventing the pandemic. People are hopeful that life will remain stable with the launch of the Covid 19 vaccines. Preparing for it, the retailer needs to be ready for building the Retail Loyalty Programs which catch the shopping craze when customers come back. Let’s discover a practical guide to Retail Loyalty Programs in 2021.
Firstly, the retailer needs to know that how many types of Loyalty Programs can be applied to retail:
- Converting the spent amount to reward points for the customers: It is a conventional program that can be found in any retailer. The customers can use this reward point amount for exchanging goods or services of the retailer.
- Building the customer tier system: giving the better reward/endowment when the customers move up to higher tiers. That can stimulate the consumers to spend more money in order to upgrade their tiers and get more special offers.
- Combining with the third party loyalty program: allowing the customers to use the reward point for exchanging the goods or service of another retailer. This program helps the retailer can support each other to maintain customer loyalty.
- Providing the fee loyalty program: using e-commerce sites (like Amazon, Tiki, Lazada…) for providing free delivery times per month whenever a customer bought a customer package, that makes the customer feel they need to take the free offers which are brought by the package. Then they will keep buying more and more products on these e-commerce platforms.
- Bonuses for referring new customers: Connecting deeply with the consumers and their friends. It saves the cost of attracting new customers by the marketing tool, bringing this benefit to the current customers and increasing satisfaction.
To effectively implement the Retail Loyalty Programs, the enterprise has to build the Loyalty Programs and make the Loyalty Software, which was created on the Website and Mobile Platform. This blog introduces in more detail how to develop a Loyalty Mobile Application. Below is a list of 2 different common situations you may experience:
1. You don’t have any Loyalty Mobile Application
- Finding a suitable loyalty program to apply to is very essential. In addition, it must be based on your oriented development from your company resource.
- Choosing a reliable builder plays a vital role in building the Loyalty Mobile Application. Due to this platform has a complicated logic, and many business procedures must be maintained. Running a Loyalty Mobile App necessitates a high level of concentration and technical knowledge. The best approach is to seek advice from a software development company expert and carefully examine the product created by each builder in the preselected list.
Loyalty Mobile Application
- Developing the Loyalty Application Architecture. Typically, the builder would recommend it. On the other hand, it can be the fundamental solution in determining the loyalty programs you can use and which you cannot. In the survey stage, you may be asked to choose the flexible or inflexible method to develop your system. The flexible method means they will create the configuration form in your system and you can modify it anytime for changing the business process which is applied in your Loyalty Program. The inflexible method means they write the fixed condition in the code for categorizing your workflow. The rigid method is cheaper and takes less time than the flexible method. So using what method is based on your demand and the resources of your company.
2. You already have a Loyalty Mobile Application
- You need to analyze the existing data for identifying the next Loyalty Program you want to develop. Based on your current program running, you can use the data and Loyalty Application Architecture, then you must create a new feature. This leads to shorten the implementation cycle and work in tandem with the current software to improve its performance.
- Enhancing your Loyalty Application Architecture as much as possible. It is likely that the Loyalty Application Architecture you built in the past won't work for the current approach. As a result, attempting to add more functionality to an existing framework could cause conflict or have a negative effect on device performance. Reviewing the whole structure and attempting to improve it will assist you in avoiding a business interruption.
Loyalty Application Architecture
- Developing the new function for implementing the new Loyalty Programs. In this stage, you must define the detailed program you want to develop. The owner of this new program has to visualize and forecast what function needs to be used by the delivery team and what business cases may happen. Careful preparation is useful to ensure your business is a smooth operation.
- Assessing the result and improving the Loyalty Mobile Application. In actual implementation, there are still certain new cases that cannot be anticipated and require your manual intervention to resolve. However, after overcoming them, you could gain more experience and know what are the mistakes and unfit logic so that you investigate and suggest the improvement solution for ensuring the identified cases won’t be repeated. This will catapult the growth of your business and retail loyalty programs into the future.
We hope this post can help you gain more insight into Retail Loyalty Programs. If you need any help in building a great loyalty mobile application, talk to our experts at Kyanon Digital.