The loyalty program is one of the courier and delivery advertising ideas aimed at retaining returning, valuable delivery service customers. When designing the discounts, it is important to formulate the goal you want to achieve with the delivery service and to create a suitable system. The same system will not be appropriate if the goal is to attract new customers, as if we are trying to deepen the loyalty of existing and most valuable customers.
We want to increase our income, perhaps we will use the system to convey the values of the courier brand. In order to make the right choice, we need to know the priorities of our consumers, since all of the above web store goals are ultimately aimed at keeping loyal customers.
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Customer Loyalty Program in Delivery Services
According to nShift article, the main reason why loyalty programs are so popular is the customer who returns. Motivating a returning customer is much easier than acquiring a new one. A loyalty program in delivery services is a tool to attract regular customers to your courier brand.
The Benefits of Customer Loyalty Programs
Current and complete customer data and consumer trends
The moment a client registers in the loyalty program, the courier company begins to collect data about him in its database. This data is then used for cross-channel, offline, and e-commerce purposes, creating profiles of the best customers and tailoring its own offers to specific consumer groups.
Because the information obtained gives the delivery service insight into customer behavior, purchasing habits, and preferences, it can use it to more effectively manage operation, optimize pricing, and plan promotions. It also allows marketers to accurately measure the results of their activities and get detailed information about preferred communication channels.
Reducing the number of unprofitable clients of delivery services
One of the benefits that is rarely discussed in such lists of the pros and cons of loyalty programs is the ability to optimize your customer list. A loyalty program allows delivery companies to segment customers and identify those who are profitable and those who are not very profitable. This helps weed out customers who only buy delivery services with maximum discounts. Often, the costs of maintaining relationships and providing service to such clients are higher than the benefits they bring.
With a loyalty program in delivery services, a company can reward only its best customers and thereby minimize payments to less profitable ones. This is the most phenomenal way to retain the clients from whom we get the most value.
Strong connection with the delivery service’s clients
A loyalty program in delivery service provides a direct link to customers, making it much easier to build strong relationships with them. In addition to communicating new services, promoting sales, etc., a useful item on this list of pros and cons of loyalty programs in delivery services is that they make it easier to deal with reviews when needed.
Since you have the purchase date information, you can ask for feedback at the right time. Reviews will have more weight and meaning when they are linked to the courier customer’s actual purchase of the service mentioned. Compared to a typical store sign or website ad, a personalized review request emailed immediately after purchase is much more likely to yield results.
Increasing courier brand loyalty
This is probably the key goal of the loyalty program in delivery services. In this way, the company can motivate customers to turn to it again, increasing the level of loyalty and audience engagement.
Increase in delivery service’s sales volume
Loyal customers are much more likely to contact the delivery service again, order services again and again, thereby increasing sales volumes. At the same time, the delivery service does not spend additional funds on attracting new customers.
Increasing the visibility of the delivery service
Satisfied customers become so-called “brand advocates”, recommending it to their friends, colleagues, or relatives. All this makes the company more famous and known without the direct participation of the company itself.
Increasing competitiveness
Favorable offers for customers are an opportunity not only to increase sales, but also to increase your own competitiveness by offering more benefits to regular customers.
Savings on lead generation
Attracting an existing audience is usually much cheaper than attracting new customers. The courier company saves money, but at the same time, continues to increase sales.
This is far from the entire list of reasons why the customer loyalty system is an awesome factor in the successful commercial activity of a modern courier business. In fact, there are many more of them.
Using Bonus Systems as a Loyalty Program in Delivery Services
Such programs work in a similar way as a discount, but customers do not receive a percentage discount for such services, but a certain amount of points.
The advantages of such a system include simplicity, convenience, and additional motivation. Disadvantages include lack of profit and more complicated setup than when using a discount. Plus, again, this is a very common format of loyalty programs in delivery services, which is difficult to attract the modern delivery service’s customers.
Using Storytelling as a Loyalty Program in Delivery Services
Charitable and other activities in combination with interesting and creative storytelling, allow you to attract the audience even more and keep their attention. Real stories win over customers, increase trust in the courier brand, and form a “company with a human face.”
However, to tell an interesting story, there must be one. Don’t use storytelling if you don’t have anything to share yet. Moreover, it is not necessary to simply invent such stories – this will only cause irritation and mistrust.
Steps to Develop a Loyalty Program for Delivery Services
No matter what types of loyalty programs you plan to use for your delivery service, their launch requires comprehensive preparation. Otherwise, your efforts will be ineffective, and you will waste time and money.
Research of competitors in delivery industry
First of all, it is necessary to study what your competitors offer their customers and what loyalty programs work for their delivery services. As a rule, all conditions are contained directly on the delivery service’s websites.
Study how a competitor’s loyalty program works, how awesome it is, whether a similar format suits you. Blind copying will not work in loyalty programs of delivery services. You have to offer something different, more profitable for the delivery service’s customers, otherwise you will not be able to attract customers for your courier company.
Audience segmentation for incentivizing different customers
Audience segmentation will help you better understand how you can incentivize different customers and create more profitable programs to attract them. It is not always possible to develop a loyalty program for delivery services that will cover all segments. But if you manage to interest most courier customers, it can be considered successful.
Conclusion
So, we understood the benefits of customer loyalty programs in delivery services. A loyalty program turns customers into brand loyalists. But if you perceive it only as a source of advantages, you can lose vigilance and become ineffective. Loyalty programs have their downsides, and when a company knows about them, it can get more satisfied and loyal customers.
