The Future of Loyalty program in India
The loyalty market is growing fast and has become one of the essential segments for businesses. The Loyalty Programs in India are estimated to develop at a CAGR of 13.1 percent during the forecast period of 2022-2026. The country's Loyalty Programs Market will grow from US$ 2141.9 million in 2021 to US$ 3963.6 million by 2026.
The growing importance of loyalty programs in India
Customers also know that they have numerous alternatives to select from and do not enjoy being taken for granted by businesses. In addition, it's becoming increasingly difficult for brands to keep up with customer expectations due to changing technology and digitalization trends, making it easier than ever for consumers to compare products within the same category.
This can result in lower levels of satisfaction among customers who have been loyal but feel like there's been an increase in competition from other players within their industry space (e-commerce).
Change in consumer behavior
The future of loyalty programs in India is looking great. Here are a few reasons why:
- Consumers are more demanding and aware of their choices. They have become savvier about brands and value their money, time, and health.
- Consumers are more aware of how they spend each day. Consumers want to ensure that they're getting value for their hard-earned money by making informed decisions about where/when/how much/what quality products or services will best serve them based on their needs.
Customer engagement
Customer engagement is a great way to build a relationship with your customers. It's about getting them to interact with your brand, talk about it and share their experiences with others. It's also essential that you don't just focus on one activity—you must engage in multiple ways simultaneously!
Increase in value of loyalty programs
The primary key to increasing the value of your loyalty program is to think about what you can do to improve the average value. You want to look at everything from customer satisfaction and retention rates to customer lifetime value (CLV).
To get there, you need to make sure that your loyalty program has several different types of points:
- Points based on transactions—this is where someone buys something from you; they get 10 points per purchase or 20 points if they buy more than one item at once.
- Points based on product usage—if customers use their points regularly within a specific time frame (say six months), you'll give them an extra 25% off their next purchase!
Build strong relationships with customers
Loyalty programs are an excellent method for businesses to build strong customer relationships. They can help companies grow their customer base and increase revenue.
Loyalty programs have several benefits:
- They help businesses retain loyal customers by making them feel unique and valued. This is especially important for high-value customers who spend more money than average. It's also essential for companies that want to keep up with industry trends or stay ahead of competitors by offering exclusive deals/discounts for loyal customers.
- Loyalty programs can help you build engagement with existing users by communicating how much you appreciate them through relevant messages like birthday greetings or anniversary gifts. This will make them share information online, leading to future business opportunities down the road!
Conclusion
While loyalty programs are still new in India, companies have already started offering them. There is much expectation as to what the future holds for loyalty programs in India. India will likely come a long way if we keep innovating and striving to improve customer experience.
