What’s customary in loyalty?
In the current customer-loyalty landscape, it’s more imperative than ever for businesses to have a loyalty program that incorporates certain standard but key strategies; think customer segmentation, personalization, meaningful customer journeys, distinguishable rewards and relevant communication. But opportunities to go truly above and beyond to fortify loyalty programs lie in a fundamental and often untapped component – customer service.
Customer Service has a lot up its sleeve
It’s no secret that a brand’s customer service significantly impacts brand loyalty – studies have shown that 32% customers leave brands because of a bad customer-service experience (PwC, 2023) and a whopping 56% stated that their loyalty is influenced by Customer Service (KPMG, 2019) . It’s only good strategy, then, to make Customer Service the sidekick that champions your loyalty program too.
The trick is to leverage customer service beyond its regular role of complaint resolution and information delivery. Customer Service (henceforth, CS) takes on a valuable avatar when reframed as a conversion opportunity and data-collection source, strategically increasing accruals, redemptions, and documenting customer preferences.
Make the first move
A proactive approach combined with a robust knowledge of the customer base is an effective strategy. It’s how the CS team for SBI Rewardz, managed by Loylty Rewardz, converted a non-redeeming customer with a sizeable reward point balance – by reaching out for an enthusiastic phone conversation about his reward points and the rewards in store. Delighting customers by proactively sharing exciting news about their Rewards status creates awareness, increases engagement and fosters a stronger connect with the rewards program.
The real KYC
Customers appreciate their unique preferences being acknowledged, so it’s valuable to think about how this would apply to your loyalty program. For programs with a rewards catalogue, there’s much potential for personalization, especially when customers request items within their points range but not included in the catalogue. The CS team for SBI Rewardz attended to such a request, going beyond the catalogue and sourcing high-value items specifically requested by the customer. The result was a large-ticket spend, a redemption conversion and a satisfied customer plus additions to the rewards catalogue.
Turn the frown upside down
When talking to Customer Service, the conversation usually centers on troubleshooting or dissatisfaction; in the loyalty program context, they’ve not received the points promised, or are unhappy about the rewards they’ve redeemed. A great way to flip the script is to influence customers to look forward to connecting with Customer Service. This perception-shift happens when the call means good news for the customer; and what better news than hearing about your reward points and the various goodies they can get you? A proactive approach works beautifully to create a positive association with the rewards program – especially since 74% of Indian customers are loyal to businesses with which they have a personal connect (KPMG, 2019). It’s also an opportunity to steer the conversation in the desired direction – Redemption Road, Accrual Junction or Sales Station.
Where you see a loyalty program for your business, a customer sees a rewards program. Leverage Customer Service executives to reinforce this perspective – they can engage with customers in ways no algorithm can, and go out of the way to deliver value. If you value a well-rounded loyalty program, a sure bet is one with Customer Service mobilized for action.