Customer experience refers to the overall impression and interaction a customer has with a brand throughout their journey. It plays a critical role in loyalty programs, as there is a strong correlation between loyalty and customer experience.
A personalized approach is key; it goes beyond simply addressing customers by name. It means sending valuable information tailored to their preferences and needs. Ordinary interactions become extraordinary results. Overall, investing in the customer experience pays off by driving repeat business and creating brand advocates who are more likely to recommend the brand to others.
Delivering an excellent customer experience in loyalty programs presents several challenges that can hinder effectiveness and customer retention. Here are some to consider:
Respond to Rising Customer Expectations
As customers become increasingly savvy about the technology at their fingertips, their expectations are rising. They now demand seamless, intuitive interactions and quick solutions to any issues that arise.
65% of customers expect companies to adapt to their changing needs and preferences, but 61% of customers say most companies treat them as a number.
Source: https://www.salesforce.com/resources/articles/customer-expectations/
But here’s the twist: today’s customers aren’t just looking for discounts. They crave unique rewards that enhance their customer journey. From exclusive access to products to personalized experiences, consumers want to feel valued and appreciated. This shift in expectations is reshaping how businesses engage with their customers, pushing them to innovate and adapt to meet these new demands.
How does Salesforce tackle the challenge of rising customer expectations? With remarkable flexibility, Salesforce provides a variety of loyalty program solutions designed to engage customers in meaningful ways. These include:
- Free delivery
- Early or exclusive access to products
- Birthday gifts
- Extended return periods
- Special events
- Additional discounts
- Welcome-to-tier benefits
But Salesforce Loyalty Management goes even further. By harnessing advanced data analytics and artificial intelligence, it empowers organizations to predict customer preferences and behaviors. This means customers receive highly personalized offers that truly resonate with them.
Reduce Complexity and Manage Transparency
Many loyalty programs suffer from complexity, making it difficult for customers to understand the benefits or how to redeem rewards. This lack of transparency can lead to frustration and disengagement.
74% of shoppers say it takes no more than three bad experiences to abandon a brand.
Source: Connected Shoppers Report, Fifth Edition, Salesforce 2023
How does Salesforce help with complexity and transparency issues? It helps businesses design a loyalty program by making sure that every step is well-planned and optimized. With a user-friendly interface, businesses can easily configure and manage their programs, from setting up rewards and benefits to onboarding cross-industry partners.
Optimize Costs and Resources
The challenge is to ensure that these costs are translated into meaningful customer experiences that drive loyalty, not just purchase.
Collecting information is not enough. The data must be useful and actionable. Otherwise, you will still not know who is interacting with your brand and how to personalize the experience within the loyalty program.
Personalisation means a lot to customers:
How does Salesforce improve cost and resource optimization? The key to success is Customer 360. This tool creates a single view of each customer and integrates data from multiple sources to provide a comprehensive profile. It gives you the power to understand customer behavior and preferences. This is the starting point for creating personalized experiences that drive loyalty, not just sales.
Address Data Management and Privacy Concerns
Customers are increasingly concerned about how their data is used, and brands must navigate these concerns while still leveraging data to enhance customer experiences. This requires robust data governance and transparent communication about data usage.
51% of customers say most companies don’t use their personal data in ways that benefit them.
Source: What Are Customer Expectations, and How Have They Changed?
Loyalty programs must strike a delicate balance between protecting sensitive customer data and delivering personalized experiences.
Salesforce provides a range of security features to protect data from breaches and comply with privacy regulations. These include customizable permissions that allow organizations to control who can view or edit specific data, ensuring that sensitive information is only available to those who need it.
Foster Collaboration and Eliminate Silos
Effective customer experience requires a cohesive approach across all departments. However, many organizations operate in silos, leading to disjointed customer interactions. Breaking down these silos and fostering cross-functional collaboration delivers a consistent and high-quality customer experience.
79% of customers expect consistent interactions across departments, yet 55% say it generally feels like they’re communicating with separate departments rather than one company.
Source: What Are Customer Expectations, and How Have They Changed?
With Salesforce, departments can share real-time data about customer interactions, preferences, and behaviors, enabling them to create personalized loyalty experiences. Everyone has access to the same information.
You improve communication and help teams align their strategies, making it easier to design and implement effective loyalty programs that foster customer engagement and retention.
Make Smart Decisions with Reports and Metrics
Many organizations struggle to quantify the impact of loyalty programs on customer retention and overall profitability. Selecting appropriate metrics and continuously monitoring them is essential for understanding the effectiveness of loyalty strategies.
90% of program owners reported a positive return on investment: Even better, the average value for the ROI was 4.8x.
Source: Global Customer Loyalty Report 2024
Salesforce helps users make smart decisions using filters, report types, charts, and dashboards. Anyone can customize Salesforce objects and fields to turn data into valuable insights.
Teams can see how loyalty programs affect client interactions. With clear dashboards and statistics, they can understand trends and develop data-driven strategies to improve engagement and retention. Salesforce makes it easy for everyone to access the information they need to succeed.
Exceed Your Customers’ Expectations with Loyalty Programs
Research shows that 58% of shoppers are more likely to buy from a brand or retailer that offers a loyalty program. This statistic underscores the significant impact that loyalty initiatives have on customer purchasing behavior.
In addition, 75% of retailers currently have a loyalty program in place, with an additional 22% planning to implement one within the next 24 months (source: Connected Shoppers Report, Fifth Edition, Salesforce 2023). This trend underscores the importance of loyalty programs in today’s competitive marketplace.
Simply put, a well-designed loyalty program improves customer satisfaction and provides companies with valuable insight into customer preferences. In an environment where customer expectations are high, loyalty programs are a powerful tool for driving engagement and fostering lasting relationships.
Case Study
Virtana: Salesforce Managed Services
Managing day-to-day Salesforce operations
