Looking for Redemption – Salesforce Loyalty Management
As markets mature, they all go through a series of steps. The first movers or disruptors have something new, something unique that differentiates them from an existing market. If they move quickly enough they can achieve a dominant share of that market that may take months or years for their competitors to chip away at. Once that new path has been defined, there will be no shortage of copycats who think that the market can tolerate a slightly different flavour of food delivery service, online retailer or any other service provider.
Moving on up
Step 2 in this maturity curve is when that first mover starts to be caught; the early copycats take advantage of the pioneer’s new business model and tweak it slightly; they still want a slice of the new pie, but want to show how they are better than the first mover. Some will survive, but many will not, and will either be absorbed by a competitor or simply go out of business.
Standing out from the crowd
For those that make it through into the third phase, where products and services are increasingly commoditised, they need to at least maintain their market share and their loyal customers and ensure they aren’t tempted away by the upstarts. In many cases, this is when companies look to develop a loyalty management programme to maximise retention and minimise churn. These programmes have spawned many different variants over time, but essentially it boils down to one equation; in return for continuing to give you my business, what’s in it for me?
Show me the Rewards
Take a manufacturing company for example; they sell automotive spare parts via a distribution network to dealers and repair shops, but they are being increasingly undercut by lower-priced, lower-quality equivalents. They can incentivize their distributors to promote their products with a loyalty programme that provides benefits that differentiate them; they cannot compete on price, but the points or credits that distributors earn from sales can be traded for something like enhanced payment terms or additional expert product training. For the distributor, they could go with selling the cheaper, lower quality version or use the benefits of the loyalty program to provide a higher quality service to their own customers.
Fly me to the moon
In a different sector such as Travel, loyalty management is not a new concept and every airline has probably had several iterations over the past few decades. Given the recent turmoil and future uncertainties of this sector, many businesses will not survive and those that do will be forced to look at their business models and re-evaluate how they re-engage with a customer base with vastly changed priorities and sensitivities. We’ve already seen how refund policies have had to adapt and change to the reality of a global pandemic and loyalty programs will be equally forced to transform. In combination with corporate social responsibility initiatives such as carbon offsetting, the travel industry needs to realign with what its customers now value as rewards – perhaps they want to travel less and spend already earned points closer to home or use their points with health service providers for COVID-19 testing.
Earn my trust, reward my loyalty
Whatever the industry, all businesses want to be able to have that complete view of their loyalty program – its members, benefits, rewards, status – in a single place rather than spread over multiple platforms and dependent on humans updating spreadsheets. They want to align their marketing and customer acquisition efforts with frictionless on-boarding experiences so they can see which approaches work and which don’t. They want to provide those members with self-service capability for the majority of their interactions, but with a smooth transition to a serviced experience where necessary. And they want to see the commercial benefits they get from increased customer retention and repeat business that ensures they stay ahead of that undifferentiated commodity competition.
What’s this got to do with Salesforce then?
Glad you asked – everything! Salesforce Loyalty Management is at the heart of that relationship you have with your customers, whether they are business or consumers.
- Identify and target potential new customers, and therefore members, with Marketing Cloud
- Provide self-service visibility and management via Experience Cloud
- Support queries and issue resolution with Service Cloud
- Use Loyalty Management to set-up and manage loyalty programs and their component parts:
- Benefits (e.g. Free shipping, Extended returns period, New product previews, Birthday surprise)
- Promotions (e.g. Black Friday Double Points, Seasonal Voucher codes, Enhanced trade-in allowances, Spend x, get y)
- Complementary partners to earn points
- Popular business partners to spend points
- Analyse results with built-in Tableau CRM analytics
OK, so where does PolSource fit in then?
PolSource is one of the launch partners for Salesforce Loyalty Management and can work with you, whatever your industry, to assess how it could support your business initiatives. We can provide the right combination of advisory, consulting and implementation services around Loyalty Management for you as a customer to then more productively engage, retain, service and support your own customers to grow your business and ensure you stay ahead of the pack on that road to redemption.