Key Benefits Of Creating A Customer Loyalty Program For Manufacturers

Creating a loyalty program is key to increasing ROI for your business. Loyalty programs are designed to retain existing customers who are loyal to your brand. Loyal customers make frequent purchases, and the cost of selling to them is relatively low. They also tend to get referral business for you via word-of-mouth marketing.

If you want to improve customer loyalty you need to take certain actions such as understanding your customers’ needs, providing them with good services, handling customer complaints well, etc. It is imperative to provide better services to your potential customers if you want to get repeat business.  When you get repeat business from the same customers, you have gained brand-loyal customers.

A loyalty program can do wonders for manufacturing businesses. Especially since their target audience consists of suppliers, wholesalers, retailers, or distributors, who they are not in constant contact with.

This article is a comprehensive guide to customer loyalty programs for the manufacturing industry.

Proven Approach To Improve Customer Loyalty In Manufacturing

• Personalized Customer Services

According to a study, more than 70% of customers prefer to do business with companies that use personal information to make their shopping experience more relevant. It can help manufacturing businesses create a unique bond with their customers. They feel valued when you address them with personalized services like wishing them on a special occasion, rewarding them for making frequent purchases, etc.  Listening to your suppliers, dealers, and wholesalers to gather their feedback is also crucial to growth. You can also use their shopping habits to personalize their shopping experience and keep them loyal to your business.

• Multi-Channel Customer Service Approach

Having a multi-channel service system is one of the most reliable ways to stay connected with your customers, particularly when they need help. They will have more access to your customer service teams creating more customer interactions and a better customer experience. Using various channels for customer service provides an omnichannel experience for your customers. This experience increases customer satisfaction by making your customer service more user-friendly while contributing to increased brand loyalty.

• Sharing Positive Customer Experience

Collect customer feedback and share their reviews to acquaint other customers with the benefits your business is providing them. Customers tend to trust their peers advocating a brand rather than the brand advertising itself. According to a study, word-of-mouth was the most common source of discovery for new brands, products, and services. Sharing testimonials of your previous clients is a worthwhile idea to showcase trust in your manufacturing business. You can also use surveys to gather their feedback and publicize the results to win the trust of potential clients. 

• Delivering Added Values Along With Perks

Offering valuable experiences helps your manufacturing brand stand out in a competitive market and build customer loyalty. Provide perks, rewards, and recognition to add value and encourage brand loyalty. Offering personalized solutions and exceptional service also ensures customer satisfaction and trust.

• Introducing A Strategic Incentive Program

A customer loyalty program offers distinct incentives to build brand loyalty. For manufacturers, loyalty programs are more effective with a points system where customers earn rewards on purchases, redeemable as cash vouchers or products. Research shows that 55% of customers will spend more for a guaranteed good experience. Creating a customer community, such as a knowledge base or ideas forum, also enhances value and encourages interaction. 

Key Benefits Of Creating A Customer Loyalty Program For Manufacturers

• Generate More Revenue: By implementing a customer loyalty program, manufacturing businesses can incentivize repeat purchases or bulk purchases. This contributes to a direct increase in revenue.  Loyal customers can help drive future revenue as they have a higher customer lifetime value (CLV). 

• Make Customers Feel Valued: Loyalty programs help manufacturing businesses show appreciation by rewarding even small actions. This builds an emotional bond, strengthening customer loyalty and trust.

• Save Costs And Boost Sales: Acquiring new customers costs anywhere from five to 25 times more than it takes to retain existing ones. Loyalty programs help retain customers and also urge them to increase their purchase volume or frequency. This adds to the sales while keeping costs low. 

• Enhance Communication With Customers: A good loyalty program can act as another touchpoint or channel of communication between the manufacturing business and its customers. This acts as a constant reminder to customers about the brand and it stays at the top of their mind. It can also be used to inform and remind customers about promotional offers, discounts, and other rewards which may encourage them to make more purchases. 

• Get More Brand-Loyal Customers: The participants of a customer loyalty program in the manufacturing sector can be converted into brand loyalists by offering them relevant rewards and offers they cannot say no to. They will also feel that are incurring a loss by switching to a competitor if they have points accumulated or any other reward within the loyalty program. This helps intensify their loyalty towards your manufacturing business.

• Increase Customer Interactions: Notifying participants about their reward balances, new contests, or asking for their feedback, creates personalized interactions with the customers. This would not be possible without the customer loyalty program. Tailored interactions remind customers of the brand, fostering emotional loyalty. 

Recipe for a Successful Manufacturing Loyalty Program

1. Define Goals & Objectives – Start by clearly defining the purpose of your loyalty program. Tailor it to your target audience and desired outcomes to structure it effectively.

2. Choose A Mix Of Rewards – Select relevant rewards based on customer actions. Consider using point-based, tier-based, referral-based, influencer-referral, or value-based systems, or a combination of these, to align with your goals and participant motivations.

3. Adopt a Loyalty Management Software –  Implement a loyalty program software platform to streamline the process. This makes it easier for participants to access the program and track their activities while providing a scalable solution for personalized loyalty programs.

4. Review & Refine – Use data from the loyalty software to assess what’s working and what isn’t. Periodically refine the program based on insights to improve its effectiveness. 

Why Use a Loyalty Management Platform?

1. Easy Configuration – Using our loyalty platform, you can create targeted loyalty programs and drive higher engagement and loyalty. 

2. Customizable Rewards – Choose from an extensive rewards catalog to select the best incentives for your loyalty programs.

3. Advanced Analytics – Leverage data to monitor key metrics and generate reports for improved loyalty program outcomes.

4. Gamification – Engage customers on a deeper level with a holistic gamification experience designed to make your loyalty program appealing and addictive.

5. Integrations – For a smooth transition, our platform seamlessly integrates with your tech stack and allows for effortless loyalty program activation. 

Real-Life Case Study

Demonstrating Improved Brand Loyalty for Manufacturing Businesses

Vir Laminates, a prominent laminate manufacturer in India, was experiencing challenges in reaching a diverse user base, understanding customer buying behavior, costly traditional marketing, lack of automated sales data ,and cost-effective marketing for enhanced brand awareness. With the help of LoyaltyXpert, they launched “VIR Loyalty”. It was a fully automated loyalty program with features such as easy onboarding, automated KYC and a digital sales data dashboard. They were able to onboard 5000+ channel partners and improved channel communication with this loyalty program. Data-driven sales forecasting was also possible with the LoyaltyXpert Platform. VIR Loyalty also acted as a cost-effective method of marketing for enhanced brand awareness. 

Are you looking for a customer loyalty program for the manufacturing industry?

LoyaltyXpert is a well-known loyalty program provider in India. The company holds the expertise to deliver customized programs that will drive more revenue for your business. Contact our expert team today and get more details on how we provide the best loyalty program solutions for the manufacturing industry.