mSparsh
Loyalty Management System
A loyalty program is a strategic tool
that
helps
to
foster
long
–
term
relationships
with
customers
by
providing
rewards
and
personalized
experiences,
ultimately
increasing
customer
satisfaction
and
lifetime
value
.
Customer Retention
The cost of acquiring new customers is significantly higher than retaining existing ones . Loyalty programs incentivize customers to stay with the the business by rewarding them for continued engagement .
Increasing Competition
The businesses are attracting customers with innovative products . A strong loyalty program can differentiate to keep customers who remain engaged .
Changing Customer Expectations
Modern customers expect personalized experiences and value - added services . A loyalty program that offers tailored rewards can meet these expectations, creating a stronger emotional connection to the brand .
THE VALUE OF A WELL - DESIGNED LOYALTY PROGRAM
A
well
–
structured
loyalty
program
is
about
rewards
and
building
lasting
relationships,
ensuring
that
we
remain
a
valuable
part
of
the
customer’s
journey
01
Boosting Engagement
02
Building Trust and Loyalty
03
Drive cross selling & up - selling opportunities
04
Enhancing Customer Lifetime Value
STRUCTURING A LOYALTY PROGRAM FOR MAXIMUM ENGAGEMENT
The
design
of
a
loyalty
program
is
critical
to
its
success
.
A
well
–
thought
–
out
program
offers
customers
meaningful
and
attainable
rewards
while
aligning
with
the
business
objectives
structure,
defining
reward
options,
establishing
tier
levels,
and
setting
rules
for
point
expiration
and
redemption
.
The
key
components
of
a
businesses’
loyalty
program
work
together
to
drive
customer
behavior
by
offering
rewards,
personalization,
and
escalating
benefits,
ultimately
creating
long
–
term
loyalty
.
Points/Reward Accumulation System
- Earning Points/ Rewards
- Bonus Points/ Rewards
- Flexibility
Points/Reward Accumulation Rules Types
- Direct Rules
- Time - based Rules
- Referral Rules
Rewards Accumulation Triggers
- Purchase Transactions
- Return Transaction
- Internal Event
- Custom Event
- Achievement
- Time - Based - Trigger
WALLETS
Digital
wallets
serve
as
repositories
for
storing
and
managing
units
linked
to
a
loyalty
program
.
They
offer
a
convenient
way
to
track
and
redeem
earned
rewards,
giving
you
flexibility
and
control
over
your
digital
assets
.
Unit Expiration Method
Unit Pending Method
Global Units Limitation
Member Units Limitation
FEW SAMPLE RULES AS AN EXAMPLE
- Earn 1 for every INR 100 spent
- Earn 2X points when shopping on birthdays
- Refer a friend and get an extra 100 points
- Install a mobile application and get 100 bonus points.
- Celebrate Rainy Season - Buy five times between June and August.
- Spend a total of 100 on products with SKU 'ABC132' in September.
- Buy an iPhone on Amazon and earn an extra 500 points
- Refer five friends in a month and get an extra INR 1000 coupon
- Buy an iPhone on Flipkart and earn an extra 500 points
- Place 10 Orders above 5000
- Four referees made the transactions for two consecutive days
TIERED MEMBERSHIP LEVELS
Tiers
are
a
classification
system
for
members
based
on
specific
criteria
such
as
total
transaction
value,
the
number
of
active
units
in
a
designated
wallet,
membership
duration,
or
a
combination
of
these
factors
.
Tier Structure
Exclusive Perks
Clear Upgrade /Downgrade Path
PERSONALIZED OFFERS & EXPERIENCES
- Tailore Rewards
- Contextual Promotions
EXPIRATION & ROLLOVER
POLICIES
- Point Expiration
- Rollover Options
- Communication of Expiry
ACHIEVEMENTS
The
Achievements
allows
members
to
participate
in
campaign
–
based
challenges,
which,
once
completed,
give
users
additional
benefits
in
the
form
of
extra
units,
coupons,
and
other
rewards
.
- Challenge and Contest
- Milestones and Badges
REWARDS AND REDEMPTION MECHANISM
- Real - Time Redemption
- Integration with Reward Partner
TECHNOLOGY AND INFRASTRUCTURE: THE BACKBONE OF A SUCCESSFUL SYSTEM
A
loyalty
program
needs
a
robust
and
scalable
technology
infrastructure
to
succeed
.
This
involves
integrating
various
systems
like
hotel
management
systems,
CRM,
mobile
apps,
ERP
systems,
and
core
banking
platforms
and
leveraging
real
–
time
data
analytics
to
provide
a
seamless
customer
experience
.
Secure
and
flexible
technology
ensures
smooth
program
operations,
enables
data
–
driven
decision
making,
and
supports
the
program’s
growth
.