Ñlient Loyalty
Competition in the markets has made buyer loyalty one of the most significant factors in ensuring the sustained existence and development of business. These days, it is not enough to offer a great product or service; the clients want more.
Loyalty programs must aim at ensuring mutually advantageous long-term relations between the supplier and the consumer. To achieve this, the company needs "delicate" influence mechanisms. Loyalty based only on discount programs will eventually lead to disappointing results. Companies can and should use other methods of client retention, including: taking into account the specifics of each customer, foreseeing their needs, and offering things which are likely to interest particular customers and thus add value to the company in the client's eyes.
The Loginom platform is a perfect tool for client data analysis and maintenance of loyalty programs:
- Client segmentation. Client clustering (grouping clients by similar behavioral patterns) is fundamental for offering more individualized products and services. On the one hand, segmentation allows the behavioristic characteristics of different groups of customers to be taken into account, and on the other hand, it gives an opportunity to make special offers or conditions for them economically feasible. Loginom has powerful built-in clustering tools which allow complex dependencies and the mutual influence of hundreds of factors to be taken into account.
- Preferences analysis. In order to retain customers, it is important to understand why they prefer one product or another, what factors affect their preferences and what is most important from their point of view. For this purpose, Loginom has a number of rule-discovery algorithms. Their use allows dependencies to be found automatically, explains the behavior of clients and evaluates the importance of different factors.
- Demand stimulation. The market basket analysis mechanisms help to find out what goods are bought together by a certain group of clients. This allows implementation of cross-sales programs, development of discount systems which are attractive to clients and beneficial to sellers, and achievement of better merchandise placement.
- Direct marketing. Developing personal relations with clients is expensive, but it is one of the most important tools for improving loyalty. To make direct marketing economically feasible requires accurate selection of the target audience. Using the analytical mechanisms built into Loginom, the user can select clients with due regard for the means of communication, history of the relationship, demographic information, geographic position and consumption patterns.
- "What-if" analysis. The use of Loginom gives an opportunity to model situations, evaluate response to advertisements and gauge customers’ reactions to individualized offers. In the long run it makes it possible to develop economically advantageous relations with customers.
In-depth data analysis is crucial for implementing loyalty programs. Without modeling, segmentation and pattern-finding the programs will not have any useful effect because in that case, everything is reduced to merely offering a discount. The use of the analytical techniques implemented in Loginom allows understanding of what clients need, and offers them the necessary product at the right time and at the "right" price.