The Customer Loyalty Glossary From A to Z: Words You Must Know

Unlearning and learning again has become the mantra for businesses to embrace the post-COVID-19 pandemic life. Clearly, if there is one thing that became a hit with brands and is steadily growing this year, it is customer loyalty. A staggering 75% prefer a brand with a loyalty program today! While many novel brand marketing strategies are underway, fostering customer loyalty has now become the top strategy.

Last month, we, at Capillary shortlisted some of the most befitting words that customers, marketers and clients associate with a loyalty program. If you haven’t followed us on our social media page yet, check out this campaign here. Today, we bring it all for you in a captivating infographic. Join us in our journey to unveil the very basics of driving a successful loyalty program, where we bring you the functional facets of the loyalty program, starting from A to Z. Let’s look at it, up and close, what each alphabet denotes in the dictionary of customer loyalty:

A – Acquisition: Gain more customers for your brand every day and eventually convert them into loyal customers

B – Behavioral: Ability of brands to retain customers by rewarding loyal members’ non-transactional behavior

C – CDP: CDP aka Customer Data Platform crafts unified customer profiles by integrating data from online & offline sources

D – Data: End-to-end customer information generated in the course of a buyer’s purchase journey

E – Engagement: How a brand interacts with its customers at different touch points to keep them hooked

F – Frequency: Capturing the intervals of purchases in the buyer’s journey and rewarding them for repeat business

G – Gamification: Games integrated into a loyalty program to turn active mode for inactive customers & build high engagement

H – Hybrid loyalty: Coming together two or more loyalty programs and picking the best elements to benefit customers

I – Influencer: Building social credibility through experts to create brand awareness and attract new customers

J – Journeys: Enables brands to manage, measure, and improve experiences across customer touchpoints and time

K – Know your customers: Verify the identity of your customer using transactional and non-transactional behavior.

L – LDS: Our proprietary framework Loyalty Delivered Sales (LDS) measures the success of a loyalty program by leveraging scientifically proven data-driven methodology.

M – Multi-country loyalty: Running a centralized/decentralized loyalty program strategy across multiple countries

N – Nudge: Well-timed interventions by the system to elicit a desired response from the customer

O – Omnichannel: Deploying multi-channels to give customers a seamless shopping experience

P – Personalization: Personalizing customer experience by tailoring individual’s needs and preferences

Q – QR code-based loyalty: QR code-based loyalty programs enable wider customer reach & promote sustainability

R – Retention: Retain customers by increasing purchase frequency and improving brand association

S – Segmentation: Segmenting the brand’s customer data to first understand and then reward them better

T – Tiers: Different tiers are assigned to customers based on reaching a specific set of points

U – Unified view of customer: A comprehensive view of customer beyond purchase data across different touchpoints

V – Virtual rewards: Offered instantly for specific action exhibited by a customer & delivered on a digital medium

W – Win-Win: A loyalty program is always a win-win for brands and customers alike in the longer run

X – C[X]: Enhancing customer’s overall experience at different touchpoints to create long-term loyalty

Y – Yield: Cultivate the brand’s relationship with customers using loyalty programs to yield future benefits

Z – Zero-party data: Rich data collected directly and proactively shared by the customer

At Capillary, many global brands like Domino’s, Erajaya, PUMA, ASICS, etc. have nailed it with a successful loyalty strategy. To know how your brand can fetch up to 20% topline revenue and customer satisfaction, book a client demo with our expert and discover it for yourself.

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Writer, traveler, and a cold coffee addict, precisely in that order, Aditi Jindal is a storyteller. Whether it is slicing brands and their content marketing strategies or dabbling different genres of book writing; her keen interest in finding the unique idea for brands to deliver compelling stories keeps her on her toes.