From A to Z: Loyalty Words You Must Know!

Loyalty programs have become more and more widespread, and with good reason. A staggering 75% of consumers prefer a brand with a loyalty program today! Customer loyalty has become the cornerstone of any brand’s strategy, and is an essential focus point for sustainable growth.

In this digital age, where customers are constantly interacting with brands online, customer loyalty has evolved to become more personalized and more experience-based. Customers expect loyalty programs to be deeply aligned with the brand’s values. Loyalty programs drive 83% of customers to make repeat purchases, as such customer loyalty strategies are crucial for success.

We, at Capillary, have curated some of the most relevant and impactful loyalty terms that customers, marketers, and brands associate with loyalty programs. Today, we bring it all for you in a captivating infographic. Let’s dive into our A-to-Z guide on customer loyalty, where each letter unveils a critical aspect of building successful, enduring loyalty programs.

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, Shell, IndiGo, PUMA, 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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With a knack for creating engaging content and crafting effective social media campaigns, Anjali wants to make it her mission to leverage the power of content as a strategic marketing tool for businesses. While she is not working, she is either binging movies or writing about them on her blog.