What is a customer card?
Customer-centered applications and customer-centered software organizations arrange marketing strategies to encourage customers to buy or stimulate their customers to make more use of the services provided by the service centers. Many of these programs are designed to cover a variety of businesses. And each of these loyalty programs has various features and incentive styles.
In general, in marketing, and especially in retail, a loyalty card, a credit card, a gift card, a scorecard, a dedicated card, or a card of a club, a paper or plastic card is similar to a bank credit card used to identify a customer as A club member is used. The loyalty card is consistent with the loyalty model of the organization. In the UK, these cards are known as a loyalty card and in Canada as a card and in the United States as a discount card or club card. Cards usually have a barcode that is easy to read and scan. Some of them have a chip to call, and others have a barcode to scan.
By presenting these cards, the buyer will receive a discount on his purchase, or will receive concessions for subsequent purchases that the customer can receive more diverse offerings by increasing his privileges. The software that runs on businesses to set up a customer-centric system and customer loyalty is fully compatible with the business. The Callow Customers' Club software is able to coordinate all of its software segments with the business they want, and combining raw data with customer data from the club provides useful and verifiable data. For example, understanding what customers are buying a particular brand. Or what customers are male or female vegetarians. Even with customer data, it's easy to see what customers have to do with a particular diet.
Also, in implementing your customers' club, you can convert customer rates into rials, so that customers use that point for their next purchases.
In implementing a customer club between several B2B businesses, you can offer a variety of rewards to businesses that have purchased a product or service from you.
What is a customer club?
In recent years, competition for attracting and retaining customers has led to the development of relational marketing strategies. Developing companies, a combination of relational marketing tools, are profitable to attract and retain customers. One of these tools is the customer club. Based on the concept of relational marketing, the focus was not on attracting new customers, but on extending relationships with current customers. Recently, the company's attention to relational marketing has been the starting point for companies to set up customer clubs.
Today, many companies spend a lot of money to build relationships with their customers. Customer Relationship Management (CRM), one-to-oneMarketing and growing communications are a number of strategies used by companies to attract and retain customers. The other is the Attracting customers and creating loyalty in them by providing values beyond the intrinsic values of the goods or services they provide, through customer clubs, usually referred to as loyalty programs through close relationships To be
Inventions for customer loyalty clubs are German companies. At the moment, the laws of Germany are severely restrictive and it is almost impossible for a different discount in the club to be applied simply because of the membership of different customer groups at the customer club.
German marketers are forced to create customer clubs primarily for non-financial interests. Today, hundreds of clubs in Germany and in other countries around the world have shown that providing emotional benefits, services, and programs for creating surplus value through discounts is the key to building customer loyalty.
Define a customer club:
The customer club is defined as a communications unit with individuals or organizations that is created and operated by an organization in order to establish direct and regular communication between these members. The goal of the customer club is to enable customers to increase their loyalty by creating an emotional relationship with them.
This issue has been fully accepted in marketing literature that long-term customers are more profitable than temporary customers. Customer clubs are also based on this logic. Whenever the customer is more loyal and more maintainable, he will sell and generate more profit.
Whether clubs are widely advertised are more likely to be accepted. The programs that customer clubs run are designed to give all buyers, without differentiating between them, the same rewards, even for those who have unreliable behaviors.
Customer clubs can be viewed as one of a variety of affiliate marketing activities.
Relational marketing was seen in its early stages as a means of protecting customers, instead of being seen as a tool for constant focus on attracting customers seriously.
The memorable effects of a customer club
Today's companies find themselves in a position where they need to create management systems that keep the customer focused. There are two main reasons for this: on the one hand, the cost of acquiring new customers in highly competitive markets is substantially increasing; on the other hand, the profitability of a particular customer over the period of business relationship , Always increases.
Customer clubs are among the most comprehensive strategic tools that companies can use to protect their customers.
One of the main goals of the company's establishment of a customer club is to improve the overall profitability of the customer by maintaining customer loyalty. The preservative effect is thought to be achieved by:
1. Effect of customer interaction;
2. Knowledge about customer;
3- Effect of customer benefits.
A customer club is considered as an appropriate infrastructure to increase the frequency of interactions between the company and the customer (the effect of interaction with the customer) by creating opportunities for customer communication and receiving feedback from this connection.
The main goal of customer clubs is to increase organization knowledge about the customer (the effect of knowledge about the customer). From the time a customer signs up in the club, following any contact with him, the organization receives detailed information about the personal status of the members, interests and structure of their application.
Customer engagement for club membership depends on whether the club offers him distinctive benefits (the benefit of the customer's interest).
Customer retention chain:
At first glance, it is believed that these favorable effects directly lead to customer retention and subsequently to the success of the club economically. (figure 1)
First, there must be a distinction between the direct and indirect effects of customer retention.
The direct retention effect is based on the benefit of the customer's interests. This will only result if the club member establishes a loyal relationship solely for the purpose of membership and the perceived benefits associated with the company. This happens when a customer, for example, feels a more personal identity with the company and will be willing to use it for the many benefits that she can use as a member of the club (such as price premiums or dedicated services Such as Club Magazine) to be more loyal to the company.
The indirect effect of the effect of knowledge on the customer. This effect is achieved if the organization is able to handle the customer according to one-to-one marketing approach based on the information provided by the member of the club. In this case, the organization will be able to provide the customer with a more specific set of goods and services and will have the chance to increase its benefits by selling to different groups of customers. This kind of customer retention is indirect
Steps to create a customer club:
There are several steps to create an effective customer club. First, create a team of different disciplines. So that it's time to devote a strong / effective program to the fullest, then create the following steps (Figure 2):
1. Goals of the Club: Initially, the goals of the club should be clearly defined. Of course, the main goal of a customer club is to increase profits and market share. Other key goals of the customer club include customer retention, attracting new customers, creating a strong customer database, supporting other sectors by providing information or accessing information for them, and creating communication opportunities between their organizations and their customers.
2. Target groups: The main target group of customer clubs should be your most important customers, those customers who make up the bulk of your business, because creating these relationships is the most essential factor for your future success.
Younger customers (less important) and potential customers (potential) should not be left out of the club, but your major focus should be on developing a plan that suits the needs of your main customers. However, other customers will also benefit from such a program, but on the basis of this concept, target them to meet their specific needs.
Depending on the goals of the club, deciding whether or not to set their target groups is up to you.
If your goal is to create a complete database of customers, then a comprehensive definition of target groups is required. Another factor to consider is how to deal with potential customers or customers of rival companies. In some cases, a club can attract new customers, but it depends on the value and attractiveness of the Benefit Package.
3. Club benefits: The heart and soul of the customer club is the same as the one in which it is located. Choosing the right interests will make the club a success. Benefits must have a high perceived value for members of the club.
In order to find the right combination of hard (financial) and soft (non-financial) interests, it is imperative to adopt a value-oriented approach. This approach consists of three steps:
1. First, use the Brainstorming technique to list a potential benefit that focuses on the needs of target groups. The only limitation of providing attractive interests is the imagination of the project team.
2. The second step is to conduct small-scale preparatory research with the aim of filtering the most attractive and unappealing benefits from the list. This research can be done by a sample, asking them to evaluate and rating a variety of benefits. We also ask the interviewees to add new ideas to that list to make sure there are not any interesting things to do.
3. The third step is to conduct a large-scale survey on those ideas that are considered as best ideas for benefits. At least a sample of 250 people to be interviewed. Using techniques such as ranking scales, fixed-sum scales, or more complex and closely interrelated measurements, the value of other benefits is measured.
The result of this three-step approach is that the long list of results obtained in the first phase is divided into three groups: a small group of high value benefits, those benefits that are lower for the customer than the first group, and Those interests that are not worth the customer's view. Select the final benefits after considering the cost, feasibility and functionality of the first two groups.
The interests of a customer club must primarily relate to the company's core goods and services.
4. Financial Concept: After selecting the right interests for the club, developing a rational financial concept is the second most important step in establishing a customer club. The annual cost per client of a club can be for a final consumer club of between $ 1,500 and $ 2,500, and for a business club business for between $ 2,500 and $ 5,800, depending on type, size, and concept. The cost depends largely on the quality and size of the club, but poor quality, poor technology to provide services or people who are badly trained to provide services can greatly reduce the chances of a club's success.
In general, spending on a club should not be seen as a cost but rather as an investment on a marketing tool, a strategic imperative in today's competitive environment.
5. Communications: A customer club is mainly connected with three groups: with members of the club, with employees of its sponsoring company and with factors in the external environment, such as the media. There are many ways to communicate, including club magazine, news bulletins, or regular and permanent posts, a red line for the club, a website, visits or events at the club, or club stores. Contact with members should not restrict sales information and product brochures. Members tend to know what happens in the club, get information about new products, and read about topics that are of interest to the public.
Finally, the club must be linked to factors in the external environment in order to be able to use the media coverage and increase awareness of its activities. Having a broad coverage of the media not only attracts new members, it will also enhance the image of the company in the minds of the audience.
6. How is the club organized? A customer club is a complex organization made up of diverse individuals, including sponsoring companies, club management, external partners, financial partners and members. A club also includes diverse processes and tasks, including customer relationship management, finance, and issues. In order to manage the club properly and ensure that the operations are done well, a club service center can be established that serves as the focal point for all communication and club activities. Due to the complexity and overall goal of the club, which increases customer loyalty, the club's service center must have a high quality performance. Therefore, carefully select personnel, technology and other infrastructure.
7. Integration of the customer club with the organization: We must create a coherent financial support company between the customer club and the organizational structure of the company and also ensure that the full potential of the customer club is fully exploited within the company. Units such as marketing research, product marketing or research and development should be able to use the club's database or the club's own members to identify the problems they are facing and the issues that need to be corrected, or they can test new advertising programs, And many other opportunities. Club members show more willingness to participate in research than ordinary clients because they have stronger connections with their club products due to their specific membership status.
The club and other units should develop and develop an attitude of partnership and partnership, and the management of the company must also ensure that both of them realize that they are working to achieve the same goals and must In this way, help each other.
8. Club database: A database containing detailed and accurate information about your customers is a strategic weapon that will greatly influence the company's future success. Databases should be viewed from a strategic perspective, rather than a technical point of view. No company will be able to compete without full knowledge of its customers.
This information can be used for club activities, but also a valuable source of information that should be available to other units within the organization.
The Future of Customer Clubs: The overall success of a customer club depends on a few things:
* Organizational commitment supporting the club's establishment plan;
* Planning and implementation of various stages of the club establishment plan;
* The implementation of the program planned by the marketing and operational staff of the company should be simple;
* Understanding how club members / clients benefit from club benefits should be easy for them;
* The club must provide bonuses that increase the attraction and maintenance of customers.
These are the main components of a customer club. Nevertheless, it is surprising that many organizations are not at all interested in this list, which are preparing a customer relationship assessment program.
The main goals of a loyalty marketing program are:
1. Making measurable increases in sales and profits;
2. Increasing the frequency of visits or use by members / customers;
3. Maintaining more customers - Avoid turning customers to competitors - By providing incentives to build loyalty;
Reducing reliance on marketing tools such as mass media, by doing the following:
* Present products or send messages based on real and actual usage history.
* Use of information collected in the database to target the main potential customers.
In these two cases, the database is also used to store the information we have ... as well as to search for new information.
In a market environment characterized by growing competition, unpredictable and informed customers, and a lack of growth, efforts to create loyalty in customers become more important and may be considered as one of the most important strategic success factors. It's important for a customer club that can simply achieve its customer retention goals by doing its job. As companies gradually move towards one-on-one marketing, neglecting the importance of customer clubs can lead to organizational failure.
Creating an effective customer club is a difficult task. Choose the right way, a customer club can play an important role in your future success. The most important factors to consider are:
* Providing real perceived value to members;
* Creating and developing a rational and reasonable financial concept;
* Entire support by the entire organization - from top management to low level employees;
* Use potential club facilities to provide information to support other corporate units.
Valuable customer clubs have been developed in several European, American and Australian countries and can be effective in any industry.