29 Mar Why A Good Membership Program Is Important For Your Business?
A survey suggests around 79% of consumers have reported that they have joined at least one membership program, subscription or loyalty program. As retailers find out that consumers are attracted to membership benefits, it has driven many retailers like Mcdonalds, Lotus and Senheng Malaysia to launch and further enhance their membership system. One thing most of us could agree on is that the membership system could bring a positive impact to businesses. However, how does it exactly help businesses in their customer relationship management (CRM)? Here we will share 3 reasons why membership is important to your business.
Why A Good Membership Program Is Important For Your Business?
- Understanding Your Customers’ Buying Behaviors
- Customer Segmentation And Targeting
- Automating Your Marketing Campaign’s Promotion
Understanding Your Customers’ Buying Behaviors
If you are a member of a shop, most probably you have been asked to provide your membership information for the shop to identify your membership identification. As a retailer, this allows your shop to track the products and services that your customers have bought from the store ever since their first day of their membership, enabling you to understand your customers’ shopping preferences. For instance, information such as the average amount of spending for the customers, their preferred brand and even their preferred shopping date and time of the day could be collected through your membership systems. With that, you can use this collected information to predict the buying patterns and sales trend of your shop, thereby serving as a guidance for you to plan your upcoming promotions and campaigns.
Customer Segmentation And Targeting
Beyond fulfilling your customers’ sales demand, the implementation of membership system would also allow you to segment your customers under different tiers according to their loyalty level and value. For instance, highly loyal customers who spend more in your shop as compared to average customers could be promoted to a higher tier membership that offers exclusive privileges to them. For example, it could be special workshops, limited edition freebies or extra membership points. Through these additional membership benefits, the highly loyal customers would feel more recognized. To continuously enjoy these exclusive benefits, this group of customers will be tempted to stick with your brand, hence increasing your customer retention.
Automating Your Marketing Campaign’s Promotion
During membership application, customers’ basic information such as their phone number, email address or even their social media account details will be obtained. As a retailer, you could utilize these details by blasting marketing campaigns and promotion messages to approach them via telemarketing, email marketing and social media marketing. If you have an app for your store, you can even blast notifications to your customers and remind them about your limited time deals and flash promotion to entice your customer to make a purchase. Moreover, all your marketing campaigns and promotions could then be delivered to all your members without you manually approaching them one by one. Thus, this would automate your marketing campaign and promotion, and allow you to instantly engage with your customers at your own convenience.
As we can see, a membership system is essential for you to grow your business. Nevertheless, membership is just one of the components in CRM. To enhance your CRM system , you may also need an e-commerce solution, a business intelligence (BI) solution, an inventory management solution and etcetera. Interested to know what are the available retail solutions that are essential for your business success? Wondering where you could find affordable CRM solutions that suit your business needs? Look no further, in Senwave, we aim to help our customers to save their cost by suggesting the most suitable solutions for their business. Feel free to reach out to Senwave, for the solutions to your problem.