1) Stop competing on price with competitors (eg. Comfort Taxi, Ride) – A loyalty program gives Customers a way to surprise and delight them by rewarding for something that previously went unnoticed. Every time we reward our customers for their spending in our Temasek Polytechnic Outlets (for sign ups, referrals, purchases etc.) we will appeal to their emotional side and start building a connection with them via customer behaviors, able to bring out best offers, basket mix and savings.
Eg. Grab Loyalty Temasek Polytechnic Reward Card (GLTP) will reward their members with one way (2 x free ride) on the month of their birthday and a basket of fruits to delight them.
2) Win back lost customers – The chances of converting a lost customer are greater when enrolled in a loyalty program. This can easily be enabled through the loyalty programs “call back” the customers who have not been inactive for a period of time. The point is that we know about a defected customer much more than a new prospect and chances of conversion of a defected customer is much higher, than a new one.
Eg. If customer have so many loyalty program and overlook on Grab Loyalty Temasek Polytechnic Reward Card (GLTP) by having this “call back” system, it will remind members on the existing loyalty program that we have for them.
3) Retain existing customers – Loyal customers spend 67% more than new ones. These figures are hugely significant, and highlight that retention is one of the most cost-effective ways of increasing your profit margin.