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The presence of digital technology has clearly creates benefits both for individuals and businesses. This technology dramatically creating new ways in connecting companies and customers. Companies need to understand their customers in order to respond to customer needs better than their competitors. For some businesses, it makes the customer loyalty program becomes more important.

Unfortunately, in some cases the program through a digital channel is not match with customer loyalty program. Some companies switch their loyalty programs from printed format to digital format in the form of online coupons, email, and mobile applications. But often this thing is underpinned for cutting costs, not to build closer relationships with customers.

Not only that, sometimes switching format creates because the offline program is does not run properly. However, if the communication with customers is not good, then changing to any format will not change the situation. Digital technology opens up many opportunities, but if you can not use it well, it does not make any difference.

Digital technology is more than just a means to save costs, a new business unit, or tactics. Customers data or customers loyalty program will be more profitable if the company is able to think strategically about the digital role in building customer-oriented business.

Customer loyalty programs should be viewed as a key platform for growth. Digital technology is a tool to do it. There are five digital solution that can support a customer loyalty program.

Provide Data

Customer data is one of the advantages to be gained through loyalty programs. Digital mechanism is now able to produce data without separate infrastructure. A number of significant data if taken correctly and combine it with existing data will help companies understand their customers and improve communication in order to meet their needs.

Insight from the site or social media can help companies to understand customer buying motives. Unfortunately, many companies who have a website still consider this channel as a complement and does not realize that there is new data that can be taken from there. So change the way we look to the digital channels, and we will get a pleasant surprise from there.

New Mechanism for Dealing with Customers At Anytime And Anywhere

Customers have many choices and opportunities to connect with anyone in the digital platform. Therefore it is very important to expand the business strategy through the digital channel loyalty program. This strategy can maximize the opportunities to connect with customers through the most relevant way.

Provides Digital Data for Traditional Media Channels

Digital technology opens up many opportunities in the media that were previously closed. Digital media data at the individual level allows us to see the customers target that matches with specific communication channels. Not only that, the data also allows us to perform measurements that connects online data with offline sales data to understand the effectiveness of the media. With the relationships between online and traditional media, we can take measurements and obtain a clear ROI.

Digital Payment Solutions

Some businesses have released an e-wallet, and some have created their own way of transaction. On the one hand this program can be a threat of disintermediation loyalty program, but on the other hand also opens up opportunities. Customers simply bring a wallet (with a lot of cards in it). However, with so many cards they have, the customer will probably forgot the programs that we offer. Therefore, the presence in the minds of customers is the key. Digital payment solution would be preferable, but in order to succeed you have to keep your brand on top of mind of customers, both in awareness and confidence.

Strengthen Trust

New channels, new data and new service providers add complexity in managing data and customer preferences. This is strengthen by the issue of personal data security which is increasingly concerning by customers. Trust and values is the key for creating relationships with customers, especially if they have to share personal information.

Therefore, companies should be able to explain transparently about the security of personal data and be honest about the value provided to customers. Loyalty program is a tremendous platform to strengthen and sustain trust. You do this by providing value through the shopping experience.

Philosophy and loyalty approach will always be the company's competitive advantages that makes them valuable in the eyes of the customer. Therefore, loyalty programs should not be removed from the priority simply because there is a new digital media which more sleek. The program must be seen as a key platform to drive growth and connect the online and offline, both for companies and customers.