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Complete Guide to Salesforce Loyalty Management

September 29, 2023 eye-glyph 78

Table of Contents

    Having trouble engaging and retaining your customers? Could Salesforce Loyalty Management be the answer? To find out your answer, take a look at this blog.

    Customer loyalty is important for all scales of companies starting from retail stores to giant companies. According to Statista, the spending on loyalty programs was valued at 5.57 billion U.S. dollars in 2022. As spending rises by 23.5 percent on average every year, it is estimated that by 2029 spending will reach 24 billion U.S. dollars.

    Even though the business embraces loyalty programs strongly, 77% of rewards-based loyalty programs fail within two years.

    So, where does the problem lie?

    The failure of loyalty programs can be attributed to a variety of factors, including poor communication with customers, lack of personalization, and rewards that are not valuable or relevant to the customer, among others.

    Salesforce Loyalty Management provides a solution to these problems. With it, businesses can create an array of loyalty programs that match their customers’ needs to increase business value and retain customers.

    Here in this blog, you will get a complete understanding of what is Salesforce Loyalty Management, its features, and benefits, how it can improve customer retention, and so on.

    Ready to learn more? Let’s get started!

    What is Salesforce Loyalty Management?

    Salesforce Loyalty Management is a robust, customizable, and easy-to-deploy solution built on the Salesforce Customer 360 platform. It generates a single source of truth of customer data for businesses to enable personalization at scale.

    What is salesforce loyalty Management

    Salesforce Loyalty Cloud allows businesses across industries to build intelligent loyalty programs from beginning to end with clicks instead of code, that incentivize customers to engage more with the brand and drive repeat business.

    The Loyalty Management platform is integrated with Salesforce Digital 360, Services Cloud, and Tableau to create a fully connected loyalty experience across all customer touchpoints.

    Put in brief, it is an all-in-one inclusive solution for businesses across all industries looking to initiate a loyalty program. It serves them from the creation of a loyalty program to tracking its success to maximizing the amount of user engagement.

    maximize customer retention

    How Does Salesforce Loyalty Management Work?

    Salesforce Loyalty Management works to create a unified view of the customer’s purchase habits, and preferences. This information enables businesses to design loyalty programs that resonate with the customers to increase customer engagement and loyalty.

    When a loyalty program is up and running, Loyalty Management oversees customer enrollment through online registration, in-store signups, mobile apps, and other methods.

    Once users are enrolled in the loyalty program, the Salesforce Loyalty Program begins tracking their activities such as purchasing habits, referrals, social media, and so on. The information provides the basis for measuring the program’s success and improving it to make it more customer-focused.

    Features of Salesforce Loyalty Management

    The Salesforce Loyalty Management platform stands out for its feature-richness, which focuses on the customer experience. Here we have given you the overview of features of Salesforce Loyalty Management:

    Features of salesforce loyalty management

    1. Leverage Customer 360

    The biggest feature of the Loyalty Program lies in its capability of creating a 360-degree unified view of the customers. Starting from the initial engagement of customers to the redemption of rewards, Loyalty Management keeps track of every customer interaction across multiple channels.

    2. Set Up B2B and B2C Loyalty Programs

    The intuitive user interface of Loyalty Management enables you to configure loyalty programs from beginning to end with clicks instead of code that is geared toward your business and customers’ needs.

    3. Rewards Management

    The Salesforce rewards program is driven by declarative rules management, which enables the deployment of loyalty rules to maximize loyalty accruals and redemptions. Loyalty rules can be implemented quickly and easily with clicks rather than codes.

    4. Benefits Management

    Businesses can configure experimental benefits and automatically trigger loyalty-related actions such as service entitlements, vouchers, and so on. This results in saving businesses the time and effort required to manage loyalty programs.

    5. Actionable Insights and Performance Tracking

    Salesforce Loyalty Management is integrated with Tableau CRM. A single dashboard is accessible to all businesses, enabling them to view rich actionable insights regarding their loyalty programs in a streamlined manner. The performance and overall health of the program will be displayed in the dashboard to help businesses remain informed.

    6. Dynamic Promotion Management

    With Salesforce Loyalty Cloud, time-based loyalty programs can be configured to run at specific times. So that your loyalty program reaches the audience at the optimal time to ensure maximum engagement.

    7. Powerful Data Processing Engine

    The Salesforce Loyalty Management data model provides you with the ability to process a large volume of data according to different criteria, such as the balance of points between qualifying and non-qualifying currencies, the expiration of points, and resetting quality points.

    Stats & Industries Representing the Significance of Salesforce Loyalty Management

    Stats Industries Representing the Significance of Salesforce Loyalty Management

    In business, customer loyalty is vital, and Salesforce Loyalty Management is the key to achieving it. This system offers numerous benefits designed to elevate your business.

    Over 4,000 companies have already harnessed the power of Salesforce Loyalty Management.

    Revenue Revolution: Up to 20% Growth

    Businesses implementing Salesforce Loyalty Management have witnessed their revenue hyped by up to 20%. This impressive growth stems from the elimination of extra efforts required to keep customers loyal.

    Diverse Industries, One Solution

    Salesforce Loyalty Management is not confined to a single industry—it thrives across various sectors, making it a versatile and indispensable tool.

    global loyalty management market

    Retail

    In the retail world, Salesforce Loyalty Management empowers giants like Amazon, Walmart, Target, and Costco to offer exclusive rewards and experiences to customers. Think free shipping, discounts, and early access to new products. These top retailers have experienced growth with the potential of Salesforce Loyalty Management to supercharge customer loyalty.

    Healthcare

    In healthcare, stalwarts like UnitedHealth Group, Johnson & Johnson, Pfizer, and AbbVi leverage Salesforce Loyalty Management to elevate patient satisfaction, retention, and cost efficiency. It’s a prescription for success in an industry where patient care is paramount.

    Travel and Hospitality

    Travel and hospitality leaders such as Marriott International, Hilton Worldwide, and Hyatt Hotels Corporation have hopped on board, utilizing Salesforce Loyalty Management to craft personalized, flexible loyalty programs for travelers. Points, miles, vouchers, upgrades – the possibilities are endless, all driving customer loyalty and revenue.

    Consumer Goods

    Consumer goods giants like Nike, Starbucks, Sephora, and Proctor and Gamble are forging direct connections with consumers through Salesforce Loyalty Management. Rewards for purchases and brand engagement fuel valuable data collection, enhancing products and marketing strategies.

    Telecommunications

    Telecommunication service providers like AT&T, Verizon, T-Mobile, and Comcast are redefining customer loyalty with Salesforce Loyalty Management. Customers are happier, fewer leave and loyalty grows, all without extra work.

    Manufacturing

    Manufacturers like Bosch, Toyota, Honeywell, and Siemens employ Salesforce Loyalty Management to create B2B loyalty programs. These initiatives boost customer satisfaction, loyalty, and advocacy, leading to more referrals and repeat business.

    A Promising Future: The Global Loyalty Management Market

    The future is undeniably bright for Salesforce Loyalty Management. Grand View Research forecasts that the global loyalty management market will reach a staggering $14.59 billion by 2028, with a remarkable compound annual growth rate of 15.9% from 2021 to 2028.

    How Salesforce Loyalty Management Can Maximize Customer Retention?

    By evolving loyalty programs from a transactional to a human-centric approach, Salesforce Loyalty Management can help businesses maximize the customer retention rate. Here is how it can do so:

    Salesforce Loyalty Management to maximize customer retention

    1. Identifying Your Most Valuable Customers

    The first step towards establishing a loyalty program is to identify the most valuable customers that you want to reward.

    What are your strategies to identify your brand’s most valuable customers?

    Salesforce Loyalty Management takes down your hurdle of identifying the most valuable customers. By establishing a single view of the customer, brands can gain a deeper understanding of their customers throughout all touch points.

    This 360 view of customers enables you to identify the most valuable customers who spend significant amounts of time and money with your company.

    Salesforce Loyalty Management can even allow a segment of customers depending on their purchasing habits, demographic information, and several other factors to create loyalty programs for each segment.

    2. Setting Customer Retention Goals

    Every business is unique, so their customer’s needs and retention strategies. You have to set customer retention goals from the beginning of the loyalty program. Let us say that a customer has purchased five times from you in the past year, then you can set a goal for seven times.

    Salesforce Loyalty Management keeps track of your loyalty goals to make sure you are on the right track to achieve them as well as help you raise them if needed.

    3. Creating a Loyalty Program

    Following a successful assessment of the most valuable customers and their needs, you can proceed to create a loyalty program that incentivizes them to become brand ambassadors of your business and make purchases from you.

    The Salesforce Loyalty Management platform is an end-to-end platform that enables brands to quickly design customer-centric loyalty programs. With its proven customization capabilities and scalable infrastructure, the platform can be applied across multiple industries without limiting itself to one.

    4. Encouraging Customer Participation

    Among the reasons why loyalty programs fail is low participation. Salesforce customer loyalty program offers businesses multiple strategies for ensuring maximum loyalty program engagement.

    Salesforce Loyalty Management can be integrated with the Marketing Cloud thanks to Marketing Cloud Connector. Data from Loyalty Management will be collected and used by Marketing Cloud to send personalized emails to customers to motivate them to take action and participate in the program.

    5. Measure and analyze the Loyalty Program’s Performance

    Tableau CRM for Loyalty Management provides comprehensive insights into the loyalty program’s performance. Centralized dashboards help businesses keep track of engagement, member acquisition, and so on.

    6. Identifying Areas of Improvement and Implementing Changes

    Over time, customers’ needs have changed, resulting in the need to identify changes and implement them in loyalty programs to keep them aligned with their needs. Salesforce Loyalty Management excels at this.

    By providing a single source of truth for all loyalty program member data, including real-time data, Loyalty Management can identify areas for improvement and suggest the best way to address them.

    How to Implement Salesforce Loyalty Management?

    Inquisitive about how to evolve your loyalty program into a loyalty experience? Let’s walk through the step-by-step process on how to implement Salesforce Loyalty Management:

    steps to implement salesforce loyalty management

    1. Assessing Your Business Needs and Objectives

    The very first step underlying the Loyalty Management program implementation is determining the needs and goals of your business.

    Every business has different goals to achieve with its loyalty program, and so does the opportunity to customize your Loyalty Management. Salesforce Loyalty Management consultant will explore your business & industry needs and will create a roadmap for implementing the solution to meet your requirements.

    2. Designing and Configuring Your Loyalty Management

    The process of designing and configuring Loyalty Management begins with replacing the siloed data with a 360-degree view of the customers. Salesforce implementation partners can customize the dashboard of Loyalty Management to make sure the required information is visible.

    3. Integrating Loyalty Management with Salesforce Clouds

    Loyalty Management can be integrated with several Salesforce Clouds to ensure the maximum outcomes from your every loyalty.

    Loyalty Management integration with Sales Cloud to enable the sales team to identify cross-selling and upselling opportunities to maximize the customer retention rate.

    By integrating Loyalty Management with Marketing Cloud, marketing will be empowered to drive customer engagement with personalized experiences.

    Furthermore, Loyalty Management can be integrated with external systems like customer data platforms, alongside third-party solutions available on AppExchange to create more effective loyalty programs.

    A Salesforce development company can help you ensure the seamless integration of Loyalty Management with Salesforce Cloud and third-party solutions to address the precise needs of your business.

    4. Testing and Launching Loyalty Management

    Before deploying the Salesforce Loyalty Management, thorough testing is required to ensure that every configuration is working as intended. After Loyalty Management has been tested and confirmed to work smoothly, deployment can be carried out to bring the next-level loyalty experience to your customers.

    Salesforce Loyalty Management Implementation: Step-by-Step Guide

    Inquisitive about how to evolve your loyalty program into a loyalty experience?  Let’s walk through the step-by-step process on how to implement Salesforce Loyalty Management:

    1. Create a Loyalty Program

    Begin by crafting a loyalty program tailored to either B2B or B2C customers. This program is designed to enhance the value your business offers to loyal customers and channel partners.

    Every business has different goals to achieve with its loyalty program, and so does the opportunity to customize your Loyalty Management. Salesforce Loyalty Management consultant will explore your business & industry needs and will create a roadmap for implementing the solution to meet your requirements.

    2. Loyalty Tier Groups

    Establish loyalty tier groups to define different tiers and the associated tier model for member recognition. These groups help structure the program and determine how members move up through the tiers. Salesforce implementation partners can customize the dashboard of Loyalty Management to make sure the required information is visible.

    3. Loyalty Tiers

    Categorize loyalty program members into tiers based on their loyalty activities. As members engage more with the program, they ascend to higher tiers, unlocking increasingly exclusive benefits and rewards.

    4. Loyalty Program Currencies

    Define loyalty program currencies, including qualifying and non-qualifying currencies linked to the program. Qualifying currency reflects a member’s engagement with the program and is linked to a specific tier group. It plays a vital role in tier evaluation.

    Non-qualifying currency represents the points members earn for redemption purposes.

    5. Loyalty Program Members

    Enroll members in the loyalty program you’ve created. A member may participate in multiple loyalty programs within your organization. Ensure that member information is synced and updated as needed across all loyalty program activities.

    6. Integrating Loyalty Management with Salesforce Clouds

    Loyalty Management integrates seamlessly with Salesforce Clouds, enhancing loyalty initiatives.

    • In Sales Cloud, it identifies cross-selling and upselling opportunities for better customer retention.
    • With Marketing Cloud, it drives personalized customer engagement.
    • External integrations, including customer data platforms and third-party AppExchange solutions, further optimize loyalty programs.

    A Salesforce development company can help you ensure the seamless integration of Loyalty Management with Salesforce Cloud and third-party solutions to address the precise needs of your business.

    7. Testing and Launching Loyalty Management

    Before deploying the Salesforce Loyalty Management, thorough testing is required to ensure that every configuration is working as intended. After Loyalty Management has been tested and confirmed to work smoothly, deployment can be carried out to bring the next-level loyalty experience to your customers.

    By following this step-by-step process, Salesforce Loyalty Management empowers businesses to effectively create and manage loyalty programs, recognize member achievements, and drive customer engagement and retention.

    Real-world examples of Salesforce Loyalty Management Implementation

    Case: Retail eCommerce Struggling in Implementing Loyalty Management for Gaining Customer Loyalty

    Outcomes of Implementing Salesforce Loyalty Management

    Our Australian client operates in the Food and Beverages industry. They manufacture and sell their products online and through physical stores. They use Salesforce to manage their products and sales.

    Now, they aim to implement a loyalty points program to boost customer retention and business growth. Importantly, they’ve already integrated their physical store data into Salesforce.

    Problems faced:

    1. Including Loyalty to the Existing System – They wanted to incorporate the loyalty points for the customers within the existing system and they wanted to have a simple understanding of the solution.
    2. Providing Festive Discounts and Offers to Customers – They struggled with the demand to initiate time-sensitive discount sales for various festivals and holidays, searching for a solution that aligned perfectly with their specific timeframes.
    3. Additional Privileges To Customers – Their team encountered the constant need to expand access to additional offers and privileges to their existing customers.
    4. Scattered Data of Interaction with Customers – It was a high-tide requirement to implement a centralized system for managing loyalty points and effectively tracking all interactions related to loyalty programs.

    Solution Offered:

    For challenges like this, Salesforce Loyalty Management Implementation was the ideal solution for them, pertaining exactly to what their system required and our team did like this:

    1. Loyalty Management System – We provided the client with an implementation of the Salesforce loyalty management system which was integrated with their existing Salesforce setup which allowed the client to use the customer data and associate the loyalty programs and points with customers. Additionally, we customized Salesforce’s loyalty package to align with the customer’s business model.
    2. Promotion Creation – Our implementation is to provide users with the option to receive additional offers or promotions for sales or offers for a defined period of time for all items or specific items. This implementation is done by setting up a sale promotion, defined as a time promotion.
    3. Tier Definition – To enhance customer privileges, we enabled a feature in the loyalty management system to establish distinct loyalty tiers, each with its set of privileges and additional benefits tailored to customers based on their tier membership.
    4. Management of Loyalty Programs and Loyalty Points – With this implementation, loyalty programs were created that defined the loyalty points to be given to the customers, These points were managed with Salesforce and were a centralized system for reviewing the customer details and loyalty points.

    Result: Our efforts have led to

    • Customer Retention improved by 45%
    • Sales increased by 60%
    • Customer satisfaction rate improved by 35%

    Salesforce Loyalty Management Pricing

    Salesforce Loyalty Management has three different pricing models to make it affordable for all businesses. Let’s strengthen the basic understanding of the pricing model:

    salesforce loyalty management pricing
    1. Loyalty Management – Starter: Priced at $ 20,000/org/month. For quickly designing, configuring, and implementing loyalty programs, it is of great value.
    2. Loyalty Management – Growth: Priced at $35,000/org/month. Launching and managing dynamic, personalized loyalty programs is made easier with this plan.
    3. Loyalty Management – Advanced: Priced at $45,000/org/month. This plan empowered businesses to run multiple loyalty programs from a single platform.

    The selection of the Salesforce Loyalty Management pricing model is subject to the needs of the organization. Have a consultation with a Salesforce implementation partner to learn which plan makes more sense to you.

    Expert Salesforce Implementation Partner

    Final Take

    Maximizing customer retention is the best way to increase profitability and growth in your business. Salesforce Loyalty Management helps you build personalized loyalty programs and helps you develop a loyal customer base for your business.

    Looking for a partner to take advantage of the capabilities of Loyalty Management to grow your business and profit?

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