15 Aug 2023 | Author: Adam Boother
Building a successful customer loyalty programme with eSIM
Why brands need loyalty programmes
The most obvious objective of a loyalty programme is to retain existing customers. Increasing retention rates by just 5% can boost profits by as much as 95%, and the cost of recruiting new customers is nearly five times more than nurturing existing ones.
By offering customers products and services that are of real value to them, businesses can build a sense of appreciation and exclusivity that encourages customers to continue engaging with the brand year after year. Loyal customers also tend to recommend their favourite brands to friends and family, and giving people something to celebrate is a great way to get new customers on board. Word of mouth marketing from satisfied customers remains one of the most potent ways to build a brand and attract new business, and in today’s social media-obsessed world, good experiences travel fast.
How to develop a great loyalty programme
A good loyalty programme delivers rewards that incentivise customers to spend more. But a great one fosters a sense of affinity and commitment, demonstrating to customers that they are understood and valued. Even in a digital world, customers want to feel that they “belong”, so tailoring rewards to individual preferences and behaviours can significantly enhance a sense of kinship that’s crucial to the success of the programme.
Rewards should be attainable and within easy reach — today’s consumers have short attention spans and demand fast results, which means they’re far more likely to engage with brands that deliver on their promises and do so within a short space of time. Rewards should also be regular and consistent, with ongoing communication to build excitement and reinforce value, and perks that solve problems and surprise and delight go a long way towards fostering deeper emotional connections between brand and customer.
Those who do loyalty programmes well understand that it’s not just about short-term gains, but long term relationships, and all relationships require effort and understanding. Ultimately, the effectiveness of a loyalty programme depends on getting to know the target audience, their motivations, and the value they seek from their interactions with the brand.
Why eSIM is the ideal loyalty programme reward
In the battle for loyal customers, brands need to find a compelling way to make what they’re offering more appealing. Those looking to step up their loyalty programme game are rightly seeking out “the next big thing”, and eSIM really hits the spot. The eSIM market is growing at an exponential rate, and according to latest figures is set to cross over 500 million units by the end of 2023. This makes it the perfect opportunity to get in there early and offer something completely different.
Until now, loyalty programmes have rarely — if ever — included mobile data, because it has been so complex to provision. But because eSIM is completely digital, businesses can now make it as easy to deliver as an Amazon voucher.
New types of rewards ideally need to be graduated by value and size so the same basic proposition can be offered to everyone — that’s easy with eSIM, but not so much with other perks like cinema tickets and meals for two. Rewards also need to be controllable in terms of how long they last, and eSIMs are very easy to manage and control in this way, as they have a clear expiry date. Working with a partner like eSIM Go gives brands total flexibility over this, customising bundles to start/stop at a time that works for them and managing all interactions through an online portal.
And let’s not forget referrals. Like loyalty programmes, referrals also need rewards, which tend to be voucher based (e.g. get referred to a gym by a friend and you’ll both receive a £10 voucher for a high street brand). This is a major sticking point for brands, because what appeals to one customer may be a complete turn-off to another, and adding the option to “choose your own reward” just adds to the complexity. eSIM is an easy win, because who wouldn’t fancy a little extra mobile data when they travel abroad?
Why brands that embrace eSIM in their loyalty programmes are hitting a hot button with their customers
There’s no doubt that eSIM is the future of connectivity, and consumers all over the world are ditching plastic SIMs in favour of their digital counterparts. Here are just a few reasons why this new era of connectivity is such a hit with consumers:
Better user experiences
User experience plays a pivotal role in loyalty, so the simplicity of eSIM makes it an easy win.Traditional SIM cards require physical handling, insertion and activation, but because all the technology is embedded in the handset, eSIM instantly eliminates all that time consuming fiddliness and faff.
The embedded nature of eSIMs means there’s no risk of losing or damaging a physical SIM card and troubleshooting can be done easily via an app, which combine to make for a much easier user experience. This extends into aesthetics, too. With no need for a SIM card slot, mobiles are instantly more streamlined and sleek — a big hit with fans of minimalistic, contemporary design.
Affordability and flexibility
Customers remember when someone goes above and beyond to make their lives easier, and with eSIM, brands can solve problems and become a trusted champion.
eSIM technology enables customers to switch between networks without having to physically swap their SIM cards, which gives them access to the best deals and network coverage. This is particularly pertinent for businesses in the travel industry, whose customers have been relentlessly penalised for using data when travelling abroad. Brands can now create a sense of trust and loyalty by presenting them with affordable, flexible data wherever they go — a big win at any time, but especially in the midst of a cost of living crisis.
Customers are becoming increasingly conscious of brands' environmental efforts, and a move towards eSIM technology certainly helps promote a greener, more forward-thinking image. eSIMs are significantly more sustainable than their plastic predecessors, which emit almost double the amount of CO2 emissions. A more eco-conscious approach can resonate with environmentally aware customers, potentially enhancing loyalty and advocacy for the brand.
eSIM takes customer loyalty programmes to a new level
Loyalty programmes are vital tools for businesses looking to foster lasting relationships with their customers. eSIM takes these relationships to an entirely new level, because it enables brands to deliver targeted messages quite literally to the palm of their customers’ hands. They can now be guided through multiple touchpoints, which not only instantly adds to revenue but also provides invaluable data insights that deepens understanding of their interests, likes and dislikes. This presents brands with a unique opportunity to become a trusted, consistent voice throughout the entire customer journey — wherever in the world it takes them.
Get in touch today to find out about how eSIM Go can help your business drive customer loyalty and grow your brand.