ARAW for Merchants: Help You Rewards Your Customers
Hello guys! How's your day? We meet again in another article about ARAW. This is probably going to be the last article in my series of ARAW articles. Starting from tomorrow I'll probably write another article, so don't forget to read them, alright?
In this article, I'm going to talk about how merchants can use ARAW and what benefits that they'll get by using ARAW (including the customer benefits later on), especially in terms of gaining more profits by creating a loyal consumer base. I'll provide you with some statistics and nice infographics that I find on the internet, to help you gain a better understanding of the matters we're talking about.
Without further ado, let's begin the analysis.
Merchants & Customer Loyalty
According to Dave Thompshon at Entrepreneur, customer loyalty is the most important factor in business today.[1] Having a loyal customer means more business opportunity. If you don't have a loyal customer, the chance of your business running smoothly or repeated will decrease. To put it simply, customer loyalty is what makes merchant business keeps on-going.
Statistics show that more than 80% of business profits come from 20% customer from their previous business cycle. This means almost all of the business profits come from their loyal customer. A failure to create a solid & firm customer base will greatly affect the business performance.
Source: Slideshare
Another effect of customer loyalty for the business is word of mouth marketing. Usually, a satisfied customer will recommend your business to his/her friend/family. Because of this, you can say that customer loyalty is an indirect way to do marketing. A well-designed customer loyalty program, therefore, needed to make sure your business can satisfy your customer. In return, you'll have more customer to serve later on.
The bad news is, customer loyalty is not something that is easy to achieve. It is not given, and you must get it by yourself. You can't buy customer loyalty, you have to make or earn it, not only once, but every day as long as your business is running, just as Geoffrey James said[2]. This is a tough task, isn't it?
Different Techniques to Increase Customer Loyalty & Its Problems
The most common form of customer loyalty program outside the e-commerce industry is a special card that can grant their user a special discount or rights when they buy or use other services partnered with their card provider. A user needs to register and update their registration in order to continue using or gaining the benefits of the card.
Customer loyalty programs influence buying decisions. Source: Slideshare
In the e-commerce industry, the most common loyalty program is the cashback that user can get when they buy something. Another thing is flash-sale, coupon, or giveaway. At first glance, it seems everything is good enough, however, MarketsAndMarkets survey shocked us. It shows that almost 76% customer fails to use or gain their shopping rewards (read ARAW Whitepaper page 20). This will eventually make users move to another platform to try their customer loyalty program.
Not only that, another shocking statistics by KPMG in 2016, in the US, more than 63% of companies haven't been able to provide or integrate a loyalty program for their customer. By this data, we can understand that more than a half of companies in the US are struggling to provide a good loyalty program, that eventually will make them struggle to gain profits because the customer can easily move to other competitors.
Source: Vtiger
Why does that happen? Personally, I think it is because the complexity & lack of transparency to provide customer loyalty program in traditional markets. Even if there are customer loyalty programs available for the customer, they have to go through complex steps to use it, or they have to complete a list of requirements that sometimes time-consuming. A new business will also have a hard time to integrate customer loyalty program for their customer because they have limited resources, partnerships, and so on.
ARAW Unified Loyalty Program
So how does ARAW intends to solve those problems above? Why should merchants use ARAW? Will, it brings benefits for the customer too? That's the key questions that we should ask.
In order to solve those problems above, ARAW is bringing a unified loyalty program for merchants & customer on their platform. Unified means that the platform and the resources that need to be used, and everything related to claims or withdrawal is already provided within the ARAW ecosystem.
With ARAW Unified Reward System, merchants can easily give cashback/reward in ARAW tokens everytime customers buy their goods. This means there is no need for a customer to do an additional task or for merchants to build a platform for it, everything will be done in light with ARAW platform.
For new business, using ARAW platform will greatly reduce the cost to build a simple yet effective customer loyalty program & platform. They don't have to go through the hassle of building networks, producing the special card and so on. They can build their custom loyalty program using ARAW platform as they wish.
For an existing business, using ARAW Unified Rewards will help them solve their existing problems of complexity and transparency on their existing customer loyalty platform. Of course, this will make an existing business save a lot of money that can be utilized for another purpose such as increasing their rate of production, hiring an expert to expand their business and so on.
Bottom Line
ARAW Unified Loyalty Program will bring huge benefits both for merchant & customer. This easy to use platform will make customer loyalty program easier to set up and easier to claim, therefore solving the core problems in the current e-commerce and loyalty industry.
[1] https://www.entrepreneur.com/article/244138
[2] https://www.inc.com/geoffrey-james/4-keys-to-customer-loyalty.html
Note: This article is not a financial recommendation. The author, ARAW and other parties mentioned in this article is a separate entity. The author writes this article based on his own understanding of ARAW, readers should read the original document of ARAW by themselves. The author shouldn't be responsible for any actions taken by the readers, including but not limited to: joining ARAW bounty program, participate in ARAW token sale, and etc.
Important links that you should check:
ARAW Website: https://arawtoken.io
ARAW Whitepaper: https://arawtoken.io/assets/araw_whitepaper.pdf?v1.7
ARAW One-Pager: https://arawtoken.io/assets/araw_onepager.pdf?v1.0