Loyalty Program Have 3 Benefits for Your Business
Loyalty programs are essentially a marketing system offering rewards for customers, the purchase behavior of your customers and differ between businesses.
You can offer various loyalty programs such as points card in which a customer accumulates a certain amount of points which can be used towards something within your store. Loyalty programs can have several benefits in the long run a few of which is as follows.
1. It stewards relationships with existing customers
The biggest misconception in the loyalty programs is that they are expensive, but pursuing new customers is more expensive from keeping existing ones. According to a report, an existing customer is seven times less expensive than acquiring a new one.
Customers always want to save money and loyalty programs quite simply build loyal customers. It is true when a customer see the reward after a reasonable amount.
Shoppers want recognition that goes beyond monetary benefits. Providing something exclusive or something more personalized to your customers within your loyalty. Allow your customers to be a part your brand story and community. Allow your customers to collect points through sharing things on social media by inviting their friends or by participating in contests. Give loyalty members a sneak peak of new products before they’re released or inviting those to exclusive events is only a perk of being a member.
2. It helps increase sales
Customer retention is improved and incentives for your customers to buy are provided by loyalty programs. If incentives are provided to your reoccurring customers that are in tune with what they want, you’ll be drawing them in and encouraging them in and encouraging them to come back and of course spending money.
According to a study 12-15% loyal customers to a single retailer represent 55-70% of total sales. It represents that half of the sales are coming from a small percentage of your customers, so nurturing these relationships are important. Loyalty programs not only help to increase number of repeat customers but also increase the amount of repeat purchases.
3. It attracts new customers
Traditional marketing tactics aren’t obsolete but it’s also important investing small portion of amount in towards a loyalty program. Instead of investing in getting new customers, you will reap the rewards and getting the existing customers coming back.
62% of consumers don’t believe they are enough rewarded from the retailers for their loyalty. It can increase the chances of customers to change their buying habits. Make your customers feel like you care by giving a new reason to stay. As you start to nurture these existing relationships better, you can not only have these customers getting a reason to stay but also a reason for new customers to getting to you.
One of the most beneficial marketing tactics can be loyalty programs which will not only help to increase sales but also help to develop a brand image for you that make customers feel like a community and less like a corporation who is only after money.