There are many reasons why businesses are encouraged to create customer loyalty programs. It is a cost effective way to win your customer’s trust and grow your business. The Best customer loyalty program can help address some of your most important concerns about growing your business. It can be so effective that it can work as part of your marketing campaign as well.
Explore the key benefits of having a customer loyalty program:
Boosts Revenues.
A loyalty program helps in increasing your profits. Loyal customers trust your business, which encourages them to spend more. According to research, when you increase customer retention by just 5%, your revenues can increase by as low as 25% and by as high as 100%. The program helps in giving incentives to customers that they actually desire. This helps in bringing them back and spending more on your products or services.
No More Price Competition.
The Best customer loyalty program help you move ahead of the competition. It does away with the need to compete on price. It adds great value to your product/service that keeps drawing new and existing customers to your brand. When you reward someone, you are connecting with them at an emotional level. This puts price almost out of the equation. This further helps your customers see your brand as something more than a place to buy products/services.
Draw New Customers.
Your rewards program can do much more than retaining your existing customers. You can also use it to attract new customers. Offering discounts and points for signing-up can draw the attention to new customers, encouraging them to joining your mailing list. If your program is simple and allows easier access to rewards, more customers would want to buy from your brand. Besides, word-of-mouth publicity by your existing customers can further help promote your program to new customers.
Build Brand Advocates.
The Best customer loyalty programs can turn your customers in to brand advocates. You will be getting much more for the bargain, compared to not having such a program. Many customers like to not only get value for their money, they also like to help others make the right buying decisions. According to surveys, 7 in 10 millennials want to help their family and friends to make smart buying decisions.
Save Big Money.
It is well known that acquiring new customers is an expensive and time-consuming process. It is much cheaper to generate business from existing customers than searching for and drawing new customers. Loyalty program makes it possible for you to attract new customers without having to spend big on the process. Studies show that retaining an existing customer costs only a fraction of what it costs to acquire a new customer.
Access Valuable Data.
The benefits of having a loyalty program go even further. It also allows you to gather data that can be used to personalize the customer experience. Part of the process requires getting data from customers when they sign-up. This data can be used for personalizing their buying experience and in creating highly effective marketing campaigns. The result is building a strong bond with your customers that keep bringing them back for more.
A loyalty program helps in making your customers feel appreciated. They feel like being valued by your brand. Every time you surprise them with rewards, you are giving them a bigger reason to stick with you and promote your brand. It helps retain customers, increase customer lifetime value, draws in new customers, improves communication, and helps build relationships at personal levels that go a long way. Thus, there are many reasons to create a loyalty program.
