Being a business owner you must be aware that a repeat customer is better than a new customer. This is due to the reason that repeat customers tend to spend more money as compared to new customers. Therefore, if a business can retain its customers, it can easily boost the profits by 95%. However, for today’s businesses, retaining customers is not that easier. Today’s customers have so many options available for them to choose from. With so many competitors available in the marketplace, it may become difficult for you to keep your brand at the top of the mind of your customers.
Don’t worry, if you are searching for the best way to attract and retain more and more customers, then you must try implementing a loyalty program. With proper loyalty program management, you will be able to improve your sales as well as customer engagement. Loyalty programs are mainly intended to reward customers with something when they purchase from your company.
Key Benefits of Loyalty Reward Programs
If you are planning to introduce a customer loyalty program, then you must be knowing that a dedicated customer loyalty program that provides loyalty benefits is an excellent way to say thank you to your customers for their trust and support. Loyalty programs are good for customers, but do you know how these programs can benefit your business? Well, here are some of the key benefits that you can get by implementing a loyalty program.
#1. Better customer engagement: No doubt a customer will join your loyalty program when he is getting value in return like discounts, offers, and others that help to save money. But do you know, by joining your loyalty program, your customer also gives you a chance to connect and improve relationships with them? Yes, when customers sign up for a loyalty program that offers benefits like discounts, or the opportunity to earn points, they are more likely to take interest in other ongoing or upcoming events and special offers in your company. About 79% of customers accept that the main reason behind doing business with a brand is loyalty programs. Therefore, by designing and executing the best loyalty program, you can easily connect with more customers and keep them engaged with your brand.
#2. Improved sales: Another key benefit of loyalty programs is that they encourage buyers to choose your company over the competition. Once a customer becomes a loyalty member having access to special offers and discounts offered by your company, they are more likely to purchase from you only instead of going to your competitors. Besides, the customers who keep coming back to your brand are the ones who are likely to spend more whenever they make the next purchase. This way, loyalty program management allows businesses to increase their sales.
#3. Eliminates price competition in the market: Though customers usually get attracted to the brand that offers more cost-savings. However, competing based on price is not always the best way to win the race. By offering something unique to your customers besides the best price, you can increase your business’s profits to a great extent. Loyalty programs are one of the best ways to think differently and offer something more interesting than your competitors are not offering to their customers.
- More word-of-mouth advertising: Word-of-mouth advertising is one of the best and cost-effective forms of advertising that help businesses in promoting their offerings. If you can satisfy the needs and desires of your customers fully, they will do word-of-mouth advertising in return. In simple words, satisfied customers are more like to share their feedback, experience, and benefits about the loyalty programs with their friends and family members. This way, they can convince many new trustworthy customers to buy from your company and become a loyal member. More than 70% of customers prefer recommending a company that offers a good loyalty program.
- Enhanced brand reputation: Designing and implementing a customer loyalty program that delivers better deals and rewards to your customers can help you in improving your brand's reputation. By allowing customers to save more on each purchase and offering them various deals and offers with the purchase they make, you will be able to show them that you value their support. Besides, offering personalized content and service based on their buying pattern and interests will make them feel more valued. When customers feel more special and valued, they will prefer sticking to your brand for their future purchases. This will ultimately create a positive impression about your business in the minds of your customers.
Looking at the above-mentioned benefits, now you must have understood what benefits you can get with the help of a proper loyalty program management system. Investing in a loyalty program is worth the effort if it is designed and executed carefully. It will not only help to reduce customer churn or attrition but will also improve customer engagement and business profits.