As a business owner, you should be aware that a loyal customer is better than a new customer. This is because repeat customers tend to spend more money than new customers. Therefore, if a company can retain its customers, it can easily increase its profits by 95%. However, for today’s businesses, retaining customers is not so easy. Customers today have so many options available to them. With so many competitors available in the market, it can become difficult for you to keep your brand at the forefront of your customers’ minds.
Don’t worry, if you are looking for the best way to attract and retain more and more customers, you must try to set up a loyalty program. With good management of the loyalty program, you will be able to improve your sales as well as customer engagement. Loyalty programs are primarily meant to reward customers with something when they buy from your business.
Main benefits of loyalty programs
If you are considering introducing a customer loyalty program, you should know that a dedicated customer loyalty program offering loyalty benefits is a great way to thank 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 major benefits you can get by implementing a loyalty program.
#1. Better customer engagement: There is no doubt that a customer will join your loyalty program when they get value in return, such as discounts, offers and others that save money. But did you know that by joining your loyalty program, your customer also gives you the opportunity to connect and improve your relationship with them? Yes, when customers enroll in a loyalty program that offers benefits such as discounts or the ability to earn points, they are more likely to be interested in other current or upcoming events and specials in your company. About 79% of customers agree that the main reason for doing business with a brand is loyalty programs. Therefore, by designing and running 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 business over the competition. Once a customer becomes a loyalty member with access to special offers and discounts offered by your company, they are more likely to buy from you only instead of going to your competitors. Additionally, customers who keep coming back to your brand are those who are likely to spend more on their next purchase. Thus, the management of loyalty programs allows companies to increase their sales.
#3. Eliminates price competition in the market: Although customers are generally attracted to the brand that offers the most savings. However, competition based on price is not always the best way to win the race. By offering something unique to your customers in addition to the best price, you can significantly increase your business profits. Loyalty programs are one of the best ways to think differently and offer something better than what your competitors aren’t offering their customers.
- More word of mouth advertising: Word of mouth advertising is one of the best and most cost-effective forms of advertising that helps businesses promote their offerings. If you can fully satisfy your customers’ needs and wants, they will do word-of-mouth in return. Simply put, happy customers are more likely to share their feedback, experience, and benefits on loyalty programs with their friends and family members. In 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 to recommend a company that offers a good loyalty program.
- Better brand awareness: Designing and implementing a customer loyalty program that provides better offers and rewards to your customers can help improve your brand reputation. By allowing customers to save more on every purchase and providing them with various deals and offers with the purchase they make, you will be able to show them that you appreciate their support. Also, offering personalized content and service based on their shopping habits and interests will make them feel more valued. When customers feel more special and valued, they will prefer to stick with your brand for future purchases. This will ultimately create a positive impression of your business in the minds of your customers.
Looking at the benefits mentioned above, you must now have understood what benefits you can get with the help of a proper loyalty program management system. Investing in a loyalty program is worthwhile if it is carefully designed and executed. This will not only help reduce customer churn or churn, but also improve customer engagement and business profits.