Businesses are now using customer loyalty programs more frequently than ever before. These businesses recognize the value of maintaining current customers. testimonials
For various reasons, customer loyalty programs have been given fresh recognition in recent years. First, because customer loyalty programmes have a range of advantages for businesses. Above all, they have become an expected part of their experience. However, merely having a traditional loyalty programme is not enough in today’s market. A survey found that 42 percent of North Americans will stop shopping after two bad experiences with a brand they are loyal to.
Here are just some of the advantages of client loyalty programmes.
1. Increase income: Increasing customer retention helps boost profits. A brand has the trust of loyal customers and is likely to spend more. According to the research cited above, increasing retention by just 5 percent through customer loyalty programmes can increase revenue by 25 to 95 percent.
2. Save money: It’s an investment to create and implement a loyalty programme. However customer retention strategies are often less costly than attracting new customers. It can be 25 percent more expensive to acquire new customers than to retain current customers.
3. Gather valuable data: Most modern consumers prefer a personalized experience, with personalization reported as a high priority by more than half of Generation K and Millennials. As part of your loyalty programme, you can get the information by encouraging your customers to fill out profiles to personalize the customer experience. It creates targeted marketing campaigns, increases your customer bond, and even implement your referral programme.
4. Make consumers feel appreciated: A comprehensive, personalized loyalty programme will make your customers feel like they have an emotional connexion with your brand. And, in the event of mishaps, will increase customer patience. By incorporating “surprise and delight” points or rewards for special occasions such as a client’s birthday, you can increase appreciation.