According to credible research, a business spends 5-25 times more to gain a new client than it does to sell to a regular one. The existing clients spend 67% more money than a new patron. Thus, it is apparent that customer loyalty makes a haul.
Many retailers are unable to create loyalty programs that effectively benefit from these valuable clients. Rewards, Recognition, and Relevance are 3R’s that can help businesses recognize the key elements of successful and powerful loyalty programs.
Reward-The 1st “R”
A reward for your customer can be as simple as a “Thank You”. Showing gratitude towards your customers for their faithfulness regarding your business or brand is easy and quite reasonable. Each loyalty program should offer some kind of reward to the customers who join it. You may offer an array of tangible rewards, including:
● Access to particular events, and more
Relevance- The 2nd “R”
On average, a patron is involved in over 10 loyalty programs, but can actively take part in only 7 of the programs. A customer-centric program brings more profits to a business. Customer-oriented brands listen to their customers’ and offer something the customers can cherish.
Relevance manifests the reward experience, which includes leveraging client data significantly. To find out what your patrons want and expect from your business, you can:
● Focus on groups
● Consider online client surveys
● Analyze your customer service calls, and so on.
Stop, evaluate, and understand the behavioral patterns of your customers and make your decisions accordingly.
Recognition- The 3rd “R”
The 3rd R of loyalty programs comprises identifying your best customers. You can achieve it by:
● Offering better deals
● Welcoming your patrons as a significant part of a special program
● Providing tiered rewards for enhancing loyalty
How a business acknowledges and distinguishes its customers as soon as they join a program are essential for creating long-term loyalty.How a business acknowledges and distinguishes its customers as soon as they join a program are essential for creating long-term loyalty.
Thus, the goal of all the loyalty programs should be to encourage long-term client loyalty that leads to more engagement, enthusiasm, sales, and involvement of new unanimous customers.