Loyalty programs have existed for a long time now, offering members who are consistent with the business’ perks and benefits that non-members do not get. These programs have shown to increase revenue to the company and also help with customer retention. These loyalty programs can also range from a small free product to a whole event created just for them. No matter what benefit you choose for your customers, you will always get more in return.
Here are some ways that loyalty programs benefit your business:
Help with Customer Retention
In today’s world, there are thousands of different businesses offering either the same types of products or goods. Therefore, the customer will have to choose between different companies. The decision might be easier for them if one company is offering superior service, however, most of the time it is a lot more difficult to make. This is where a loyalty program can help. Benefits attract customers all the time. The more they see that they could get something in return from making purchases, the greater chances of people going in that direction and patronizing your business. These programs are not difficult to create either. Some companies offer a site with a members only section. In this member-only-section, there can be specific events planned for them; exclusive deals, or an exclusive section or even store, just for them. Research has shown that when customers are involved in a loyalty program, the more sales the company retains.
People like competitions and a bit of challenge once in a while. It gives us something to look forward to. Oftentimes, when consumers see a sneak peak of the rewards they could possibly get, it gets them more excited. The most common loyalty program involves someone buying a certain number of products, and then getting the next one free. People get excited about the prospect of a free item and therefore spend the extra money and buy more of that product to get the free one. A great example of this can be seen with coffees. Fact is when someone is working towards a free coffee, they are much more likely to order more than one in the day from the same place. If you have many customers doing this, your profits will skyrocket in no time.
Natural Advertisement and Brand Advocates
With these loyalty programs, you are likely to create customers who value you and your business model. These customers then are much more likely to spread the word about your programs. They become a natural advertisement or brand advocate to you as they will attempt to convince their friends and family that choosing your company is the right decision. This can help you save money on wide-spread advertising. Not only that, but creating these brand advocates is much more effective at attracting new customers than a billboard would.
An effective loyalty program will increase your profits, help with customer retention, and build brand advocates. The amazing thing about these programs is that they are cheap and easy to set up. Spend some time and try to think of a way that your loyalty program will reward your customers. The benefits far outweigh the work the program will need. What incentives are you leaning towards?
Image Source: BigStock.com (licensed)