Did you know customers that emotionally connect with businesses have a 306% higher lifetime value? If you’re wondering how to attract new customers or get your current customers more engaged, the answer is a loyalty program.
Customers will be more attracted to your product when they know you’re willing to give back. Check out these reasons why your business needs a loyalty program.
Attract New Customers
All customers love to hear the word free. If you’re ready to attract new customers, a rewards program can help give you a little boost by offering free rewards, discounts, and/or points towards purchase.
A good loyalty program will offer new customers discounts and savings for signing up. Not to mention, they will remain attracted to your products if they’re able to keep accumulating rewards over time.
After new customers sign up, you will also be able to add them to your mailing list so they can continue to receive offers.
Increase Your Revenue
It’s more expensive to generate new clients than it is to keep your existing client base happy and engaged with your brand. If you treat your customers well, they’ll stick around.
A well-established loyalty program can help increase your customer retention, which can mean increases in your profits of 25% to 95%.
Gather Data About Your Customers
When you ask your customers to sign up for a loyalty program, you’re bound to collect valuable information about your customers. Having this data at your fingertips will provide you with insight into who your customers are and their typical buying behavior.
The more you know about your customers, the more you can customize offers and incentives to fit their needs.
Show Your Appreciation to Your Customers
Customers love to know their favorite brands appreciate them. Having a loyalty program helps build a better connection between businesses and their customers.
Loyalty programs allow businesses to continue to surprise their customers with special occasion rewards such as holidays and their birthdays.
Fosters Better Communication
A loyalty program allows businesses to bridge the communication gap with their customers. With the customer information gathered via their loyalty program, businesses can communicate with customers the launch of new products and special offers.
Emailed offers or discounts help keep your brand top of mind. Ongoing communication with your customers establishes a voice and personality for your brand which help set your business apart.
Advantages of a Loyalty Program for Small Businesses
A loyalty program for small businesses can help you save money, show your customers appreciation, foster better communication, and more. Are you ready to start your own free loyalty program? Let Perxi help you. Contact us to get started.