If you don’t have a customer loyalty program in place, you’re in trouble. Read on to learn why customer loyalty programs are so important.
As a business owner you probably always think about growing your business by attaining new customers. However, your priority should stand with sustaining your business by gaining the loyalty of your existing customers.
Marketing research shows that business profits increase by 25%-95% with just a 5% increase in customer retention rates. This means that you need to make implementing customer loyalty programs a priority.
A loyalty program is designed to give your current consumers incen
tives to keep coming back. What will keep your customers hungry?
Types of Customer Loyalty Programs
Loyalty programs work for all types of businesses. But you need to choose which type of program works best to keep your loyal customer returning.
This simple rewards program brings customers back by offering a free item after so many purchases. For instance, buy seven coffees and the 8th is free. People want free, even when it means making more purchases.
People absolutely love to get special promotions for special occasions like holidays, anniversaries, and birthdays. A happy birthday makes a happy customer.
A growing number of companies find referral programs beneficial. They work by offering the loyal customer money, products, or services, for bringing new consumers in.
People enjoy feeling like they are helping other people by bringing them to a business with great products or services. Furthermore, they feel more connected to the business after recruiting and enjoy getting rewarded of course!
Customers love loyalty cards. This customer loyalty program allows them to carry something tangible to show that they’re an integral part of your business.
Moreover, they love to swipe the card to see special savings at the register. Everybody loves to feel important and save a little cash.
A point system can use the customer’s name, email address, phone number, or another identifying property to keep track of their purchases and dole out points. When customers reach a certain amount of points, they get a special discount or free item.
The Benefits of a Customer Loyalty Program
Read on to learn the reasons why you should put in the effort to build a strong rewards program.
They Keep Old Customers
People will continue to spend their money with you, as opposed to with one of your competitors if they continue to build reward points from spending. Keeping your customer feeling valued and appreciated will increase their loyalty. It will also keep them spending regularly.
They Recruit New Customers
When people get excited about something, like a cool freebie or cash back, they want to share the excitement with their friends and possibly even on social media, which will pique new interests alone. Adding a rewarding referral program will only increase the recruits!