Nowadays, it seems that every business offers a loyalty program to their customers. Almost all consumers have at least one loyalty card or currently availed into one. By the looks of its trend, it seems that it’s working for these businesses. But what is it exactly? Is it important for our business? Will it help your company grow?
Let’s talk about its definition first. For consumers, a loyalty program is some sort of rewards program offered by a company for those customers who frequently buy. Usually, it provides discounts, freebies, pointing system that people can use to buy, and many more. It also seems a way for companies to encourage customers to buy frequently. For businesses, it is a marketing effort– structured and long-term– that aims to reward customers in exchange for their loyalty to the brand. Aside from that, businesses use this program to collect customer data and encourage sales.
Benefits of Loyalty Program for a Business
Since it’s a marketing strategy, its goal is to help grow your business. But let’s explore the key benefits of a loyalty program:
From the word itself, a loyalty program is for loyal customers. To reward them for trusting your products or services. Also, it encourage them to keep buying and buy more. Most importantly, to retain them. Loyal customers are the ones who buy frequently from you and not afraid to try the other offerings you have. They assure sales and can even generate 30 times of ROI.
Attracts New Customers
A good loyalty program also attracts new customers. For example, if you offer discounts and freebies upon signing up, then these new customers will ignore asking themselves if they want to buy from you or not. Because most of the time, consumers want to spend less and get more. Aside from that, a good loyalty program can encourage existing customers to refer your products or services to new ones through word-of-mouth.
Helps Collect Customer Data
Nowadays, collecting customer data is essential in your marketing campaign. A loyalty program encourages customers to sign up, thus giving details that you need to connect to them and form an effective marketing strategy.
Creates Brand Advocates
Smart buying decisions are always being shared by people on the internet, especially on social media. Everyone seems to want to be a helping hand. Which is good. And if your loyalty program is great, you can expect customers who loves it to become your brand advocates. They will brag or share the benefits you provide to them.
Move Ahead of Competition
The best loyalty program can defeat even the most successful companies. Or it can take out the competition from your customers’ minds. With your loyalty rewards, they will only think about your brand to get those incentives.
Make Price Out of Equation
Rewarding your customers lets you connect to them to an emotional level. They tend to no longer think about the price of your product/services if the loyalty program rewards them well.
Save More and Earn More
The program is an effective strategy to retain customers. Focusing on these existing customers saves you a lot while earning more.
Truly, there are a lot of things that benefit your business with a loyalty program. Aside from those, you can make your customers feel being valued and appreciated. Those are the feelings that can make them stay longer with you and encourage others.