Turning your customers into loyal ones is very important as studies show that retaining a customer boosts up the profit by 95% instead of getting a new customer. This is where the Loyalty Programs play an important part as incentivizing a loyal customer is the only way to keep them coming back for more. A Loyalty program is essentially just rewarding the customers for their frequent engagement with the Brand.
Let us find out some of the benefits of having a Customer Loyalty Program.
Do not compete on price!
When customers just have a product in mind then they will keep looking for it and keep comparing at a price point till the very bottom. Try and set up a personal connection with the customers. Understand their needs and their preferences to give a more personalised and customized customer experience. This sets aside the Brand in the customer’s eyes and they stop looking at just the price then. Customer Loyalty Programs are a highly effective way to reach out to the customers and appeal to their emotional sides which can create an unbreakable bond with the Brand.
Customer retention matters
Studies show that acquiring new customers is much more expensive than retaining the existing ones and it’s also true that the existing Loyal Customers are 67% more likely to spend money than the new ones. The odds clearly states that it is beneficial to retain the customers rather than constantly trying to persuade the new ones. Besides, the existing customers were also once newly acquired with a long-term promise so it would be great to come through on that promise and take care of the existing customers by encouraging them to engage more with the promise of rewards and surprises.
Focus on Customer Lifetime Value
This defines the customer’s relentless dedication towards the company and the profitable gains to the company from such a dedication. The company can not give up on the fact that by making sure that the Loyal Customers stick around for long will in turn benefit the company itself in the long run. The profitability of a customer’s relationship with the company is based on how well the company provides a satisfactory experience on every engagement. Every satisfactory engagement of a customer with the company marks the beginning of a long-lasting loyal relationship. Loyalty programs are very useful when it comes to giving a well-rounded experience to the customers at their every engagement.
Build Personal Relationships
Loyalty Programs help secure a personal relationship with the customers. Catering to the customer’s needs, knowing their preferences and their intentions and frequency of buying helps to design an optimum loyalty program. A well-executed program shows the customers that you care about them, and it secures the bond with them for a long-term loyalty.
Build a network of Brand Advocates!
Successful customer loyalty program helps to make the customers happy and satisfied. If the customers are satisfied with what you provide, it motivates them to visit your websites more often and keep buying from you. More profitable engagement with your brand helps them become your advocates, they talk about you to their families and friends and direct the audience towards your brand through word of mouth. In the modern marketing playground, customers trust their peers so fostering loyalty customers converts them into your advocates who will speak for your brand and that is just smart marketing.
A good rewards program will attract new customers in number of ways, and it impacts all the metrics that are important for the growth of a successful business. Selecting the perfect loyalty program and implementing it in a right way is all you need to consider after knowing all the benefits it can gain your business. You must make sure that it fits well with your brand and meets the long-term business requirements. Here at Giift.com, we just so happen to know the perfect loyalty experts to lead you through your journey into a great customer retention program. Our loyalty platforms enable seamless operations and digital experiences with a wide choice of rewards that influence customer behaviour – both for transactions and brand interactions. Take your 1st step towards a successful loyalty program now!