A loyalty program is a dedicated scheme that rewards consistent customers with benefits and perks for purchasing your business’s services or products regularly. While a loyalty program can cost your business a little extra, there are plenty of benefits for you. Indeed, companies such as Barnes and Nobel, IKEA and Kohl’s all reward their customers with a loyalty program. Below, we explore three advantages such a scheme can offer you.
1. Building connections
For a start, loyalty programs can help you build and strengthen ties with your customers. By rewarding your customers for supporting the business, you can increase customer satisfaction and make customer service run more smoothly. As a result, you should find it easier to retain your customers in the long term. On top of this, a carefully executed loyalty program can boost the image of your business. Happy customers will rave about you to friends and family, and you’ll soon find that you have a reputation for caring about your customers. And by implementing a loyalty program, your business will be able to actualize these benefits.
2. Higher ROI
There’s a high ROI for using a loyalty programs too. They can be one of the most effective investments for you to boost total sales. Indeed, research from Finextra suggests that customers in loyalty programs are 62 per cent more likely to spend with your brand. Meanwhile, 59 per cent of customers in the loyalty program are also more likely to select your brand over a competitor. And by incentivising these loyal customers to recommend you to friends and family, you can easily spread the word about your business too.
3. Attracting new customers
Finally, a solid loyalty program can help you attract new customers and grow your business with a boost in revenue. For a start, a loyalty program can alert potential customers to your business. If they’re browsing your products online or in-store, the idea of benefitting from their purchase can help motivate a consumer to take the plunge and buy from you.
On top of this, the loyalty program can boost your brand awareness. Satisfied customers will recommend you to friends, allowing you to naturally grow your business. These perks can also fit neatly into your marketing strategy. By spreading the word about your loyalty program on social media, you can attract new customers who might not necessarily have given you a chance otherwise.
If you’re looking to boost your sales and find new customers, then a loyalty program could be the way forward. And with the advantages outlined above, your business should be set for a boost in plenty of other ways too.