The Value of Creating a Customer Loyalty Program
Apart from your team members in the business, your customers are your other key player in the game. Treating your clients right should be of utmost importance because they, in turn, can service your company in more ways than you think.
While maintaining and improving your quality of work for your customers is essential, you can practice another effective technique to build stronger relationships with them. A win-win strategy that might just give your business the boost it needs is a well-crafted customer loyalty program.
If you’re still looking for reasons to draft and launch customer loyalty programs for your company, here are some valid points you might want to consider.
4 Key Benefits of Customer Loyalty Programs for Your Business
According to a study conducted by the Rare: Group, a patron’s loyalty to a brand stems from two things: likeability and trust. To hit two birds with one stone, come up with a solid loyalty card offer and engage through rewards programs.
Now, let’s take a closer look at how these initiatives can translate as an advantage for your business.
- It boosts customer retention
Sometimes, growth in a business starts from working with what you have. Loyalty programs are exactly that, as it highlights working with and nurturing your current pool of loyal shoppers.
Your retained customers are valuable assets to your brand. Not only do loyalists bring the most revenue, but they can also advocate and represent your brand to a wider reach. So, make every person count, and maintain as many healthy connections with your market as possible.
Whether in the form of cashback, exclusive discounts, or redeemable points, entice your loyal customers with exclusive perks and rewards to keep them coming back for more. Just think about the findings by Frederick Reichheld of Bain & Company from his research: an increased customer retention rate, even as low as 5%, can yield increased profits by 25-95%.
- It attracts more customers
Rewards programs are an organic way to create brand advocates. Meaningful incentives make the perfect buzz for a word-of-mouth story that can aid in customer acquisition, as it promotes both trust and likeability in the method.
Let’s take a two-way reward system like a referral program as an example. By encouraging patrons to introduce your brand to their families and friends with a promised bonus in the end, it drives the loyalty cycle of your business forward. In other words, the more you continue to care for existing customers, the more you’ll receive chances to tap into new accounts.
- It increases your sales and lowers your costs
With its ability to bring in new customers and maintain existing ones, it’s apparent that customer loyalty programs are an effective tactic to grow your business’ revenue. Data confirms this, with 66% of buyers sharing that earning rewards and enjoying incentives can influence their spending habits.
But apart from welcoming bigger profits, these customer engagements can reduce operational expenses in your company as well. Knowing that customer acquisition can be costly, customer retention efforts become the perfect alternative to secure the bag without breaking the bank.
Your efforts directed to the right points in your business can help elevate your brand in performance and sales to greater heights.
- It makes your customers feel valued
It’s important to remember that work doesn’t end after every transaction. Business is a cycle, so you have to take an extra step to ensure that your customers are delighted after closing a deal with your company.
Again, your clients are your partners in the field. Let your relationship run like a two-way street. Make them feel seen and special through exclusive bonuses and premium prizes, as your customers reciprocate through supporting and recommending your brand.
Ready to Start Rewarding?
If done right, a loyalty program can benefit both your business and your customers—it’s a win-win.
Start by mapping out how the plan would look like and incorporating what your market might want out of it. Then, strategize your reward cards and programs for launch to carry your business and loyalty cycle to success.
Rina Ruiz is a lifestyle writer for Go Rewards Philippines, an all-around rewards app. She touches on a variety of topics such as technology, wellness, and home improvement.