Loyalty programs are the THING right now. Most businesses use it, and customers are OBSESSED with it. And why not? It makes business sales boom, and customers feel happy and appreciated. Its success over the past years has been unmatched. With many blogs and articles discussing why it works, investors are keener to dive into this field and use loyalty programs to increase sales and build a consistent fanbase. Loyalty programs are more than hot deals and making offers customers cannot refuse. It's a meticulous and crucial part of getting businesses to improve their services and work on long-term plans to maintain longevity in the market.
Now, a question arises in investors' minds: "Is my line of work suitable to apply for a loyalty program?"
We need to see where loyalty programs thrive the most to answer that question. We introduce you to the top fields where loyalty programs are a HUGE SUCCESS.
P.S there are lots of industries that use loyalty programs. This list summarizes the most agreed-upon industries that successfully used loyalty apps.
Coming in at number one
1- Restaurants and Cafes
Regardless of who you are, age, or taste, we all LOVE food and have a dying passion for a morning coffee that wakes our senses. So it makes sense that making a loyalty program for a restaurant or cafe is successful.
Paytronix and PYMNTS report shows that 48% of restaurant customers used loyalty programs in at least one type of restaurant.
And with many types of restaurants and cafes worldwide, it's safe to say using a loyalty program and making specified ads/offers to customers is always a sure thing in the F&B field.
2- Retail
Who doesn't love shopping? Food, clothes, and everything in between. If there's anything that includes all types of people, it is going shopping.
Retail has always been a very booming industry,
(BCG) reports that 19.5% of total global retail sales are made through e-commerce, while Statista showed that E-commerce as a percentage of total retail sales worldwide has increased to reach now 21%
Yet the inclusion of the loyalty program made it reach a whole new level.
Applying loyalty programs has allowed retailers to have many options to tap into new customers and maintain current ones through knowing their purchase habits and then creating customized ads tailored for them.
3- Cosmetics
Facts: Women, especially millennials and Gen Z, are the majority of the customers in the cosmetics field. Due to the beauty industry being a competitive and diverse field, many companies apply loyalty programs to stay ahead and keep expanding their customer base. From offers, discounts, and giveaways, the loyalty apps in cosmetics are a win-win for both businesses and customers.
4- Hair salons
Now when it comes to hair salons, everyone gets skeptical.
"How do I trust a stranger with my hair?"
People rely on personal recommendations when choosing hair salons because they give non-customers a full review of the staff and services.
When it comes to loyalty programs, which work on luring customers by offering special discounts and promotions for your regular customers, this enables hair salon owners to use loyalty programs to their fullest potential to tap into new customers.
5- Gym and Spa
People love making new year's resolutions to be in better shape or work out till the summer season hits for that summer body, yet the truth is people get excited on January 1st of the new year, and by the end of that first week, they already give up. A neverending challenge faced by gym owners. However, it's quickly resolved with loyalty programs; with its special offers and motivating selling messages; it makes people eager to go to the gym and work out.
6- Vitamins and supplements
Gym enthusiasts or people with vitamin deficiencies, it's become common nowadays that people are looking for ways to be healthy without facing any problems. Which makes the vitamins and supplements industry rises fasters and stronger. With all this information, people want a company that reminds them of their monthly vitamin subscription and offers hot deals and rewards. Again this is achieved easily with loyalty programs.
Reaching lucky number 7 on our list
7- Education
Online education has been on the rise since Covid-19 spread in 2020. As people stayed home, students worldwide sought online educational platforms to give them proper learning. Customers will often use the loyalty program by generating offers, referral rewards, and even gaming for points. What makes loyalty programs unique in education is that they make people have fun while studying.
Conclusion
Loyalty Programs' perks are not limited to increasing sales. As seen in this blog, many businesses use loyalty programs to understand their customers better and further improve their services. So if you open a new business, check what area is applicable to harness the true powers of loyalty programs to your favor and see how things will be improved.
