All of this has had a profound impact on the market. Therefore, if you’re leading a business strategy you should focus your investment on defining the high value of your products and adapting to your new customers buying behavior rapidly by offering them loyalty programs. According to research carried out by Forbes, 43% of customers spend more money on brands they’re loyal to than on competition.
No time to waste; keep reading to know more about loyalty programs and how they can make a meaningful difference for your emerging brand. 🚀
So... What are customer loyalty programs?
Customer Loyalty Programs are used by any brand that has customers to entice them to get back to their store or website more than once, rather than spending more money on attracting new ones.
Brands obtain great value from setting up a loyalty program starting from understanding their customer experience better, increasing their customer lifetime value, boosting customer retention all the way to maximizing their revenues and overall growth.
Through the loyalty program, brands can offer:
- free’ products or services
- promo codes and coupons
- rewards
- exclusive perks
- cashback
- access to unreleased products
Loyalty programs help you get ahead of the competition and shift your focus from product-centric to customer-centric by understanding your customers' needs and motivations that drive their purchase decisions. Also, they help in building trust between your brand and customers.
The benefits of loyalty programs
Increase customer engagement
The main motive behind loyalty programs is to drive your customers to buy continuously from you. As the more they buy, the more rewards they will claim. This way you’ll improve your brand consideration and encourage your customers to increase their engagement with your brand which will in return increase the conversion.
Collect and leverage data
Loyalty programs are not just about rewarding customers, they also provide you with tons of insights and data about your consumer behavior.
Typically, brands can track their customers’ shopping behavior and acquire their data, when they sign up for the loyalty program by submitting their personal information and navigating through the website or the app. That may not seem so much at first glance, but if 1000 users decided to share with you their contact information, this will 100% help you get to know your customers individually. Hence, you’ll be able to personalize content and offers for them.
With the insights generated from a loyalty program, you can enhance and personalize the user’s touchpoints throughout the entire customer journey.
Increase customer retention
Customers tend to lean towards a brand that makes them feel special. Show them a royal treatment for being loyal! 👑
Loyal customers will frequently recommend your business to others and save you a lot of money by doing free-of-charge word-of-mouth marketing.
A Loyalty program will help you increase your customer lifetime value by offering unique rewards and experiences that are tailored to your customers, advancing your personalization strategy, and making every communication feels like a one-to-one conversation between you and them.
Grow revenue
With a loyalty program, you’ll get all figures on the rise ☝
A well-designed and implemented loyalty program has proven to bring more profits to your company for a reduced cost and generate more sales and revenue.
It simply increases the profitability of your business by encouraging the customers to repeat their purchases and increase the referrals. Also, it can help you reduce operational costs and introduce premium services.
Golden tip
When setting up a customer loyalty program, try to deviate a bit from the norm. It shouldn’t be always about the revenues and increasing profits (Though we know that this should be the goal of most businesses) but make it about more than just the money you make. Make it about sharing the same values with them by tapping more into why your brand exists in the first place. And if you thought about it, people are not loyal to brands, they’re loyal to the values these brands stand for.
Conclusion
The search for the ideal customer loyalty program is never a piece of cake, there are thousands of loyalty programs out there, but at Zeal, we work just as hard to take that burden off your shoulders and make sure we find the perfect program that can help you grow your customer base by leaps and bounds. Talk to our sales team now and they will take care of the rest. 🤝
