The growth of the internet and comparison websites means that consumers can now quickly and easily find the cheapest and best deals for products. While this is good for consumers, it often means that businesses need to consistently find new ways to stand out and attract customers with imaginative products, enticing deals and sometimes cheaper prices.
Loyalty Program Types
Loyalty programs, however, are a popular method of attracting and maintaining customers. According to a Harris Interactive Poll performed for Transera, there are 2.6 billion loyalty program memberships in the U.S. There are different types of loyalty programs, but in general, they are a marketing system that offers rewards to customers for buying products. From the classic loyalty cards, popular with companies like Starbucks, which offer a free drink for a full set of stamps on a card, to niche-specific methods like online casinos’ no deposit bonus scheme, wherein you sign up at a new casino and you get an automatic bonus without paying anything at all, as shown on NoDeposit.ca.
But no matter what your sector, customer loyalty schemes are a very helpful marketing strategy to consider. There are many benefits to programs, and we’re going to look into some of them today.
Increase Customer Retention
Once a customer starts collecting loyalty points, for example, there is a strong incentive for them to return. If the customer is promised something free at the end of a circle of purchases, then they will likely consider that it is worthwhile to keep going back. If they go somewhere else, they risk being unsatisfied with the other product as well as missing out on a loyalty reward. Customer retention is one of the most difficult tasks for businesses and therefore if a customer feels like there is a reward for going back, it increases their likelihood of doing so.
A Well-Known Success Rate
Customer loyalty schemes are a tried and tested method. Many companies provide it and it is incredibly popular. A 2016 study found that customers who are members of loyalty programs, garner between 12 and 18 percent more revenue than non-members. Even if a customer doesn’t return for a while, they may find their loyalty card in their purse or receive a customer email, which can remind them of the scheme and make a spontaneous decision to utilize it. Although the initial set-up can be difficult, there is a reason why it is popular – because it works.
The Feel-Good Factor
A study for KiteWheel reported that one in four consumers are frustrated when a company fails to recognize them as a past or current customer. When the customer has received their reward, it is often a very satisfying feeling, especially if the reward is worthwhile. By have a loyalty program, you are demonstrating that you are not just solely interested in making money, you want customers to feel valued and appreciated. This boosts the reputation of the company, builds a repour with the customer, which in turn, further increases the likelihood that the customer will come again and even spread the word to other people.
Once they are Set up, You Can Relax
Setting up such a system initially can sometimes be time-consuming because you need to undertake research into what type of scheme best suits your business and customers. But this is normal for any new feature of a business and is insignificant compared to the potential benefits, and thus, once it is set up, you can relax and watch the rewards come in.
Therefore, there are clearly numerous reasons to adopt a loyalty scheme. Boosting customer retention, building strong customer relations, strengthening your company’s reputation and standing out from the crowd. A great way all around.
Lax
Setting up such a system initially can sometimes be time-consuming because you need to undertake research into what type of scheme best suits your business and customers. But this is normal for any new feature of a business and is insignificant compared to the potential benefits, and thus, once it is set up, you can relax and watch the rewards come in.
Therefore, there are clearly numerous reasons to adopt a loyalty scheme. Boosting customer retention, building strong customer relations, strengthening your company’s reputation and standing out from the crowd. A great way all around.
