3 Min Read
Ever been to a café that gives you a cute little card with stamps on it for each caffeine rush purchased? Or perhaps you, like everybody else in Melbourne, has ordered food off Uber Eats when you just can’t be bothered to run to the shops and received a $5 voucher after a few weeks to come back and do it all again. That, my friends, is a customer loyalty program in it’s simplest and rawest form. So, let’s take a look at the benefits of a loyalty program.
A customer loyalty program motivates your customers to be unwavering in their business to you when your business offers them incentives too. What’s more, if you do it often enough and effective enough, you’ll have us heading in your direction before we even realise there are alternatives. Human nature, really! There are various types of customer loyalty programs out there, and no set boundaries on what a customer loyalty program can look like or offer.
(We would advise to keep it simple – Customers can also be stupid too!)
Check out our top 4 winning benefits of a customer loyalty program that, might lead to revenue, but offer additional great benefits for your business. In 4 minutes time, you’ll soon be on your way towards familiar and friendly visits from repeat customers!
If your business is not a large corporation with infinite resources, budget and outlets, it is sometimes difficult to stand out and rise above the competition. This is where the primary benefits of a loyalty program becomes your best friend. Customer Loyalty Programs are sales-driven, yet a personal way to connect with customers (and we all know, a happy customer means a returning customer). Even if all you are selling is coffee, it is human behaviour for one to return to a place that offers them a free cuppa after their fifth order. Incentives like this keep your customers in your store and away from your next door neighbours beans.
(Even if they sell better coffee or at a cheaper corporate rate!)
Whether you are aware of it or not, when you offer a loyalty program to your customers, you are inevitably and almost accidentally conducting market research – something that is extremely important in maintaining a successful business. Through trial and error of various programs, you will begin to see the sort of incentives that your clients find desirable – and on the flip side, what they aren’t too fussed about. Using this collected information, you can attach the most sought-after rewards to specific products that you are most interested in sharing with your clients and use this as a basis for marketing campaigns such as social media.
You know what they say, your best marketing managers are your customers! You’ve been a brand advocate at some point in your life – when you recommend a certain product or store to your friends. Positive reviews from happy, satisfied customers can do a world of difference to how successful your business is – sometimes more so than many marketing campaigns can. The more a customer is rewarded for their loyalty, the more likely they are to leave you good reviews and share their great experience with your business with others. Additionally, happy customers tend to stick with your brand or business for a long time. Through loyal customers, your business is ensured to grow organically as well as through digital marketing.
Along the way, like every business on this planet, you would have ended up with a few dissatisfied, defected and churned customers. Do not fret, for all is not lost. Customer win-back experts have found out that there is a high success rate in approaching “lost” customers or winning their business back through new loyalty programs. It may sound impossible, but think about it – you have advantages with lost/past customers that you do not have with new customers. This includes past purchase history, their contact information, and their preferred communication channel. Experts have found out that loyalty programs can be an incentive in themselves to win back customers of the past – Just be damn sure you give them a great service next time!
So folks, if you haven’t already implemented the benefits of a loyalty program in your business, you may want to think of trying it out in 2019. It’s simple, cost effective and extremely rewarding.