Why Customer Loyalty Programs?

1. Increase revenue: Increasing customer retention helps boost profits simply because loyal customers already have trust in your brand and therefore are likely to spend more. According to the research referenced above, increasing retention by just 5% through customer loyalty programs can boost revenue by 25 to 95%.

2. Save money: While creating and implementing a loyalty program is an investment, customer retention strategies are often less expensive than attracting new customers. Acquiring new customers can be 25% more expensive than retaining current customers.

3. Gather valuable data: Most modern consumers prefer a personalized experience, with more than half of Generation K and Millennials reporting personalization as a high priority.  By encouraging your customers to fill out profiles as part of your loyalty program, you can get the data so you can not only personalize customer experience, but to also create targeted marketing campaigns, increase your bond with customers, and even implement your referral program.

4. Make consumers feel appreciated: A comprehensive, personalized loyalty program will make your customers feel like they have an emotional connection with your brand and will increase customer patience in case of mishaps. You can increase appreciation by incorporating “surprise and delight” points or rewards for special occasions such as a customer’s birthday.

5. Increase sales: By personalizing the consumer shopping experience through gathered data, you can make better suggestions to your customers, which will then increase the likelihood that your customers will purchase a suggested product.

6. Measure loyalty through engagement: Program data allows you to track analytics and view reports, measuring the efficacy of customer loyalty on your sales. Measure important retention metrics like program engagement, repeat customer rate, and purchase frequency.
 

Brochure: Download