Loyalty Programs are Critical
Why loyalty programs play a critical component to business success.
With consumers fully engaged in digital connectivity, it’s no mystery as to why businesses big and small are turning to loyalty programs to attract and retain loyal customers. These organizations know the immense value a loyalty program, especially a digital one, delivers when it comes to retaining customers and securing long-term satisfaction.
According to a 2014 study by Loyalogy, restaurant loyalty programs increased visits by 35%.
There are several compelling reasons why businesses today should not ignore this up and coming trend. Employing a quality digital loyalty program now will transform your business for years to come.
Loyalty programs help grow your business cost-effectively
While initial investments in a loyalty program may seem great, they pale in comparison to dollars spent constantly pursuing new customers. The customers you retain will result in growth of business that overshadows the expense you incur to maintain the program.
According to Bain & Company, it costs six to seven times more to acquire new customers than it does to keep one. Loyalty programs help you keep customers who frequent your business happy, which helps to increase sales, provides free marketing, and grow membership. It also helps boost the reputation of your business – who doesn’t share a great find with a good friend?
Loyalty programs create happy customers
Loyalty works because it personalizes the customer experience. A well-designed rewards program will offer what matters most to each and every member, creating repeat customers. The value it delivers speaks to each member, bringing them back for more. The reward may be a discount, a free meal or item, or elevation into the next tier of rewards.
In addition to rewards, the meaningful communications that occur as part of the program engages and excites consumers, leaving them with a feeling that their merchant knows them and knows what they’re looking for. Customer satisfaction fuels future growth.
Loyalty programs help you market your business better
Digital loyalty programs are an effective marketing tool. They provide a platform from which small businesses can harness and leverage data that is invaluable to market research. A loyalty program offered through an app becomes a portal from which both loyalty members and merchants extract value. Customers accrue points and redeem in-store or digital rewards, and receive engaging notifications from the business. The business collects data and trends, allowing it to improve and refine the program.
The data drives smarter communications, rewards design and communications. A business is able to engage with its loyalty members on a level that goes beyond each purchase that’s made.
The time to act is now…
There is no better time than now to seriously consider a digital loyalty program to improve the quality of the relationship between your business and your customers, and improve your bottom line far into the future.