Customer loyalty programs are effective tools for increasing customer engagement and retention. In fact, according to the Harvard Business Review, companies with an intuitive customer loyalty platform and strong customer loyalty program have the opportunity to grow their revenue 2.5 times quicker than their competitors. With the positive outcome customer loyalty programs bring; businesses should keep themselves updated with the latest strategies.
As a business owner, you can offer your customers more than just points and discounts. Numerous tried-and-tested blueprints will guide you through utilizing and making the most out of your customer loyalty program.
The infographic below can help you build the most effective customer loyalty program for your business. Through it, you’ll explore the importance of customer loyalty, various types of loyalty programs, and how to build a successful one.
Customer loyalty results from buyers having a pleasant experience with your business, building trust. It’s a long-term bond between you and your customer, manifested by their eagerness to engage with and purchase from you over your competition.
Repeat consumers do a variety of things to prove their loyalty; some of these definitive actions include:
Businesses need customers to succeed. But for customers to continuously transact with you, they must be satisfied with your products and services. Customer loyalty can’t happen if you don't satisfy their needs. While new customers are good for business, retaining old patrons is easier for companies since they help you expand and maintain high earnings.
Current customers spend more than new ones because they’ve already tried your products/services and can attest to the quality. There’s a 60–70% probability of a sale for existing customers than new prospects. New customers are more difficult to persuade and spend less money than loyal, repeat customers.
Loyal customers present multiple benefits to your business, such as solid recommendations to peers, repeat purchases, positive testimonials about your customer service, and an adamant belief in your product/service. As a result, they become your brand ambassadors. This is why customer retention should be at the core of your goals.
Below are some customer loyalty program examples you can explore and incorporate into your business.
Establish what your brand expects from a loyalty program. Understanding the program's aim is crucial to ensuring top-level buy-in and the ability to benchmark in the future.
It would be best to focus on overall engagement over time rather than transactional metrics. You can brainstorm how to reward loyalty program members for their social media shares, survey responses, and other forms of brand advocacy.
Loyalty programs can give you a chance to gain insights about your customers. By offering services or treatments, you can discover something new about them. For example, all new members can claim a free year of membership or a ₱1,000-discount at one of your partner institutions. The decision taken by each new member will reveal a lot about that person's needs and preferences.
The best loyalty programs are seamlessly linked to customer databases. You can collect and use important data to boost sales and improve the customer experience.
Referral rewards are a simple and effective approach to brand awareness. Not only are your customers rewarded for bringing in their friends, but if those friends become customers, they’re more likely to be loyal customers too.
Statistics show that consumers trust personal referrals or recommendations 92% of the time. This shows how referrals can help you reduce churn and enhance customer retention across the board, so you must make it a priority.
Changing your rewards to keep things interesting is an excellent way to get the most out of your customer loyalty program. While a Shopee free shipping voucher may appeal to new members, other offers may be more tempting to those using the app for a few years.
You can personalize the customer's experience to their needs by keeping a variety of rewards available. When your audience believes you care about them enough to provide what they want, 83% of customers will likely stick with you in the future.
Another shortcoming of customer loyalty programs is the lack of advertising. How will your customers become involved in a loyalty program they’re unaware of? Promoting your program through all available channels is the best approach to get the most out of it.
While SMS and email marketing are excellent channels, social media and your physical location can be just as great. These marketing tactics can help you increase interaction and ensure your audience knows your program.
The benefits of loyalty programs are limitless and can affect your business in many ways other than an increased number of customers. To maximize and help you boost your business' reach, Rush offers its effective loyalty solution. This easy-to-use loyalty program builder can turn casual customers into your brand advocates.
At Rush, we highly value customer loyalty, which is why we’ve made it easier for you to achieve it. We’ve developed three simple steps to help you out:
Rush also offers other eCommerce services to help you develop an effective e-store for your business. We want to help you become closer to your clients by providing the resources you need to meet them at every point of their journey. Request a demo today.