Companies are in a constant race to find the “The Perfect Customers” these are the ones who are actively engaged in the companies’ offers and trust their services enough to pursue new offers because they are certain of the quality they will receive.
A customer loyalty program is your way of appreciating these loyal customers by recompensing their persistence and giving them a gateway to make use of special offers, free merchandise, rewards coupons or limited edition products. The Loyalty Report 2017, stated that the average customer engages in at least 7 loyalty programs, and is more likely to hold onto the ones that give them the highest value.
If you are still not sure, here are 5 main reasons you should start a loyalty program for your products TODAY:
- Loyal Customers WILL join a loyalty program if you provide one
Research shows that 52% of loyal customers will join a loyalty program provided by their favorite brand. Even if these programs only offer minor discounts or sale notifications, these incentives will lead to more visits from these customers who are satisfied by the quality of the brand. Loyal customers subsidize the highest revenues of a business since they are actively invested in your company’s updates. So if you are worried about who will join your program, now you know!
- Your top 10% customer base are spending 3x more than any other customer.
Loyal customers who are satisfied by your product and customer service are more likely to come back for further purchase and recommend your products for others. For that reason, it is highly important for businesses to prioritize these customers rather than market their offers to everyone. A CRM system can help you keep track of your customer data and purchasing habits, and assist in identifying the loyalty program that best fits your products.
- Customers who are emotionally connected to a brand have a higher customer lifetime value
Customer Lifetime Value is a key consumer metric that allows companies to measure the revenue they can expect from one customer throughout their business relationship. If customers have memorable and positive experience with your brand, they are more likely to come back and buy again. A loyalty program will make the customers’ experience with your brand more personal and customized which in turn will help you retain those customers to increase lifetime value.
- Customers are willing to pay extra for an enhanced level of membership
Customers are always looking for more value from the product they are purchasing and often times they are willing to pay extra if the value is worth. Reports suggest that 37% of customers are willing to pay extra for an enhanced level of a customer loyalty program. For that reason, it is highly recommended that you create a program with different levels, i.e Bronze, Silver and Gold membership. This presents an opportunity for your customers to engage more with your company allowing you to derive more revenue from those who are already involved in your loyalty program.
- A loyal costumer is more likely to recommend a brand with a good loyalty program
The most tangible outcome of a positive loyalty program is that gives your customers a feeling that they are a part of your community, because they have access to premium offers that others do not usually know about. Lucky for you, customers are more likely to brag about those exclusive offers as well as the membership status if it offers more advantages. Actually, 70% of customers would often recommend a brand if it has an exciting rewarding program, thus, your program is yet another opportunity to attract more customers.
The bottom line is adopting a loyalty program is a boundless way for your business to recognize and retain your customers. Moreover, it increases referrals, positive feedback and elevates your customer satisfaction levels. What are you waiting for?!
Call PointCheckout today to find our how we can elevate your existing loyalty program through adding redemption options or building a new loyalty program that talks to the new generation of consumers.