An effective and well-designed customer loyalty program can help you to attract new customers. It will also allow your company to retain the existing customer. Apart from that, customer loyalty programs are also capable of enhancing profits and reduce turnover.
More than 60% of adults stated that they prefer brands that offer customer loyalty programs and more than 70% of online users said that customer loyalty programs are one of the most valuable factors of their shopping experience.
Most online companies have said that loyalty members spend more on the services compared to the non-royalty members. Additionally, 50% of online consumers said that loyalty rewards are something that attracts them primarily. Despite the statistics, only 15% of businesses focus on customer retention. Here are the top 3 reasons why a customer loyalty program is necessary for your business.
It Develops Emotional Connection
Loyalty programs enhance sales as well as increase the lifetime value of the customers. Most of the loyalty programs are done through incentives. However, the benefits of a customer loyalty program are greater. The emotional connection that is established with the customer loyalty program is extremely essential.
A loyalty program will help your business to develop emotional commitment through repetitive behaviors. However, make sure your approach is creative. Providing third-party offers can create lifestyle perception as well as the community that will ultimately help the customers to connect with the brand emotionally. Additionally, the impact will be greater if you manage to partner this with customization.
Customer Retention Have Higher ROI, Says Eric Dalius Net worth
Acquiring new customers is sixth times as much as retaining the existing customers. Existing customers have more probability of trying or purchasing new products than new customers. Even though marketing efforts to attract new customers are essential for the growth of your business, retaining the existing customer is also crucial. If you cannot retain the customers, you won’t be able to grow your business.
An effective customer loyalty program can help your company to avoid high rates. Not to mention, it will also help your business to hold onto potential customers. Additionally, the approach is also cost-effective. Building an appropriate and engaging customer reward program means your business needs to spend less money on traditional marketing methods and spend more time on creating a long-lasting and valuable relationship with the customers.
It Helps You to Reach New Customers
Satisfied and loyal customers are one of the best marketing tools for your business. In the era of online reviews and e-commerce websites, a positive word-of-mouth marketing strategy is essential to attract new customers. Eric Dalius Net worth says that more than 80% of customers trust personal recommendations more than other marketing efforts.
With the help of an effective customer loyalty program, you can reward the customers who bring new shoppers to your website. Keep in mind that referred customers are much more profitable and loyal than the customers who visit your business through other types of marketing efforts. Even though customer acquisition is expensive, if you manage to implement a proper loyalty program, you’ll be able to expand your customer base without any problems.
A relevant and effective customer loyalty program is one of the best foundations for a successful customer engagement strategy. Customers enjoy appealing offers and discounts as per their preferences and needs.