Loyalty programs are defined as a special, rewards-based marketing system which are usually adopted by various commercial entities, such as companies and restaurants, in order to win their customers’ loyalty and ensure repeat purchase experiences in the long term. These rewards can include incentives, personalized discounts, vouchers, free merchandise and the like. In addition, loyalty programs represent a great opportunity to collect customer information that can be used later to launch more efficiently targeted campaigns. Let’s take a closer at some of the benefits of loyalty programs.
1-Increasing Your Revenue
Loyalty programs contribute greatly to increasing the revenue of your store because they ensure the continuity of purchase by customers as a main method towards achieving growth of the store. The probability of selling to an existing customer is 14 times higher than selling to a new one, and this can guarantee at least a minimum level of sales. Your most loyal customers are very likely to promote your products and services at no cost through their social networks and to their friends, which also helps you gain new customers. Moreover, retaining customers through a loyalty program increases their lifetime value.
2- Connection to Your brand
Loyalty programs are made for your best, recurring customers who often generate 80% of the store’s total profits, the result of well-designed programs is a strong relationship with your brand. The more customers interact with your brand, the more likely they are to promote it to others. And, loyal customers are about two to three times more effective in convincing others to buy from you.
3- Building an Online Reputation
The process of attracting new customers is extremely costly and exceeds the cost of retaining existing ones. As a result, loyalty programs can be used as a tool to strengthen the relationship between existing customers and your store. And given that 88% of customers trust the reviews and comments that other customers leave online, loyalty programs should assign special rewards to encourage customers to leave reviews.
4- Enhancing the Customer Experience
Poor customer experience with a certain store affects customer trust in it and decreases the likelihood of future purchase from the same store. According to Forbes, 79% of customers will not repeat a purchase experience from a store if it was a bad one and will go to a competitor instead. Hence, the idea of loyalty programs is to provide the best possible experience for your customers to feel appreciated and want to come back to your store again and again.
5- Building Your Customer Database
The main purpose of loyalty programs is to reward customers for their loyalty to the brand. These programs also provide a starting point for your customer database using the information shared by customers in order to benefit from the rewards. For example, in Foodics customer data has been merged so that the store can know the customer’s personal data, their favorite product, their favorite branch, and total spent by them. This data aggregation will allow you to create campaigns targeting individual customers or even a special segment of them.
You can wait for the perfect moment when your customer feels positive about your brand to ask them to leave a comment or review on your service to help you build a positive online reputation for your store and brand. Alternatively, you can immediately start using loyalty programs as a proven method that many customers have already expressed increase their trust in the store even during difficult economic times. Moreover, a recent survey by KPMG showed that half of the loyalty program customers are willing to do anything to get more rewards in at least one program.
So, what are you waiting for? Benefit from Foodics’ loyalty program today!