Loyalty Programs: A Win-Win for Businesses and Customers?
Thursday October 8, 2015
It seems that everywhere you turn, businesses are offering you opportunities to join their loyalty programs. As we know from personal experience, the benefits of joining these programs often outweigh the negatives.
Loyalty programs provide two key functions: They give a customer rewards for brand loyalty and provide the issuing company with a wealth of consumer information. Therefore, the right loyalty program can play an essential role in taking your organisation to the next level.
Here are our top 5 benefits of a loyalty program:
1. Influence Your Buyers Emotions
Emotional loyalty is different, and it can be what separates outstanding rewards programs from others. You must connect with your consumer and make your customer feel good about their purchase.
A loyalty program gives you a way to surprise and delight customers by rewarding them for something that previously went unnoticed.
The Go Loyalty program goes beyond just offering a discount, your customers will be able to track and redeem against an endless number of ‘money can’t buy’ rewards, through redemptions, auctions or lotteries.
2. Retain Your Existing Customers
Retaining customers is less expensive than gaining new ones, so any way you can keep the customers you have happy and engaged, the better. Loyalty programs are a great way to do both – you reward customers for certain actions, and encourage them to continue those actions, whether through a purchase, referring a friend, or something else.
If you successfully market your loyalty reward program, your customers could become your biggest brand advocates.
3. Acquire New Customers
A loyalty program should attract new visitors and customers; how effectively will depend on how exciting and how valuable the rewards seem to be to the target audience.
However, this should not be the primary motive of implementing a loyalty scheme; there are cheaper and more effective ways of acquiring customers. But, it is generally far more profitable to retain and up-sell existing customers than to attract new ones.
4. Increase Customer Lifetime Value
Customer Lifetime Value (CLV or CLTV) is a measure of customer profitability over time. A loyalty program can help calculate exactly what the CLV is for each supporter, and help you wield those statistics into usable data for implementing solid strategies to retain your customer base. For instance, a loyalty program can provide you with information about a customers’ buying habits.
We talked earlier about the emotional influence behind a purchase, so data is vital. Put simply, this will allow you to monitor the steps your customers are taking before they purchase, allowing you to reward them at each step of the buying experience so that you can increase your customers lifetime value.
5. Build Supporter Relationships
Building relationships is crucial, but not always as straight-forward as it might seem. You need to show your customers you truly value them.
In tandem with our CRM solution, our loyalty and rewards program will help you improve your customer relationships through greater insight and a better customer experience. If you successfully identify and treat customers as individuals, you will be able to provide a unique level of service, which will stop your customers feeling invisible and start feeling valued.
Wrapping it up
Loyalty programs yield the following benefits:
- Keep customers/reward customers
- Prompt additional purchases
- Differentiate services for loyal customers
- Cross-selling and promotion opportunities
- Maximise customer relationships
- Attracts new customers
If you would like find out more information about Green 4’s Go Loyalty program, click here.