The business industry has always been competitive, which is now truer than ever. Each day, new businesses are being launched. Most new companies sell similar products and fight for the same market segment.
Due to the easy access to information, consumers have many choices to pick from. Every business should strive to understand and leverage customer behavior as it is critical for success. A good loyalty program can prompt healthy customer behavior and give your business the edge it needs.
A loyalty program is a vital marketing tool designed to encourage repeat business by offering discounts, rewards, and other incentives. Companies sponsor loyalty programs to attract new customers, retain existing customers, and encourage them to continue shopping with them or using their services.
A well-designed and well-executed loyalty program can turn curious potential customers into quality leads that you can convert into loyal customers. Offering a loyalty program creates customer retention. Customers enrolled in loyalty programs are 62% more likely to spend more on your brand and 59% more likely to choose your company over the competition.
Here are some customer behaviors and actions that a good loyalty program can prompt:
Loyalty programs make enrolled customers more engaged and more likely to visit your websites to see what products are available to them through your rewards system. It also allows potential clients to visit your website to learn more about your loyalty program.
The higher the number of visits to your website, the higher the number of quality leads you can generate for new products and services. You can convert these leads to new customers and increase sales. By giving your customers an option to redeem their websites, you increase the number of visits to your site. Why is increased web traffic important for your business?
Website traffic is crucial for business success. The higher the traffic on your site, the more leads you will generate. The number of your website visits translates to the number of opportunities your brand has at:
More website visits don't just translate to more money for your business. Building relationships and trust with your site visitors can ultimately sell your product or service, acquire new customers and grow your brand.
Loyalty programs increase consumer visitations and positively impact consumer spending. According to Mercator, up to 60% of consumers report that being a member of a loyalty program increased the number of times they visited that brand's stores. By starting a loyalty program, you can boost visitations by up to 60%. This will often translate to increased sales as visitations are highly correlated. As you receive more visits, sales will also tend to grow.
Loyalty programs can increase your sales and revenue. A loyalty program breeds customer loyalty that translates to repeat customers who are likely to spend more on each transaction. According to research, there's a 60-70% probability of selling to existing consumers compared to a significantly lower figure of 5-20% probability of selling a product to new customers.
Pareto's Principle perfectly illustrates this scenario: 80% of your sales will come from 20% of your customers. These are your loyal customers that are more likely to repurchase, refer your brand, and try new products and services that you are offering.
Businesses send marketing emails that the recipients mostly ignore. Still, those who open them do not take action intended by the sender. A loyalty program is an excellent marketing strategy to incentivize potential and existing customers to open messages and engage with your brand. Customers enrolled in your loyalty are more likely to open your email marketing messages.
More opened messages can translate to generating qualified leads and a higher conversion rate, which will ultimately translate to a higher ROI. You can also include other products and services that are not included in your loyalty program in the emails or messages and acquire new customers for those products.
Customer engagement enables brands to connect with their audience and build a sustainable brand. Businesses that do not prioritize customer engagement struggle to create a solid brand image. A loyalty program is an excellent and effective way to increase customer engagement with your brand.
You can increase the recall value of your brand and create a reliable brand image. Consumers enrolled in your rewards program are more likely to open your emails and be receptive to your marketing content. A loyalty program incentivizes customers to engage with you and strengthens the bond between your brand and customers.
Clients who are satisfied and happy with your brand are likely to share their experience using your brand with their friends and family. Loyalty programs reward customers by improving their satisfaction and brand loyalty. Happy customers can turn into brand advocates who can influence their community of family and friends.
Using traditional channels can be expensive and might not give value for money compared to word-of-mouth advertising. It's one of the most cost-effective forms of advertising. Customers who are satisfied with the benefits of a loyalty program are more likely to tell their friends about it. The numbers support this; 73% of consumers are likely to become brand advocates and recommend a company that has a good loyalty program.
Brand advocates can help with brand penetration through word of mouth, social media, or referrals. Furthermore, brand advocates can influence new customers and create new acquisitions. A good loyalty program offers excellent rewards and helps promote brand advocacy. Brand advocates aid in widening the customer base of your brand. Keeping your customers rewarded when they refer their friends or relatives to your brand can lower your costs and boost your profits.
A good and effective loyalty program can help you get the results you desire. Glow Loyalty can help you create an effective loyalty program. Our experts have crafted and launched loyalty programs for many brands. We will help you from initial strategic planning to development and overall program management right from the start. Contact us!
Increase Shopify Customer Retention by Focusing on LTV Over Lead Conversion Imagine you are at a store looking for something to buy. You've been ther...