A successful loyalty program increases productivity, profitability and ROI.
Maximizing a customer lifetime value is what will make a business profitable and sustainable for years to come. With a good view of success and failures in the market, it's proved that increasing customer retention rates by as little as 5% can increase your profits by up to 95%!
Most of the shoppers in the market are looking for more than just discounts alone. The best way to retain customers lies in the powerful strategy of loyalty programs. Loyalty programs are used by all leading brands to trigger customers, deepen the relationships and gain valuable insights. If planned right, it can lead to loyal customers who would always rely on the brand for any product or services.
The key to creating a successful loyalty program is emphasizing on generating a meaningful and communicative exchange with customers. This way a customer will feel honored while making them recognized, acknowledged, and of course, rewarded at the same time.
“76% of shoppers see their loyalty program membership as part of their relationship with the brand. But 97% of loyalty programs are based on spending money to earn money.”
Planning and executing a successful loyalty program increases the productivity, profitability and generates a good percentage of return on investment as well. But, a business has to think beyond just rewarding for purchases alone. A loyalty program is far beyond than just rewarding customers for purchases.
An enterprise has to think ahead and surprise customers with additional benefits on most of the factors that promote the growth of business amongst customers. This includes reward or recognition of customers for engagement like comments, reviews and referrals. Such marketing tactics eventually help to generate a higher average order value and repeat business. Profitability is just one of several benefits that a customer loyalty program can attain.
“Econsultancy reports that 82% of companies they surveyed agreed that customer retention costs less to execute than customer acquisition.”
To plan an effective loyalty program campaign, one needs to get through a few questions that will chalk out the necessary answers to the program. An enterprise must think about its current customers and face questions like:
Answering these questions could bring a clear picture of how exactly you should plan the loyalty program and generate maximum RO. It's important to hit the bull’s eye with the campaign.
Let’s talk about a few loyalty insights that would cater to marketing the business as well. Such theories applied to loyalty card brings immense benefits and be more connected with customers.
Working on both retaining and acquiring customers remunerates an enterprise in its own ways. This highly depends on the ability to provide the audience with an effective marketing campaign that is more crucial than ever.
Today, technological advances allow penetrating deep into the market to have a greater understanding of individual customer preferences; thus making it easier for business to come back with a plan that not only benefits the consumers but also the business overall.