5 Reasons Why You Should Have a Customer Loyalty Program
By Yavini Lucille · 6th March, 2022
Are you aware that it costs five times more to acquire new customers than to retain current ones? But far too often, businesses focus on securing new customers rather than retaining their existing ones.
There's no doubt that you want to grow your customer base. But how do you retain the customers who are more likely to buy from you again? One suggestion is to set up a customer loyalty program that rewards returning customers.
What is customer loyalty program? In short, it is a program offering customer loyalty benefits is a great way to thank customers, as a business. It's good for your customers, but what exactly are some of the benefits of a loyalty program to you?
1. Bring back existing customers
Don't lose sight of your existing customers!
Give them loyalty points if they return to your store to make a purchase. And with each purchase, you should give them more loyalty points. By doing this, you can expect your customers to frequent your store often. This makes them more likely to spend time there.
2. Retaining customers is less expensive than acquiring them
It's a mistake for businesses to think that retaining customers is the same cost as acquiring new customers. In fact, acquiring new clients is much more expensive than retaining existing ones.
Some of us might believe it would only make sense to spend marketing budgets on existing customers and use these funds to acquire new prospects BUT this is not the case. It costs 7 times more to acquire a new customer than to keep an existing one.
How to make customer come back? Here’s the six actionable ways to earn customer loyalty for your business.
3. Establish your reputation
Brand loyalty programs help you build a positive image of your company. Consumers feel valued through loyalty programs. Having a loyalty program attracts customers and builds good reviews for your business.
Providing rewards for your customers will also help you attract new ones. Customers who earn loyalty points are bound to share their joy with their close ones and encourage them to buy your brand in the future.The word of mouth marketing can be more effective than any other advertising medium.
4. Boost more sales
How loyalty program important to your business? Let’s take an example, give your "loyal" customers 38% off only on 3.8 International Women's Day. However, how do we define “loyal” customers?
Well, figures able to do it automatically for you. With EasyStore’s loyalty program, you can fully access to the information of your customers, including their every purchase history in your store.
Based on all the stats we provide, you can develop solid strategies to retain all clients. It could be something simple such as credit some loyalty points on the store accounts of your active, or even inactive customers. Definitely they will be surprised and most properly will trigger impulse buying to your business.
Consider offering your customers the possibility of using the credits to make a purchase. Providing an urgency to make a purchase will help you to scale your business.
5. Develop brand advocates
Most valuable customers are not just those who spend money with you. Instead, they're the ones who generate it. They are known as "brand advocates". They are the ones who will recommend your store to their friends, family or - if they are on social media - to their followers.
Research shows that at least 92% of people trust word-of-mouth (WOM) recommendations from friends and family compared to any other form of marketing.For example, if a customer refers a friend or relative to your brand, you can award one with points, and the other could earn a discount off their first purchase. This is a win-win situation since it brings in new customers and maintains loyalty to your brand.
You can create and manage your advocates or "referrals" in EasyStore too! Check out referral marketing here.
Create your loyalty program now
Establishing a loyalty program is a great idea if you want to increase sales as well as retain customers. It is cost-effective, builds brand awareness, and enhances customer loyalty.
It is clear from the above that adopting a loyalty program is a great way for your business to recognize and retain your customers. Furthermore, it increases referrals, positive feedback, and increases your customer satisfaction levels.
Want to know how to make customer come back? Here’s the six actionable ways to earn customer loyalty for your business.
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