Loyalty programs have emerged as one of the most effective strategies in the market toolkit of retailers. They help enhance revenue and encourage the loyalty of the customers. In this article, are details How to Choose Customer Loyalty Programmes That Yield Actual Results?
Research suggests that almost 85% of the customers are seen to prefer brands that offer loyalty programs.
Providers like power2motivate.co.uk say that over 65% of the customers’ spending habits change based on their ability to earn rewards.
What is Customer Loyalty?
Customer loyalty is the willingness of the customers to return to a company or brand to conduct business. This is primarily due to the satisfying and delightful experience they had with the brand.
One of the primary reasons for promoting customer loyalty is that those customers can induce your business’s growth. The process takes much less time than your other marketing efforts and sales.
Now you may be wondering how to select the best loyalty program that will benefit your business truly. Here is a guide.
- Store Credits and Cash Back
The store credits and cash back are the most popular rewards on the list. Loyalty programs treat these programs as almost identical. Customers who participate in the reward programs receive cash back for every dollar spent. They can use that on future purchases as well. One example is “Earn $20 for every $100 Spent”.
- Free Products
Free products happen to be the most attractive of all the loyalty programs available today. Apart from the food and beauty industries, these are also highly preferred in those fields where more frequent and smaller purchases are the norm. Free stuff is one thing that is loved by all.
Many loyalty programs present a choice to the customers to get free products as their rewards. For example, in one particular app, the customers earn points for buying food of their choice while using the app. They can redeem these points for free items from their menu, ranging from fries and strips to salads.
- Point Programs
The point programs are the same today as they were in the early 1700s. The customers have to spend upfront for rewards that they earn later. But today’s customers are much smarter, and their choices are uncountable (literally). Still, they have their place.
While these programs can make people opt-in, they may not enhance spending levels or increase engagement. So, these programs are more about acquisition. You can make the most of this program when you pair it with premium loyalty tiers.
Discounts are another one of the most successful loyalty program strategies for businesses. Providing discounts on your services and products can make your customers keep returning to your business. However, limit your public variable to discount and save the best ones to those members subscribing to your program.
Also, send personalized discount coupons for the product categories or products that each customer tends to buy the most. Your customers will love this customized approach, especially when you interact with them on a personal level.
These are some of the loyalty programs that most business verticals have embraced. You can incorporate them into your marketing plan and ensure desired results. Apart from these, you can also take the help of online sites to formulate the loyalty program, yielding the best results for your business.