Do Loyalty Programs Help to Retain Customers?
Customer loyalty programs have been around for quite some time in various forms. One recent study found that 87% of customers agree that, with a customer loyalty program, they are more likely to purchase from the same company again and again.
Loyalty programs are not just beneficial for the customer but they also provide businesses with a lot of data for optimizing their marketing campaigns.
Five Tips For a Successful Customer Loyalty Program
One of the main challenges that businesses face today is the sheer number of choices a consumer has in this digital age.
Customers now have the power to purchase any product from anywhere in the world. If the customer likes the product and gives feedback openly, it is a promotion for the company.
If the customer, however, dislikes the product, they make it known to everyone and the word spreads like wildfire.
Given this importance of customer loyalty programs, here are five tips for implementing successful ones:
1. Target Customers
The most successful customer loyalty programs are those that are targeted at specific segments of customers, as opposed to a generic loyalty program. By focusing the program to tailor to specific segment wants and needs, you wind up with customers that feel special. This helps to build strong relationships with your brand.
2. Offer Unique Rewards
Loyalty programs with unique rewards work very well to retain existing customers, as well as attract new ones. The reward may be some kind of gift or a discount program, but digital rewards are becoming the most effective option. Digital rewards are more popular in online customer loyalty programs.
3. Give Customers Rewards Without Spending
Many loyalty programs are always targeted at customers after they purchase something, and this should not always be the case. If you offer your customers rewards without them having to spend every single time, you are more likely to see an increase in future spending from those people.
For example, offering referral programs, such as free gift cards if a customer refers five people, will work better to increase customer loyalty. This way, you’re having your happy customers do the promotional work for you in exchange for something they want — all without requiring them to spend.
4. Stay Connected With Your Loyal Customers
Regular and open communication with your loyal customers is extremely important. This can be done through emails or instant messaging. For example, when your company is offering a discount, the regular customers will be notified through emails so that they may get the benefit. You can also tailor the content to meet the needs of your customers, and use data you’ve collected from your loyalty programs to offer them tailored offerings.
5. Collaborate With Other Companies
This is another great idea for a successful customer loyalty program. Brands that compliment one another can work together to offer benefits to their loyal customers in unison, and offer them something truly unique through their strategic partnerships.
If you’re going to invest in creating a customer loyalty program that actually works, it’s important you do it the right way. Here at Online Rewards, we’ve got you covered. Contact us today and see how we can help create and implement a customer loyalty program that will grow your business.
