Most businesses today understand the importance of increasing customer loyalty and retaining their existing customers. That is the main reason behind the fact that loyalty programs can be seen in virtually every nook and cranny of the retail space. There are a number of ways to define loyalty programs and they differ from business to business, but they are a marketing system that offers rewards for the purchasing behavior of your customers. For example, if you offer a loyalty card or points card in your store, you can enable customers who accumulate a certain amount of points to use them towards something in your store. Their benefits include:
- Generating a new customer base
- Helping to drive up sales
- Strengthening relationships with existing customers
Generating A New Customer Base
According to research, around 62 percent of customers don’t believe their brands are doing enough to reward them for their loyalty. This increases the chances of these consumers changing their buying habits. The solution would be to make your customers feel like you care by giving them a reason to stay. If you were to take a small portion of what you spend on traditional marketing and advertising media and direct it towards a loyalty program, you would not only get new customers coming in but would also keep your current ones coming back.
Help With Driving Up Sales
Loyalty programs can not only provide incentives for your customers to buy, but also improve customer retention. Having regular customers and giving them incentives that are in tune with what they are looking for means you are also encouraging them to keep coming back. This translates into them continuing to spend money in your store.
Customers tend to only be 12-15 percent loyal to a single retailer but actually represent 55-70 percent of total sales, according to one study. The reason why nurturing these relationships is important is because, basically, half of your sales are coming from a small percentage of your customers. This is where loyalty programs can be very helpful by increasing the number of repeat customers and repeat purchases alike.
Strengthening Relationships With Existing Customers
The widespread belief that loyalty programs are expensive is one of the biggest misconceptions out there. The simple truth is that it can be far more expensive to continuously pursue new customers instead of keeping your existing ones. In fact, keeping an existing customer is seven times less expensive than acquiring a new one, according to Forbes. This is where loyalty programs come in as they’re pretty much designed for the sole purpose of building customer loyalty.
Monetary benefits aren’t the only thing shoppers tend to be attracted by. Recognition is an important piece of the shopper puzzle, which is why it is important to give something more personalized or exclusive to those who own your company’s loyalty card. Include your customers in your community or brand, let them share things on social media, participate in contests or invite their friends. You can also try inviting them to exclusive events that are only a perk of being a member or give them a sneak peek of samples of new products before they’re released.
Thinking About Incorporating A Loyalty Program Into Your Business? Get In Touch With Quickcards
One of the absolute best ways of boosting sales, keeping your existing customers and winning over new ones is to include a loyalty or membership program into your business model. A very simple way to do that is to pass around (or sell) membership cards to your most loyal customers to encourage them to keep coming back. This is where Quickcards comes in as it specializes in manufacturing all kinds of cards for its clients, from gift and business cards to ID badges and membership cards. Get in touch with Quickcards today to ensure you’re on the receiving end of membership and loyalty cards that feature top-notch design, premium quality and a reasonable price.
