We’ve previously discussed some of the benefits of loyalty rewards systems in the first part of this series, in addition to defining what a loyalty rewards system is. It is often said that retaining existing customers is an easier task than winning over new ones. While both have their challenges, there are many advantages to implementing loyalty rewards programs in your business, some of which are as follows:
- Boosting sales thanks to tempting rewards
- Improving your reputation
- Loyalty programs are more affordable than you know
- They have been proven to speed up growth
Boosting Sales Thanks To Tempting Rewards
Not all loyalty rewards programs are the same; it is important to know that only the ones that are skillfully executed will yield the desired effect. The reason business owners and marketers enjoy using loyalty programs is because they can help retain customers. On the other side of the equation, customers are fond of loyalty programs because they offer added incentives for making a purchase.
The rewards that come with more frequent purchases often increase linearly, and sometimes even exponentially. Your business is always top of mind for your customers as a result of providing an enticing loyalty rewards program.
Improving Your Reputation
A very important part of loyalty programs is that they also increase the chances that the clients that are already loyal to your company will recommend it to others. This happens because loyalty programs serve the purpose of making customers feel appreciated. As your existing customers tell their friends and acquaintances about your products and services, this will continue in a cyclical nature and will ultimately lead to driving more growth for your business.
Loyalty Programs Are More Affordable Than You Know
There is no need to imagine a large portion of your existing resources being funneled away into a loyalty rewards program that might end up not living up to its expectations. According to an article published by Forbes in 2013, keeping an existing customer is 7 times less expensive than acquiring new ones. In other words, finding new buyers is much more costly than investing in a loyalty rewards program, which makes such a program a no-brainer.
They Have Been Proven To Speed Up Growth
Different loyalty rewards programs will undoubtedly bring very different results. Every marketer should be aware of the fact that loyalty programs have been tested on countless different occasions and across a wide array of different industries. They have brought about immeasurable growth in almost every case, which makes them a surefire way of realizing the same positive results in the future.
