Many people associate the quality of loyalty with their families, close friends, even their dogs. Loyalty plays a part in most of our daily activities. The brand of toothpaste most of us use each morning probably is one we have used for years, as maybe our coffee, soap and cleaning solutions. We generally order from the same pizza delivery service, visit a dry cleaner whose face we know and whose reputation we trust.
As a result, when you looked up the word āloyaltyā in the dictionary, itās not surprising that the definition of loyalty is faithfulness; advocacy, devotion; constancy.
Loyalty program marketing is a marketing approach based on strategic management, in which a company focuses on growing and retaining existing customers through incentives. They are marketing efforts designed to entice customers to make purchases again and again from a specific company.
Customer loyalty is something that all companies should aspire to simply by virtue of their existence: The point of starting a for-profit company is to attract and keep happy customers who buy your products to drive revenue. Loyal customers convert and spend more with brands they’re devoted to more often, and they tell their friends and colleagues about those brands, which helps drive free referrals.
There’s a lot of data to support the value of cultivating customer loyalty:
The short answer is yes; loyalty program marketing increase sales. However, itās not as simple as creating a loyalty program for your brand and watching your profits soar through the roof. A loyalty program needs to be well-designed and implemented to have a highly positive impact on sales.
Itās not about creating a loyalty program ā itās about creating an emotional connection between your brand and your customers, and loyalty programs are the best way to do this. Increasing customer retention helps boost profits simply because loyal customers already trust your brand and are likely to spend more.
Besides increasing the sales, here are some benefits of the loyalty program marketing:
While creating and implementing a loyalty program is an investment, customer retention strategies are often less expensive than attracting new customers. Acquiring new customers can be 25% more expensive than retaining current customers.
Most modern consumers prefer a personalised experience, with more than half of Millennials reporting personalisation as a high priority. By encouraging your customers to fill out profiles as part of your loyalty program marketing, you can get the data to personalise the customer experience, create targeted marketing campaigns, and increase your bond with customers.
A comprehensive, personalised loyalty program will make your customers feel like they have an emotional connection with your brand and will increase customer patience in case of mishaps. You can increase appreciation by incorporating āsurprise and delightā points or rewards for special occasions such as a customerās birthday.
A good reward program can attract new customers in several ways. First, if you offer points or discounts for a signup, you will automatically be able to add new customers to your mailing list simply because customers want to take advantage of discounts. Meanwhile, if customers see a good loyalty program where rewards are within reach, they are more likely to try your brand simply because the rewards are easily accessible.
By creating a comprehensive loyalty program that allows for modern marketing techniques, you can turn your customers into advocates for your brand. Since modern consumers trust peers over advertising, fostering loyal customers who will then speak out on your behalf is simply a smart business move. Give it a try, and good luck!
Are you interested in launching a loyalty program marketing? Here are the top 5 customers loyalty and reward programs in Singapore which can help you with it!