Love On Your Customers with a Loyalty Program
Updated: Feb 19
Loyalty programs work and are efficient in sustaining relationships with customers. It’s cheaper to retain old customers than to find new ones and by using loyalty programs you motivate your customers to keep coming back to you. Statistically, a 5% increase of customers retained can equal 25% in increased profits and it was calculated that 75% of customers tried new brands in 2020 which means 75% of your customers could be buying from someone else if you don’t treat them right.
Why A Loyalty Program
Loyalty programs make customers feel recognized, good and appreciated. It also gets them through those tough times when they may not be able to afford your product or service until they can again.
Getting Started with a Loyalty Program
So, where do you start? There are 4 types of loyalty programs
1.) Tiered Programs - benefits are separated into different tiers. With each tier, members receive more exclusive benefits. (i.e. Gold level, platinum level)
Purpose - customers feel highly appreciated and eager to become brand ambassadors.
2.) Points-based Program - (Most common) Members earn loyalty points on their accounts and redeem them for rewards like free gifts or cash off
Purpose - customers feel highly appreciated and eager to become brand ambassadors
3.) Cashback Program -Earn while you spend and discount available for future transactions
Purpose - customer has a motive to keep coming back
4.) Subscription-based Program - Paid membership for benefits (i.e.. BJ's, Sam's Club,
Purpose - feeling of exclusivity
To get started with a loyalty program you can beginning by offering really easy to implement benefit offers such as:
1.) Saving on a regularly priced item
2.) Promo codes
3.) Early access deals
a.) Access to an item early
b.) re-sales just for them with a branded name
4. ) VIP Treatment (HBD acknowledgements, anniversary deals…)
5.) Periodic gifts with purchase or periodic gifts on birthdays for free
Loyalty programs are a common practice in business, shoot it's more likely than not, that you are enrolled in at least one loyalty program at your favorite store. If it worked for you it can work for your customers too, make sure you give loyalty programs a shot in your business.
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