Building and maintaining customer loyalty is one of the most critical and challenging aspects of growing your business. According to PwC’s Future of CX report, over 30% of consumers will leave a brand after a negative experience, and over 90% will leave after two or more. That’s why you must invest in a customer loyalty program that will help you stand out from the competition, satisfy your customers, boost engagement, and increase your profits. Today we’re reviewing the benefits of a customer loyalty program and how you can create one that helps build a following of faithful customers.
Benefits of Customer Loyalty Programs
A customer loyalty or rewards program is a marketing strategy designed to encourage or motivate customers to shop or use your products or services using discounts or incentives. No matter what industry you’re in, you should consider creating a rewards program for your business. Below are several benefits of building a successful customer loyalty program.
Better customer retention
A rewards program almost always guarantees repeat purchases. When you form a successful loyalty program, you incentivize your best customers to visit and buy from you more often, creating retention. Even a tiny spike in customer retention can boost your bottom line. A study by Bain & Company found a 5% increase in customer retention could potentially increase profits anywhere from 25% to 95%! After a customer makes a purchase, the likelihood of repeat sales grows significantly.
More referrals
If you create a thriving rewards program, your current customers will refer your business to their friends and family. Devoted customers help acquire new customers and can generate more than twice the sales of paid advertising. Another thing to consider – customers referred by loyalty members have a 26% higher retention rate!
Authentic reviews and user-generated content
Did you know that over 85% of potential customers trust online reviews more than what you say about your product or service? Your loyalty program can help encourage customers to leave reviews or ratings, painting a positive picture of your business to new customers.
So now that you understand the value, how do you create a loyalty program for your business? We’re sharing some helpful tips below.
How to Create a Loyalty Program
Your loyalty program should reflect the needs of you and your customers. Before diving into the process, you should have a clear understanding of what you’re hoping to achieve from it, as well as how it can benefit your customers. Targeting your objective is key to creating a lucrative rewards program.
Keep it simple.
From the name of your loyalty program to the branding, don’t overcomplicate things. Ensure enrollment is simple, convenient, and easy to understand; rewards and incentives should also be straightforward.
Offer enticing rewards.
Ensure the rewards you provide make sense for your business while simultaneously offering your devoted customers something they need or want. Another way to make it worth their while is offering rewards beyond just purchases, such as leaving a review, downloading your app, or subscribing to your newsletter.
Stay connected with your customers.
After creating your loyalty program, remember to engage with your customers outside of it. Studies show that the average American is a member of at least seven loyalty programs, but over 25% of them never redeem their points or rewards. One of the best ways to ensure your customers are getting the most from your program is to send regular emails. Sending an email or text with information about exclusive deals or how many points they have accumulated can encourage them to continue shopping with you.
Get ready to turn your customers into loyal fans when you join Simpay’s platform. With a combination of a successful loyalty program, digital marketing solutions, gift cards, and more, you have all the tools you need to grow your business. If you’re ready to enjoy the simplicity and efficiency of Simpay, contact us today at 866-253-2227.
