Customer loyalty programs are a great way to incentivize repeat business and increase customer lifetime value. Studies have shown that only a small percent of customers account for a large amount of revenue, so it is important to do whatever you can to retain these valuable customers.
What are customer loyalty programs?
Customer loyalty programs incentivize customers for their continued business by rewarding them with points or prizes. Customers earn these rewards through purchases made at the store and can either use this toward future purchases or trade it in for cash.
What are the benefits of customer loyalty programs?
Here is a list of few great benefits to having a customer loyalty program:
- Increased revenue
Studies have shown that just one percent of customers account for 30%-50% of revenue, so keeping these valuable customers happy is important. These programs are designed to increase customer retention and lifetime value by building strong relationships with returning loyal patrons.
- Improved customer experience
If customers are happy with their shopping experience, they’re more likely to return.
- A) Customer loyalty programs reward returning customers for their continued patronage and allow them to feel appreciated!
- B) These programs also help you learn more about your customers’ preferences to better tailor your store’s services towards them in the future.
- More visits
Customers that have a positive experience at your store are going to want to come back. Customers can choose from various rewards, so whatever it is they may be looking for, you’ll likely have something available in the program catalog. For example, it provides an incentive for more frequent shopping trips.
It is especially helpful when customers know that you appreciate what they do for your company – word-of-mouth marketing can be highly beneficial if you choose to reward current customers who refer new ones.
- Higher spending
On average, a loyal customer will spend more money than a non-loyal one.
Customers who return often seek out exclusive deals from companies through newsletters, emails, direct mailers, etc. Incentivizing this behavior encourages them to keep coming back because you’re able to show appreciation for their patronage. The Loyalty programs Singapore provide a great way to keep your customers happy and coming back.
The Loyalty programs for customers can turn out to be a great way to develop a sense of belongingness in customers with the business. If they have earned points or rewards through loyalty programs, it gives them something for their efforts.