No amount of money can buy customer loyalty. If a company’s product or service is good and trustworthy, customers will inevitably come back to support that brand. However, no matter how good a product or service may be, businesses still need to come up with effective customer loyalty strategies to build customers’ trust, improve customer interaction, increase engagement, and actively retain them after their first purchase. Today we look at reasons why a loyalty program is an effective strategy in retaining existing customers and gaining new ones.
Customer loyalty is not a costly investment
Business owners may think that loyalty programs are just an unnecessary expense that will only deplete their existing resources. The truth of the matter is that developing a good customer loyalty scheme is not a costly investment as compared to pursuing new customers. It is said that retaining an existing customer is seven times less expensive than acquiring a new buyer. It all comes down to creating a realistic and attainable rewards program. The expense that you will incur by creating a good rewards program may reap into more benefits when it successfully generates additional business opportunities.
It adds value to market research
A loyalty program can be one of the ways that can help businesses gather valuable data for their market research. Market research is important because it allows you to create a more personalised experience for their customers. By encouraging customers to fill out profiles in your loyalty program, you can get the data you need to better serve them. From targeted marketing campaigns to personalised rewards, you add more ways to engage with the patrons of your brand.
It helps businesses’ increase their sales
Through the help of market research, you can easily improve and personalise the consumer shopping experience through having the ability to make better suggestions that meet their specific needs. This, in turn, increases the likelihood of customers purchasing a suggested product.
It makes customers feel happy and appreciated
There’s a good reason why you would also want to give back and make your customers happy. One of the reasons is it increases customer retention. When customers appreciate the incentives they receive for a particular purchase or service, the more likely will they be enticed to make another purchase especially when what you offer is in tune with their wants and needs.
In addition, making them feel appreciated helps lengthen customer patience in case of problems. When customers have an emotional connection with your brand, your customers will not be easily “turned off” when they encounter an issue or accident. There’s room for problem-solving because they trust your brand. Ultimately, when you have learned how to show your appreciation to your customers—even if it is as simple as giving them points on their birthday—it can turn your business around in ways you didn’t expect.
It solidifies credibility and reputation
Through a good loyalty program, you do not only improve customer appreciation, but you also increase the chances of these happy, existing clients to share their positive experience with those around them. A highly contented customer is more likely to support your company and recommended it to others. And if you’re successful in forming a reputable name for your company through word-of-mouth referrals, you will continue to achieve growth for your business.
Create a good loyalty program today
Implementing a comprehensive loyalty program as one of your marketing tools is a smart move for your business. It can help you tap new customers, improve your brand’s reputation and turn your customers into loyal supporters of your brand. At Bartercard, we understand that our members are the most ideal candidates to promote our products and services. That’s why Bartercard’s customer loyalty program – bRewards allows our patrons to reap the benefits of growing the Bartercard community. Want to know more? Contact us today and learn how you can become a Bartercard member!