Customer loyalty is a value that all success-driven businesses strive for. A good customer base will likely keep your business afloat in the good times and the bad. As a result, all business owners need to consider implementing a loyalty program of some sort, geared to rewarding regular consumers for supporting you.
Customer loyalty should be easy. And, by combining the ability for customers to pay for goods and reap the rewards via the same marketing channel – their mobile device – it really is easy. A good rewards program is sure to improve your customer engagement on multiple levels.
There are six primary reasons why your business should have a loyalty program:
1. Acquire and enrich customer data
A loyalty program has the potential to grow your business in many ways. One way is by acquiring new customer data and enriching the current market data that you have.
Consumer data enrichment helps to understand your customer better; to learn more about their trends and buying habits. The more you know about them, the easier it is to make every customer interaction valuable.
Most consumers prefer a personalised experience, so enhancing the customer experience and meeting their direct ‘wants and desires’ is a sure-fire way of increasing customer acquisitions and retaining your client base.
2. Increase in sales
Customers are always looking for a good deal. Why would they pay more for a deal, if they can conveniently pay less or receive perks for buying the same product or service elsewhere? Statistics show that over 70% of men and women are more likely to shop at a business that offers a loyalty rewards program. As a result, loyalty programs are the perfect tool to drive increased sales and revenues for a business.
3. Improve brand awareness
Brand awareness is one of the keys to driving a customer’s purchasing decisions. Markets are overcrowded and extremely competitive, so customers are likely to stick with the brand they know.
Previous and current market instability has made the price a big factor when shopping, which has created a gap in the market for those businesses that give back to their customers, allowing them to stand out more amidst the crowd.
Customers talk and businesses should never underestimate the power of referrals. If a consumer is receiving a great cashback or discount from your loyalty program, there is a good chance that they will share that information with their friends and family, automatically increasing brand awareness.
4. Promote customer retention and create stickiness
When customers are rewarded for purchasing your goods and services, it helps them build an emotional connection with your brand. This ensures that your brand comes under consideration the next time they are looking for such a product or service. The better the rewards offered to your clients the higher the chance of customer retention.
Sticky customers are the bread and butter of any business.
According to research, if a business manages to increase its customer retention levels by just 5%, they can boost their revenues by between 25% to 95%. Certainly, the type of growth worth striving for.
5. Recognise and reward customer behaviour
Loyalty programs are one of the best ways to reward loyal customers. It shows real customer value and proves that you appreciate the efforts of those supporting your business. Customers want to feel appreciated for their behaviour, and nothing speaks appreciation more than ‘bucks’ back in the bank.
While instore promotions go a long way to driving sales, these are generally seasonal or passing. Loyalty rewards are constant – something your customers know they can count on each time they do business with you.
6. Build a customer-centric approach to business
Loyalty Rewards are customer focused and present the doorway for your business to become more customer-centric. This attitude towards business ensures that the customer experience offered by your company is always satisfying, as it focuses on their needs first.
The old adage of “the customer comes first” must be lived out naturally in the way the business conducts itself and not only when clients have a complaint. A customer-centric approach is proactive, which helps build their trust in your brand. A solid reputation is akin to success. This is something that a great loyalty program can help you achieve.
How UBU can help you
If you’re interested in building brand loyalty and would like to find out more about how UBU can attract new customers for your business and reward them for their loyalty, read more here and join us!