WHAT IS A LOYALTY PROGRAM AND WHY YOU NEED ONE
Loyalty programs are on the rise. Companies utilizing rewards programs are at the top of their game.
But – what is a loyalty program? While most are different, many things are similar. A loyalty program is a way to deliver a superior customer experience to your most loyal fans. I’m sure you know how it works – give something to customers for doing things, they can spend that something down the road.
Like all other marketing efforts, an awesome loyalty program takes work. If you have not yet implemented a loyalty program in your marketing strategy, or are unsure about its efficacy, consider the following five reasons why a loyalty program may be a worthwhile option for you.
1. Boost Your Rep
Loyalty programs serve a dual function: to incentivize new clients to stick around after purchasing your goods and services, and to ensure that existing loyal clients still feel as if they are valued by your operation.
2. Loyalty Programs Are Inexpensive
It’s funny to me when I hear prospective clients talk about how expensive a loyalty program is, it routinely ends up being less than 5% of their overall marketing budget. Isn’t that an acceptable price for unlimited communication with your current and most loyal fans? .
3. Loyalty programs grow companies
Consider the top companies in a wide variety of industries – Hertz, Delta, Starbucks, even Coca-Cola all have a loyalty program that offers their customers rewards for doing business with them. The best of the best use loyalty programs to boost growth; and for good reason – keeping a current customer costs 7 times less than acquiring a new one.
4. Once It Gets Started, It Stops Being Work
A good loyalty program is automatic. It’s seamless. It doesn’t require additional personnel – although you may want to have someone overseeing it; but it’s not necessary. You should be able to ‘kick back’ and enjoy the profits.
5. It Makes Your Customers Happy
In a recent study by Bane and Co, it found that 80% of companies believe that they are delivering a superior customer experience, while only 8% of their customers agree. That’s a startling statistic – the question I always ask with it is this: do you believe you’re delivering a SUPERIOR customer experience? Because you’re probably not.
Why It Is Time For You To Set Up A Loyalty Program
It’s no secret anymore that loyalty programs are effective marketing tools. They increase growth, help retain customers, and improve your brand’s reputation. And if you haven’t yet weaved a loyalty program into your marketing strategy, you may be missing out on one of the best and easiest tools available for the success of your business.