Irrespective of the industry you are operating in or the market segment that you’re serving, relying on repeated purchases is a common business phenomenon.
Attracting a customer towards your product or service to make a first-time purchase is not enough.
The real victory lies in making that customer loyal to you and keep coming back to avail your service.
What Do Loyalty Programs Actually Do?
The concept of loyalty programs is to get hold of valuable data pertaining to consumer buying behavior and trends that are dominating the market. This key information helps segment customers into relevant groups and delivers a more personalized user experience.
Consumer awareness help customize your market offering to consumer tastes and preference leading to increased customer engagement.
Taking initiatives to reward your customers certainly benefits your business too. Read on to know what you’ll be getting out of those loyalty programs!
More Communication and Repeat Visits
When you establish clear lines of communication with your customer through personalized offers, it helps gear them towards repeat visits. A thank-you email with a special offer enclosed is an effective form of loyalty program.
Increased Web Traffic to Your Website
Adding sign up options on your website for membership enrollment and reviewing their loyalty points is one way of driving traffic towards your site.
You should aim to increase website frequency by promoting special offers for your loyalty members. Effective call-to-actions drives new customers to signing up for your services, leading to higher sales.
Higher Customer Spending
Products that do not fetch a high demand in the market can be sold effectively my attaching incentives to them to help drive traffic and the spending share.
New prospective customers are attracted to loyalty rewards and can also bring back old customers.
Customer Retention
Undoubtedly, one of the biggest advantages of designing customer loyalty programs is retaining a clientele base that is sure to make repeat purchases. The 80/20 rule fits aptly here as for most businesses 80% of the sales is generated from 20% of the customers.
A business that experiences healthy growth usually places great importance to customer retention. The cost of retaining customers is quite less than the expenses incurred in acquiring new ones.
As a business consultant working in Saudi Arabia I have worked in diverse cross-cultural settings and have learnt from experience that retaining employees is the key to customer loyalty. If you wish to learn more about the right marketing tactics to boost sales, read up on the resources available on my website
