What is a loyalty program?
A loyalty program is an effective way to engage your existing customers, acquire new ones and increase your brand awareness online and offline.
In times past, loyalty programs involved companies offering rewards to customers with the most frequent purchases, or who spent the highest amount of money in a given period.
While this proved effective then, that model of rewarding loyalty does not work anymore - at least not on its own.
What do loyalty programs look like today?
Today, a successful loyalty program is one that is not solely based on how much a customer spends on your products, but is fun, innovative and tailored to your customers’ wants and daily experiences.
Before you learn how to create an effective customer loyalty program, here are 3 things a loyalty program can do for your business:
1. It helps you retain your customers for longer
When done right, and consistently, loyalty programs engrain a deep sense of loyalty in your customers, increase the customer lifetime value, and make them stick to your brand for longer.
2. It increases your revenue and sales, even without you trying:
Research shows that 50% of customers are willing to alter their behaviour to gain more points on a customer loyalty program. In addition to that, 66% of customers state that their ability to earn rewards changes their spending behavior.
This shows that if you design your loyalty program with the right incentives, customers will be willing to make more frequent transactions with your business.
3. It helps you acquire new customers:
When your customers are happy with the rewards and treatment they receive, they’ll be vocal about it. An effective loyalty program turns your customers into advocates for your brand offline and online, and will introduce new customers to your brand.
Now that you know the benefits of a loyalty program, the next question is:
How do I create a successful loyalty program?
Join us next week as Wii dive into how you can create an effective loyalty program this holiday.
Visit wiicreate.com to get holiday gifts your customers, employees and investors will love. 💙
