All too often, businesses focus on attracting new customers and don’t pay enough attention to building loyalty amongst existing customers. Return custom can account for a large percentage of your revenue and is vital to long-term success. A satisfied customer will also help to spread the word about your business.
So what is a customer loyalty program and why is retention so important for business?
What is a customer loyalty program?
Customer loyalty schemes are an effective way to retain customers and encourage them to build loyalty to your brand.
Customer loyalty programs can take many forms: points banking systems, big prizes and offering freebies after a number of purchases.
Customer loyalty schemes can be tailored to your business and as they take different forms, there are options to suit small or large budgets.
Why is a customer loyalty program important for business?
Helping to retain customers and build loyalty is important for a number of reasons.
Consistent and steady growth
Returning customers are the backbone of any business and can even account for the largest proportion of revenue. Returning customers to many ecommerce businesses can account for 30% of all custom – or even more!
By implementing a loyalty program, you are encouraging customers to return time and time again. Once you have a loyal customer base, you will see consistent, steady business growth.
Rewarding customer loyalty helps to show your appreciation. If customers feel appreciated and valued, then they are more likely to return.
Even a small gesture can go a long way. For example, you may want to offer a loyalty card and on the 10th purchase they get a free gift or discount.
Creating a sense of loyalty to your brand and building an emotional connection helps you to build relationships with customers.
By building relationships, you also get a better understanding of what your customers want and can tailor offers to them.
Creates brand ambassadors
A benefit that shouldn’t be underestimated is word-of-mouth recommendations. If your customers are satisfied, they are more likely to leave positive reviews and recommend you to others. This can be invaluable to attracting new customers.
Online customer loyalty program
Our proven online customer loyalty platform, is easy to implement and fully customisable to your business requirements and offers:
- Fully responsive design
- Integrates seamlessly with sales data as well as third-party applications
- A range of rewards from e-cards, products, experiences and vouchers.
Ready to talk about customer loyalty programs?
Telephone: +44 370 405 2020