These days, loyalty programs are the key to many small businesses’ success. They are a decisive factor, and a major step towards an impactful customer experience.
In times when bad experience with your business can draw even the most dedicated customers away, it’s extremely important to tailor the perfect loyalty program for your business, to enhance those experiences that determine the future relations with your customers.
Creating a perfect loyalty program requires accurate planning and unique customer loyalty software. The setup is super challenging and the maintenance might require substantial time and effort.
An automated loyalty program has a lot of benefits. It benefits the customers with meaningful communication flow, but also significantly increases the revenue of small businesses, without the hassle of the actual planning and monitoring.
Using a loyalty program will allow you to get great business benefits, such as:
Using a loyalty program is a tool to increase customer retention. Rewarding customers for regular purchases makes them more loyal and willing to spend more money. People who know and trust a brand can significantly increase the revenue generated by returning purchases. For example, when retention increases by 5%, it can generate a 25-95% boost in revenue.
Help to save money
To create and implement a loyalty program, a business has to invest some budget. However, based on customer retention strategies, it’s 25% cheaper than programs that attract new customers. In short – investing in bringing your customers back and transform them into regulars will cost you less and pay you more. This is why it is so important to handle your repeat customers.
Gather useful data
A personalized experience becomes more and more important, even expected by default these days. Especially for Millennials and Generation X, personalization is a high priority. Asking customers to fill in a data form while joining a loyalty program, you can gather useful information to increase revenue. This data can be used to create targeted promotional campaigns, increase connection with the clients, and help you to personalize user experience. It’s obvious that knowing the birthdates of your clients, for example, and using it to show you care, is a powerful tool.
With data gathered through forms, making better suggestions for customers becomes simpler. Once a brand knows their preferences, it is easier to create a personalized user experience. Displaying the right products, and suggesting accessories that go well with them, improves the chance that a person is going to purchase them.
Loyalty points can also help a company during the low season. For example, in airlines’ frequent flyer programs, loyalty points can be used for particular flights only. This way, loyalty programs help to increase sales in hard times or to boost the sales of specifically slow-moving products or services.
Make customers feel appreciated
The more personalized a loyalty program is, the more connected a customer feels with a brand. Giving special offers or special loyalty points, for example, for customer’s anniversaries or special holiday campaigns, can create an emotional connection with a brand.
Reducing resources for unprofitable customers
The automated loyalty programs’ helps to understand which customers are profitable and which are unnecessary weight for a company’s budget. A well-designed program is able to identify clients that purchase only discounted products. If clients never order goods at regular prices, they can cost more money than generated. The loyalty programs can reward profitable customers more and optimize costs and losses.
Self-sufficient loyalty program
It can take a while to design a successful loyalty program. However, with automatic and smart online tools today – , the program becomes self-sufficient. It is important to look into metrics of performance now and then and check on how well the service runs the program and generate the desired outcomes, but most of the work is automatically processed, and saves a lot of time, efforts and costs of management and maintenance of the program.
Attract new customers
As mentioned before, attracting new customers can be expensive and creating a great loyalty program can be an easy way to secure and empower the current oness. After experiencing the loyalty program benefits, new clients are more likely to trust a brand and decide to purchase products again.
Creating loyalty programs can increase revenue, and encourage the customer to be an advocate for the brand. There is no better marketing than word of mouth from loyal customers who have actually been rewarded.
At GLUE, the loyalty program professionals will take into account the right rewards, coupons, point mechanisms, and much more using smart technology.Thanks to clear analytics embedded in Glue, is it easy to understand how much more money your business earns when executing the loyalty program.
After designing an automated loyalty program, GLUE sends the right messages, to the right person, at the right time, to boost customer retention and increase the company’s revenue.
Photograph by Nick Webb