It is an established marketing fact that it takes more resources and money to acquire a new customer for your business than it does to keep an existing one. A loyalty card program is one of the best ways to retain your existing customers while attracting new ones. You can use print or online resources for your loyalty card programs, depending on your budget.
Here are some key benefits of loyalty card programmes that you might be missing out on if you don’t have a strategy in place yet:
A Cost-Effective Marketing Solution
Loyalty cards online, or in-store programmes, basically involve rewarding a customer for repeat purchases. The reward could be discounts, free gifts, vouchers, custom name badges or other benefit, on future purchases. A loyalty card programme doesn’t require a huge investment.
The resources that you would allocate, including dedicated personnel to run the programme, rewards, and printing the cards, are all less expensive, compared to the cost that you would incur on acquiring a new customer.
There are several low-cost apps available for executing loyalty cards online programmes.
Ultimately, the business you earn on the strength of your programme outruns the investment.
Encourages Purchase Behaviour in Customers
When customers get to know that repeat purchases will fetch them useful rewards, they will be more persuaded to buy from your online or physical store. The frequency of purchase for a particular reward also gives insight into its popularity. So, you could consider using that reward more over a non-performing one.
It is also recommended to keep changing the rewards to keep the programme fresh for customers.
Turns Customers into Brand Ambassadors
Rewarded customers feel valued. This feeling is more likely to induce loyalty in them for your brand. This satisfaction also translates into a strong customer base for you, and results in good word-of-mouth reputation. You also attract new customers for happy customer are more likely to recommend you to others.
Improves Cross-Selling Prospects
Using existing product/service as rewards for your loyalty programme will increase customer awareness. This can promote the sales of the product/ service.
Say, your loyalty programme involves giving your customers a free box of chocolates as gift after a specific number of purchases. After tasting the chocolates, customers might be tempted to buy a box each time they visit your store.
Imparts Key Customer Insights
When executed efficiently, a loyalty card programme helps build key marketing research data. The process gives insights into customer buying habits, product preferences, and demography details. This information can help you adjust existing card programme, strategize future marketing campaigns, and even fuel your product research programmes.
Helps you Stay Ahead of the Crowd
When implemented consistently, a loyalty card programme builds your brand reputation, increases sales, and helps build stronger customer relations- all strategic advantages that put your several miles ahead of your competitors.
Whether you are a small or medium business, or a prominent brand, a loyalty card programme delivers said benefits for one and all. Study the results and refine your strategy accordingly to keep gaining from the programme.