A large part of succeeding in any type of business concerns making sure customers know they are appreciated. You could send out a thank you card every time someone makes a purchase, but that consumes too much time, money, and fails to create brand loyalty in a meaningful way. Implementing a loyalty program instead gives customers a tangible reason to stick with you and recommend you to other consumers.
3 Reasons Why Loyalty Programs Work
1 — Loyalty and trust are the keys to ongoing relationships both personal and professional. Consumers are no longer limited to the businesses in their town. On the internet, they can find a seemingly infinite number of solutions to their needs in seconds. If you cannot make them trust you, they will not give you their money. Loyalty programs reward trust.
The goal is not to meet new friends. Instead, every person who signs up for the program becomes more likely to stay a customer longer as long as your company delivers top-quality goods or services. Giving them something back for trusting you augments the feeling.
2 – Program marketing creates ongoing touchpoints so consumers cannot forget. Not only are customers or clients reminded of what your company offers when they make a purchase, but they also are when they get rewards. The loyalty program adds another layer of marketing potential to your overall strategy.
Consumers may watch for new product announcements on social media, but with a loyal customer program in place, they will look twice as much for new rewards. Separate email newsletters are another possibility.
3 – Word of mouth marketing, reviews, and referrals get a boost from loyalty reward systems. Who wouldn’t want to tell their friends when they got money back, free items, or other perks just for being a customer of a particular company? These powerful types of organic marketing only come from pure satisfaction, and catering to consumers’ interests makes it easier. You might consider combining loyalty rewards with some for recommending new customers or clients to the website or contact forms.
Unique Ideas for Loyalty Programs
When you think about implementing a loyalty program, remember to tailor it to what your customers or clients really care about while keeping it in alignment with what your company offers.
The very early years of programs like this included small cards with punch holes showing the number of purchases before a free gift. That has transformed into smartphone apps in which consumers accumulate points to exchange for gift cards or other prizes. New programs live entirely on mobile devices, which is where most people do their shopping or business research these days. Influencer reward marketing and gamification make sense depending on the industry or niche.
In the end, a launching a loyalty program is all about creating trust, boosting brand reputation, and pushing consumers to do more of your marketing for you. Repeat business is easier and more lucrative than new contacts. Repeat business that also shares your links, products, and services with other interested consumers is gold.