Date24 August 2022
Building customer loyalty means customers’ buying decisions are driven through the approval of your brand rather than price and availability. Making use of a Loyalty program for your business harnesses some brilliant benefits that help you drive sales, retain your customers and much more.
Here are 8 Reasons you should strongly consider adopting a Loyalty Program:
Increases customer retention
It costs a lot more money and time to acquire new customers as opposed to retaining them. When you have an engaging and relevant loyalty program, you can keep your current customers satisfied and engaged with your products and services. Customers are more likely to stand by your brand if there are incentives attached to their loyalty. When you retain customers, they become extremely valuable to your brand, as they are more likely to repeat purchases and spend their money with a brand they know and trust, as well as become brand advocates and spread awareness about your products and services to friends and family.
Aids in reaching new customers
There are many innovative ways where you can attract new customers with your loyalty app. One way is via referrals, wherein shoppers gain rewards when they refer other shoppers to download your app. This quickly broadens your customer base and allows you to attract new customers more rapidly. People are a lot more likely to remain loyal to a brand that has been recommended to them, which is another positive of a referral program within your loyalty app. When you are doing business within a highly saturated market, it is also important to stand out, and by having a loyalty app you can do so. This becomes a unique selling point and will gain the attention of new customers. Everyone loves a good deal, therefore providing a downloadable app that allows you to gain incentives will be hugely attractive to new potential customers.
Helps build customer relationships and value
Through the incentives that loyalty apps provide, customer lifetime value will start to increase. This is the overall amount that a business will earn during its relationship with the average customer. Loyalty programs are a great way to improve customer relationships and it helps motivate customers to remain associated with your offerings. Emotional commitment also starts to build over time when the customer receives personalized offerings and incentives which will also boost your sales and customer satisfaction. These meaningful rewards and offerings will further increase your CLV and ensure that your customers remain loyal to you over a prolonged period. This level of personalization needed occurs through the use of high-quality data that you can collect from your loyalty app, which leads us to our next point…
Allows you to collect detailed customer data
When you digitalize your loyalty program into an app, you have access to very important real-time data that provides you with an insight into how your customers engage with your app. Having access to ethically sourced first-party data is incredibly valuable to help you to better understand your customers. Collecting this data enables you to personalize targeted offerings to each customer. Access to this data allows you to be innovative with the different incentives you offer and helps you identify what receives the most engagement from each customer. You can build detailed customer profiles and feedback important information that will help you strategize the best ways to target and connect with your customers on a more personalized level.
Improves customer experience
It is crucial to make sure that your customer enjoys the interactions they have with your brand. Improving customer experience should always be high on the priority list. Introducing a loyalty program will significantly improve customer satisfaction. When you reward customers for their purchases, they will have a positive experience with your brand and its offerings. Your customers will engage with your brand more and they will feel more open to receiving any marketing efforts when they are subscribed to your loyalty program. This again adds to the longevity of your customer/ brand relationship.
Improves your brands reputation
You can strengthen your brand image, affinity, and reputation through your loyalty program. When your customers feel that your brand is valuable to them, they will feel more favourably towards your brand and its reputation. All the incentives and rewards that you offer your customers make them feel valued and help build brand affinity. Consistent marketing efforts can help you keep your brand relevant but having a loyalty program is also a fantastic tool to keep your customers updated about any new offerings, updates, and reminders to shop or purchase your products of interest to them.
Increases sales and profits
By retaining your customers through your loyalty program, you will boost your sales and revenue. It is widely known that retaining customers costs less to the company than acquiring new ones. When you consistently offer your loyal customers incentives, discounts and rewards, they feel more inclined to spend their money on your products and services that they may not have purchased without these offerings. Especially when these offerings are targeting each individual’s personal preferences with loyalty Software data analytics. Loyalty programs encourage customers to spend more money. The more they purchase, the better their incentives are. A loyalty app could also help boost your business during slower seasons by offering more rewards and exciting offers to encourage customers to still make purchases with your business during these times. You can get creative and innovative with your loyalty app offerings.
Helps you gain a competitive advantage
All in all, having a loyalty app can help you stand out amongst your competition. Customers will feel like they are gaining more value and saving money from your business because of the incentives you offer, and this can result in them choosing your products above another competitor. In a highly competitive market, it is imperative to retain your customer base and attract the attention of new customers, and a loyalty app will help you do so. Having your own loyalty app can help differentiate you from your fellow competitors and you can tailor your rewards and incentives in a way that makes shopping or visiting your business a much better choice than those of your competitors.
At MethodWorx, we have all the vital experience and knowledge when it comes to building loyalty apps. We built the PizzaExpress loyalty app which you can view more information on here. We are passionate about finding the perfect solution for our clients’ needs and requirements, and we would love for you to get in contact with us if you have a project in mind, or if you simply would like some guidance. Fill in the contact form below and we will get right back to you!