Any experienced entrepreneur knows that attracting a new customer is much more expensive than retaining a regular visitor.
And even if the company makes various discounts to returning customers, it will still be a plus in the long run. Loyalty programs are one of the most effective tools to retain customers. This marketing technique works in many different areas and is suitable for both large and small businesses.
Experts often point to non gamstop betting sites as an example. Representatives of the gambling industry have to work in difficult conditions. Most players are sceptical about online casinos initially. The system of personal privileges helps to melt the ice in the heart of a potential client.
How are loyalty systems today?
This is a system of rewards for regular customers. Loyalty programs offer exclusive benefits to their members. These can be discount coupons, points that can be redeemed for something useful or interesting, rewards, and special offers.
Regardless of your business, you can find ways to reward customers with exclusive benefits. Actions like these make existing customers feel valued, which increases their satisfaction with the brand.
Increase customer trust
This is the main thing that companies implement loyalty programs for. After all, such a trusting user will make more and more purchases and not think twice about the prices. But don’t be fooled; in this day and age, a price discount alone will not be enough. So make sure you have great service and the visitor gets everything he really needs.
Reduce the cost of customer acquisition
To attract new customers, you need to spend some money on advertising, find time and effort. To do this, your company will most likely have to hire new employees. As a consequence, you may also have management problems.
You’ll have to spend on loyalty programs too. But there will be a greater return on this marketing move. The businessman will be able to get by with a smaller budget and fewer employees.
Increasing the average cheque
When a customer sees that he lacks a certain number of points to get a bigger prize, he starts spending more. If your loyalty program is designed correctly, you will get a higher average check.
Plus, when you launch a personalized rewards program, then many people around will start talking about it, including various media outlets. This will make your brand more recognisable, and you will get even more orders.
Attracting new customers
You can directly pay or offer something exclusive for referring other customers. This is called a referral program. How great this works is shown in the TV series Silicon Valley. Here, one of the top programmers, for the sake of getting exclusive discs for his electric car, literally forced several electric cars on other employees of his company.
When a person is really happy with your company (and loyalty programs increase the number of such people), they will start recommending your firm to other people. This starts a cycle of free advertising, which is extremely valuable for your brand.
It should be noted that advertising that a person receives from someone they know well is the most effective type of product promotion.
Read more:
Loyalty programs in business: why it is important
