Customer Loyalty – To maintain sales and profitability, traditional and online merchants must find innovative ways and be consistent with their quality service to increase their number of repeat customers. One of these methods to increase regular consumers’ activities is to implement useful and attention-grabbing loyalty programs that will surely attract more potential customers. However, loyalty programs depend on the business concept and objectives, where profitability and progress can be increased when loyal customers are well maintained and consistent. The most prolific loyalty program convinces customers that they will be well compensated if they spend more on the intended product or service you are providing.
Let’s take a look at how these programs help increase repeat business:
These programs purchase several items and get a gift or offer a discount on the coupon for the next thing that will encourage your customers to come back to the retailer and buy more. For instance, when a customer has to buy 5 bags of an item to use one bag for free, the company will make more money selling the ten packs instead of losing money with one free bag or other freebies. This also applies in the case of loyalty programs with cashback and discounts. Examples are point programs and frequent shopping programs, to name a few.
The number of customers looking for free shipping when ordering online has never been higher. Offering a loyalty program where free shipping is provided to the customer is ideal and increasing repeat business.
Word of Mouth
Word of mouth is one of the most prominent and most free advertising. Likely, a customer who has had a positive experience or who is already participating in a loyalty program will most likely involve a friend in the company who would like to be part of the program. It doesn’t matter whether you offer reward points, item discounts, or cashback, providing the customer with what they cherish most. Of course, it will lead to some increase in sales and will significantly contribute to customer satisfaction that will make through repeat purchases.
This can be taken as proof by the customers that you value and appreciate their patronage. Consumers are eager to be rewarded and are more likely to come back and spend more. This loyalty is established and fosters a large and healthy loyal clientele. The business’s investment in a rewards program is much less than the benefits obtained since it is sure to accept a substantial return on its investment that they put at stake.
More companies are turning to introducing and setting up loyalty programs. They have found that it is more profitable to retain their existing customers than to find ways to attract new customers. They help motivate shoppers to shop more often, thus increasing their spending. In these challenging times, it’s handy to make the most of all the marketing tools available. Implementing and managing a loyalty program effectively and successfully will increase repeat customers and help build a loyal brand and customer satisfaction.
Everybody loves freebies! As a tool to increase retail marketing, rewards programs are becoming very popular with customers these days. Loyalty cards encourage customers to buy and stay in a specific store that they usually go to. When bonus points are offered, customers will prefer that particular store over another, which will help businesses build a solid foundation of customer loyalty, increasing sales.