If you’re looking for a way to grow your business, you should consider implementing a customer loyalty program. Loyalty programs are a great way to encourage customers to keep coming back and spending money with your company. They also create a stronger connection between your business and your customers, which can lead to increased revenue.
In this blog post, we’ll discuss the benefits of customer loyalty programs and how to set one up for your business. We’ll also touch upon the benefits of using a digital loyalty program rather than a physical one, so let’s get into it!
How Does a Customer Loyalty Program Boost Business?
A customer loyalty program is a great way to grow your business and the proof is in the data. According to The Harvard Business Review, businesses that lead in customer loyalty grow their revenue 2.5 times faster than their industry peers. But why?
Well for one, most if not all customers love a good discount and many loyalty programs offer special offers and discounts for their members. These discounts incentivize consumers to spend and purchase more than they regularly would because they can’t turn down an enticing offer.
Loyalty members buy more often and spend more than non-loyalty members, resulting in a 5-10% revenue increase, talk about boosting your business!
Secondly, loyalty programs make customers feel special and more connected to your business. By joining your loyalty program, customers feel like they are part of your brand’s community and they develop an emotional connection to your business.
Many loyalty programs also include exclusive access to limited edition products only for their loyalty members. By limiting what you offer and to whom, customers will place your exclusive products at a higher value and they will be more likely to make purchases based on the exclusivity and limited-time offers, increasing your revenue and customer satisfaction.
A killer loyalty or rewards program can also help your business beat out competitors who aren’t as focused on customer retention.
Loyalty programs give your business a competitive advantage so you can stay on top.
Lastly, loyalty members are much more likely to leave positive reviews for your business and recommend you to a friend. This is likely because happy customers feel appreciated by your business through exclusive offers and positive experiences. With more positive reviews and testimonials on Google My Business, Yelp, and your website, you can improve your SEO ranking and attract more customers. What’s better than more revenue and free marketing?!
Overall, a loyalty program increases your customer retention rate so you have a reliable base of repeat customers to keep your business afloat and thriving.
There are several things you need to consider when setting up a customer loyalty discount program, such as how you will structure the rewards and how you will market the program to appeal to your customers. Let’s take a closer look at each of these factors.
The Various Types Of Loyalty Programs
When setting up a customer loyalty program, you need to consider how you will structure the rewards. There are many different ways to do this, but you need to find a way that will appeal to your valuable customers and encourage them to keep coming back.
One way to structure your rewards is to offer a points-based loyalty program. Customers can earn points for every purchase they make and they can redeem those points for discounts or exclusive products. Another way to structure your rewards is to offer tiered benefits, where the more customers spend, the more perks they unlock.
Many companies add a level of personalization to their rewards programs to boost engagement levels.
These loyalty programs offer specific discounts for customers based on customer preferences and purchase history, rather than generic discounts that are offered to the entire consumer base. This type of loyalty program requires strategies to track consumer behavior, so it is a bit more advanced than your typical approach to customer loyalty programs
Some businesses use a paper punch card loyalty program, while others use a plastic card that scans or swipes at the register to collect rewards. However, the most effective loyalty programs are digital. You could add digital rewards points to a member’s account on your system with automated email or text updates, but a special app for your loyalty program is the best way to go.
Today’s customers are all about their smart devices and while they might accidentally leave their physical loyalty cards or wallets at home, they won’t be caught dead outside without their smartphones. Empowering your customers to collect loyalty points and even pay with their smart devices is the best way to capture loyal customers and boost long-term business growth.
Marketing Your New Loyalty Program
You need to market your new loyalty program in a way that will make it appealing to your customers. You can do this by advertising your loyalty discounts or special offers through email, on social media, and in digital PPC ads. While your already loyal customers will advertise your program through word of mouth, you can’t just rely on this avenue as your only marketing technique.
Invest in your business growth by setting up an ad campaign or advertising your new loyalty program in your weekly newsletter. You can also get creative with your marketing by hosting a launch event for your loyalty program. This is a great way to get people excited about your program and sign up.
Make sure you track the success of your marketing campaigns so you can see what’s working and adjust your strategy accordingly. Keep in mind that it takes time to grow a loyal customer base, so don’t give up if you don’t see results immediately.
An All-In-One Digital Loyalty Program and Marketing Solution
If you want a fast and catch-all way to create and market a customer loyalty program that will boost your business, apocket has your solution. Our app holds your customer loyalty card digitally, right on your consumer’s smartphone; empowering your business with an innovative customer loyalty program. The DigitalGift app is compatible with all smart devices including iPhones, Androids, and more.
DigitalGift also uses geo-fencing technology to target potential customers within 50 miles of your business by pushing your loyalty card to the top of the list. In the future, DigitalGift will provide a way for you to market your rewards program that doesn’t cost an arm and a leg. So get on board to grow with apocket and grow your business.
Sign up to become an DigitalGift merchant today or contact us to learn more about how we can help you achieve long-term business growth with a digital loyalty program.
Check out our blog for more loyalty program tips to sky-rocket your customer retention rates and profits.