Top 7 Reasons Why Customer Loyalty Programs are Essential
Reading time: 2.5 minutes
By: ServingIntel
Loyal and returning customers are the biggest contributing factor for businesses to stay profitable and earn sales, continuously. Roughly 80% of your sales come from 20% of your clients. Customer Loyalty Programs are a great way to celebrate that 20% and create more lifelong customers.
Better Customer Communication
Having a customer loyalty program allows you to communicate with clients, most especially for promoting special events, sales, and new products. During recall cases, you can directly email customers regarding recalled items rather than sending a system-generated email which is most likely to be ignored through purchase date matching.
Brand Advocate Creation
You want more than just customers; you want advocates for your brand. Advocates will spread how awesome your company is to their friends, family, and colleagues. Word-of-mouth is a very convincing strategy than any other type of brand advert material. If you always make your customers satisfied, they will become the best referral network asset.
Consistency in Being Competitive
To remain competitive, you need to offer something special and different than your competitors. Otherwise, your customers will likely drift away from your brand and go somewhere else.
Market Products that You and Your Customers Want
Through your loyalty program, you can track your customers’ purchase history. This allows you to see what items to sell and are able to market and transfer items you want to trade properly.
Let the “Good” Ones Come Back
Creating a loyalty program that gives incentives to “good” clients can drive “bad” customers out (customers who only take advantage of sales and discounts and don’t purchase enough). Loyalty programs can also win back lost customers. Loyalty programs that a 3-4 x higher rate of bringing back old customers than bringing new customers in.
Entice New Customers
One way to attract new customers is a loyalty program that offers great rewards. But acquiring new customers isn’t the main objective of loyalty programs. They are best to maintain and continue retaining the old ones.
Keep Longstanding Customers
Retaining consistent customers plays a huge role in your business’ success. A loyalty program is one great way for customers to stay and continue purchasing. It also provides data that enables businesses to meet customers’ needs and wants.
Takeaway
Loyalty programs are essential for businesses to retain old customers and acquire new ones. It allows them to set valuable rewards that successfully capture a customer’s attention. There is more to loyalty programs than meet the eye. So to stay on track with the competition, start creating your loyalty program now.
About ServingIntel
ServingIntel is an international hospitality technology company that creates cloud-based enterprise and point-of-sale solutions serving a variety of hospitality industries, including restaurants, country clubs, hospitals, and senior living communities. Providing complete software, mobile hardware, and business intelligence software through its ServingIntel.com platform, ServingIntel increases revenue and profit in foodservice operations, while enhancing service and quality levels for the guests.
Reference:
www.annexcloud.com