Customer loyalty programs have gained a lot of prominence over the last few years. A customer loyalty program is a program run by a company that offers great benefits to the customers in the form of discounts, freebies, offers, promotions, and free products and samples among others. It is designed to ensure that the customer sticks to the brand – maintaining brand loyalty and keeps coming back frequently. Not only this, a good customer loyalty program can also lead to great word of mouth publicity, which in turn can help you attract more customers without having to do anything.
What is the purpose of a customer loyalty program?
Apart from ensuring that your customers stick by your brand loyally, a customer loyalty program can also help you understand the demographics and psychographics of your customer very well. It can not only help you boost your business but will also help you strengthen your relationship with your customers.
What should you keep in mind when designing a customer loyalty program?
When designing a customer loyalty program, the most important things to keep in mind are – what is in it for the customer? What is the gratification that the end consumer will receive? Is it attractive enough? Will it help retain the customer? Is it of interest to the customer? Does it satisfy his needs?
Here are a few reasons why you should have a customer loyalty program for your business
- Customer Retention: The most important objective of having a customer loyalty program is to retain customers for their loyalty and repeat purchase behavior. And the best way to retain a customer or ensure his complete loyalty is by offering him products/offers that might interest him. You also end up saving a lot of money trying to get new customers since your existing customers often act as brand endorsers. Word of mouth publicity usually helps garner more customers since it comes from a verified and trustworthy source. People are more likely to trust friends/people who are existing customers of a brand than they would trust an ad.
Thus, a great customer loyalty program is of great help to not only retain your existing customers but to also get new customers on-board.
- Better and personalized communication: With a well-designed customer loyalty program you can directly communicate with your customers, which is a great way to create recall and stay on top of the mind of your customers. Since you have the liberty to communicate with your customers directly, it makes it easier and quicker to communicate with your customers about offers, benefits, and any other information that you would want to share with them. You can also personalize emails by matching them with the date of purchase or on the basis of the kind of purchase the customer makes. This helps strengthen the bond with your customer since you are only providing them information and offers that might be of interest and relevance to them.
- Great way to know your customer: An efficient customer loyalty program will help you not only communicate with your customer but will also help you delve deeper into their likes and dislikes. This in turn, can be useful to understand your customer better, create effective communication with them, give them offers and deals that will suit their tastes and needs.
- Lets the customer know you care: When you know the needs of your customers, you can customize offers and deals for them, thus making them feel that the brand thinks about them. This not only makes the customer feel that you care about them but is also effective in retaining a customer.
- Helps improve sales: The more options you offer, the more people will want to buy your products. With a good customer loyalty program, you can offer exclusive discounts, merchandise, freebies, to members. Once a customer gets used to your products, not only will you have his loyalty for life, but you also have an endorser who will promote your product to others.
nth Rewards is potentially the largest multi-brand loyalty platform designed by NPCI, to help brands engage & retain customers. You too can become a partner and ensure great visibility for your brand.