Customer loyalty programs, or customer rewards programs have proven to be invaluable. They can not only increase the frequency of purchases but they can also increase retention.
The best loyalty programs can offer:
- Free gifts
- Discounts available only to the customer
- Access to new products before other customers
- Points that can be accumulated and used toward products or used as cash
Loyalty and reward programs are also hugely beneficial because happy customers will talk about the type of rewards they’re receiving, which means they will serve as a spokesperson of sorts for your business. Feeling appreciated they will tell their friends and family, and those people will more than likely want to experience the same kind of benefits. And just like that, business is booming.
Rewards programs also are a great way to get information about your customers. You will learn what they like and the type of rewards that motivate them. These programs also make your customers feel appreciated and special and when that happens your business will be positively impacted.
One of the best things about loyalty and rewards programs is that they’re not nearly as expensive as you might think. When deciding whether to institute such a program, it’s natural to think that you might have to use up way too much of your resources to make it successful.
The fact is, it costs less to retain a customer than it does to chase after new ones (although getting new customers will ALWAYS be a goal). That means no matter what the cost of a rewards program, it will be more beneficial and less expensive than luring new customers to the table. And going back to the top reason rewards programs work, the additional business generated from customers who feel appreciated will likely pale in comparison to the cost you incur to make them part of your business.