In this hyper-competitive market, businesses should retain more customers to sustain business growth. If a company has a large user base of loyal customers, it can strongly compete in the market and boost revenue. Hence, they are finding ways to keep the customer attracted to their products and services. Rewarding customers is a good way to delight their experience. Loyalty programs are tactics to encourage potential customers to make repeat purchases with a particular brand (product or service). Loyalty program members spend near about 12-18% more per year compared to non-loyalty program members.
Most of the businesses from eCommerce to banking, hospitality, retail, etc. are rewarding their frequent shoppers. As the competition advances, offering just quality product or service is not enough. To get lucrative business customers should be felt valued while connecting with a business. Launching a loyalty program is a great way to entice customer participation with a business. However, it should offer some distinct benefits to the customers to make the program successful. This blog provides detailed guidelines on how customers are getting benefits through a loyalty program. And, if the customers are relishing the benefits, the customer churn rate will decrease drastically.
But, before we move on to exploring customer’s benefits through a rewards program, let’s get an overview of what consumers are expecting while you are implementing a loyalty program.
First and foremost, customers want to save their money and feel more valuable with a loyalty program. A financial benefit through a loyalty program is the main trigger for them to become a member. It bonds an emotional connection with a brand. According to a study, more than 80% of customers said they are loyal to a brand that shares values. Value-added experience makes them feel delighted. The more customers are attached to a brand, the more they will be loyal. Besides, the customer wants to choose their rewards. So, allow them choices while presenting perks. Clearly, show that you care about them while offering rewards.
Benefits of implementing a loyalty program for customers
#1. Earn Rewards
Earning rewards is the prime benefit of a loyalty program. As companies offer rewards points, perks, and even giveaways with a loyalty program, customers will get some kind of reward while they sign up for a loyalty program.
#2. Save Cost
Most of the time a financial benefit is associated with a loyalty program. When customers sign up for a loyalty program, they get a special discount which usually saves money. The early bird discount also helps them to save a good bit of money. Typically, the discount range from 10-20% of the standard prices. Thus, businesses are presenting cost benefits to customers and encourage their engagement with a product.
#3. Personalized Services
The customers who have signed up for a loyalty program generally receive personalized services. For instance, on special occasions such as Christmas, birthday or anniversary customers may receive a gift if they have participated in a loyalty program.
#4. Early Access To Promotional Offers
It is a distinct privilege of a loyalty program. The customers who are involved in a loyalty membership program, usually have early access to promotional offers. For instance, Amazon Prime members always have early access to promotional offers and sales.
#5. Add on benefits
Last but not least, some times customers do embrace add one benefits through a loyalty program like free shipments, event passes, discount coupons, etc. Merchants offer various opportunities to entice customer engagement with a product or service with the extra perks.
Apart from the above-mentioned benefits, customers also enjoy excellent customer support by joining a loyalty program. In short, signing up for a loyalty program brings enormous benefits for customers. It may vary from rewards points to personalized services or early access to promotional offers.
Therefore, businesses who want to create a customer loyalty program should look for the specific advantages it will render to the potential customers. They will only participate in a program if it is providing valued experience and other benefits. When you launch a loyalty program with certain strategies to reward potential customers, it increases the chances of success. The more customers participation you will get, the more it will be helpful to increase profitability. The impact of the loyalty program includes customer retention, improved customer relationships, boost sales and profitability.
When you offer distinct benefits to customers along with a loyalty program, ultimately you are acquiring more customer engagement and interactions. As a result, you will be able to expand business growth with loyal customers. Hence, create a customer loyalty program that matches your business requirement and promote business growth.
LoyalytXpert offers a wide range of loyalty programs for all types of businesses, be it a startup or an enterprise. We understand the nature of your business while designing the program to make it successful. Consult the expert loyalty agent today and acquire a loyalty program to take your business to the next level.