In today’s times when change is the only constant, retaining your loyal customers is critical for success. The payoff for customer retention is big: a 5% increase in retained customers yields 25-95% more profit, according to Bain & Company. Loyalty rewards programs can not only turn your shoppers into brand advocates, but also improve positive referrals for your brand, and get them to spend more at your business.
According to a study, the top 10% of your most loyal customers spend three times more per order than the lower 90%. And the top 1% spends five times more than the lower 99%. Loyalty programs will not only increase customer retention, they also allow a competitive advantage along with increased profitability. If your Effective loyalty program rewards offer personalized brand experiences and makes your customers feel valued, this will encourage more spend and greater brand loyalty. Loyalty rewards programs that go beyond offering discounts give their members the opportunity to feel part of an exclusive community in exchange for their brand loyalty.
Loyalty matters more than ever and in order to reduce your marketing costs and increase your sales, the most cost effective way is to build Effective loyalty program rewards. A potent loyalty program monitors customer purchasing behavior and incentivizes their loyalty by offering exclusive perks and benefits to loyal customers so that they continue to come back for more.
Just take a look at some of the stats:
- 75% of advocates are likely to share a good experience
- Brand advocates are 50% more likely to influence a purchase
- 90% of advocates write something positive about their purchasing experience
- A 12% increase in advocacy = 2x increase in revenue growth
Loyalty reward programs drive repeat business making retention vital, accelerate your profits, insulate your business from competitors, ensure customer satisfaction and drive referrals, give you insights into what your customers want so that you can leverage that data and personalize your offerings, ‘ According to Troy Ireland, CEO of the SEO agency Digital Current:
Understanding the purchasing behavior of a specific demographic is one of the most important sets of research data available to marketers. To develop a strategic plan to present your products in a way that produces the most optimal buying behavior, one needs to understand what the target audience avoids as much as what triggers them to spend their money.
Here are some top strategies to build effective loyalty reward programs:
- It’s important to keep your loyalty rewards program simple and intuitive for customers to understand.
- Always list your contact information. So, if the customers have any questions regarding the program, they can connect with your business.
- Make sure you offer tangible rewards for your potential customers.
- Tiered program is one of the best ways to reward your best customers with greater deals. Also, segment your customers as per demographics, collect data-driven insights on what messaging works best for certain segments of the audience. Create great content that resonates with the interests of the segment.
- Experiment and cultivate effective promotional offers for customers.
- Send gentle reminders to your customers about using the earned points. Hence, send customized email/SMS messages based on purchasing habits.
- Prepare and train your team to aggressively and passionately promote the loyalty program.
- Advertising and social media posts are a great way to entice customer interest and create awareness about your loyalty program.
- Loyalty rewards programs have moved beyond paper and plastic to mobile apps. Customers want a seamless cross-channel experience, where they can view and redeem their points across multiple channels.
Annex Cloud’s advanced digital-ready customer retention and loyalty solutions maximize average order values (AOV), increase frequency of purchase (FOP) and are designed to engage and reward your most valuable customers. Get in touch with us today.