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:
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:
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.