When deciding to launch or re-launch a loyalty program, there are two perspectives to take into account.
In 2017 one of the biggest marketing trends is “customer experience.” Through your customers’ eyes, there are two important reason to engage in a loyalty program.
Rewards: From BOGO to discounts, “saving” money is a tremendous motivator and contributor to a positive customer experience.
Recognition: not nearly as tangible as rewards, but still an important motivator for many people, the simple act of being recognized drives customer experience.
The benefits of a business having a loyalty program are multifold.
First and foremost, a good loyalty program is a proven means of reducing customer acquisition costs. In the marketing industry, the general belief is it costs between 5 and 7x to acquire a new customer compared to upselling existing customers.
High quality customer data a robust loyalty program provides is another reason loyalty programs have become ubiquitous.
The more you understand about your customers’ buying habits, the more effectively you can tailor your marketing for peak effectiveness. Under the assumption that no single marketing promotion appeals to every customer, a well-designed loyalty program will help you begin to categorize your customers’ motivations, helping you identify those who are price-driven, those who are status-driven, etc.
To discuss the many other quantifiable benefits a loyalty program can provide your business, and to learn how other organizations have leveraged their loyalty programs, get in touch with us. It’s as easy as clicking on this link. Contact loyalloops today.