Benefits of loyalty points

10/01/2022

Customer experiences matter a lot to businesses these days. A satisfied and delighted customer brings the desired profits and sales that allow brands to achieve the desired success in the long run. But, how to keep customers engaged with the brand offering? That's where customer loyalty and rewards programs come to use. It keeps the customers coming back to their favourite brand despite the unique offerings of the competitors.

The expectations and preferences of the customers are diversifying every day. Businesses need to be aware of the customer demands if they wish to grow and succeed at all times. A customer loyalty and reward program is a great way to attract new consumers and keep the previous ones engaged with the brand offerings.

In smaller businesses, keeping the customer engaged is a different challenge altogether. The money is not always free-flowing. They need to make informed decisions and invest their capital wisely. When it comes to investing in customer loyalty and rewards, most small-scale businesses consider it a choice. This perception needs to change if the aim is to earn a desired level of profits. Businesses of every scale need to realize customer loyalty programs play a pivotal role in their growth. If you are the one who still hasn't invested in customer loyalty programs, consider your actions again.

Customer loyalty and rewards program: Why does your business need one?

Most businesses go through the dilemma of whether they should focus on customer acquisition or retention. Here's a brief study to help you out. 75% of the customers have agreed that they would switch brands for a better loyalty program. Other research has found that customers prioritize and shop with brands that offer exclusive rewards. Customer loyalty and rewards leave a massive impact on your business.

Forbes research says that 80% of the business comes from just 20% of the customers. Imagine the scenario where around 60-70% of your customers are satisfied with your brand offerings. How much will it benefit your business?!!

With a well-curated customer loyalty program, you can tap into the key drivers of customer loyalty. When you add exclusive rewards in a loyalty program that actually excites your customers, you simply make your brand offerings powerful and unique which sets you apart from others. What's the result?? A large and satisfied customer base!

The undeniable benefits of customer loyalty and rewards program

A customer loyalty program does a lot more than just retaining and attracting your target market. Want to know about them? Let's explore them so you can make the most out of your customer loyalty program:

No need to compete on price with customers

There are countless options available to customers to compare the price for a particular product. Still, they keep on purchasing from their favorite brand. What engages them? The emotional value of the product or any other offer. Tapping the customers' emotions in the right way will help you to keep them loyal to your brand offerings. Every time you reward a customer that appeals to their emotional side, you'll create a bond with them.

Customer loyalty rewards are effective to surprise and delight your customers. Another tip - you can come up with something that previously went unnoticed. It strengthens their loyalty and encourages repeat purchases that boost your business profits. No need to compete with competitors on product pricing.

Increased customer lifetime value

Customer lifetime value tells a lot about the loyalty of the customers and their future bond with your brand in the future. With customer loyalty programs, you can track the CLV for every customer. It means you can reward your customers at each step of the journey and increase your CLV as well.

Build brand advocates

Positive and genuine word of mouth works positively for your business. The delighted customers work as brand advocates who'll refer your offerings to their closed ones. These recommendations do the marketing that you want for your business. Well, that's the power of advocacy in action.

Want to implement a customer loyalty and rewards program in your business?

Speed {IT} helps B2C businesses succeed with its advanced digital solutions. Customer loyalty and rewards programs are one of them. We help take your brand to the next level.