Maybe you are a new business owner full of fresh energy and big ideas for the future success of your business.
Maybe you are a long-time Alaska business professional who wants to boost your offer.
Whatever the case may be, your research has brought you here, which means you must be asking the question, “Should my business have a customer loyalty program? Are they really that important?”
The short answer is this: Yes. Customer loyalty programs reap dividends for the business owners who implement them. Not only can they increase sales to the point of paying for themselves and beyond, but they also have profound effects on the social awareness and reputation of the businesses they work for.
That being said, customer loyalty programs can be expensive. Many business owners are hesitant to take the leap of faith required to get a customer loyalty program off the ground. We’re here to help calm those fears with some facts and data that make these programs an imperative for businesses of all sizes.
Loyalty Programs…Build Customer Loyalty
Customer retention is a hard thing to achieve, but loyalty programs excel at it. They use human psychology, and the proof is in the data. According to a Consumer Intelligence report, Amazon Prime members spend almost twice the amount that non-members do. Why do you think that is? Amazon is allowing self-identified repeat customers to sign-up for an exclusive membership that generates rewards for them for every purchase they make, a powerful incentive for a human psyche that values inclusion and achievement.
They Save…and Make You Money
Common business lure states that it costs five times as much to attract a new customer than it does to keep an existing one, making customer retention incredibly valuable for savings in marketing and sales. What is more, existing customers are known to spend 67% more money than new ones. Stats like these should make establishing a customer loyalty program paramount among the goals of all kinds of businesses.
Loyalty Programs Provide Valuable Market Research
Customer loyalty programs can be a testing ground for getting to know your target market. Potential incentives include additional or discounted products, services, or relevant prizes. By incorporating these incentives at your business, you can get a feel for your customers’ likes and dislikes and refine your offerings.
They Generate Referrals
One of the greatest benefits of loyalty programs is their power generate referrals. Loyal customers share their preferences for brands with their friends, something called word-of-mouth-marketing or “WOMM.” When customers are not just happy with your product or service, but genuinely invested in the continuation of your brand because of the loyalty and trust you have built with them, they can become more than just referrers, but advocates for your brand to the rest of the community!
Customer loyalty programs tap into the wants and needs of customers to fulfill them and encourage customer retention. They save money on lost opportunities and provide valuable research into a business’s target market. Finally, they inspire advocacy among customers, something invaluable for businesses of all industries. If you would like to establish a customer loyalty program for your business, contact Cornerstone Credit Services, a payment processing company for Alaska. At Cornerstone, we have almost 20 years of experience providing credit and debit card processing to Alaska businesses and we would be happy to assist you in this new endeavor.