Maybe you know you need to launch a customer loyalty program at your Anchorage business but you just haven’t gotten started yet.
Or maybe you’re not fully convinced of the value of something like this and that’s why you’ve been holding off all these years.
Whatever the case may be, we’re hoping this blog gives you the final push you need to take the leap!
A customer loyalty program can be a great way to improve customer retention, generate referrals, and increase sales.
Take a look at our list of 5 reasons to launch a customer loyalty program in Anchorage.
1. Customer Loyalty Programs Improve Customer Retention
There are two kinds of customer loyalty programs, membership-based and rewards-based.
Membership-based customer loyalty programs allow your Anchorage customers to be included in something exclusive.
Rewards-based customer loyalty programs create a system in which your Anchorage customers can achieve something.
Both inclusion and achievement are powerful players in the human psyche.
Wherever a person can find either of these psychological benefits, they will likely come back to experience them again.
This means that customer loyalty programs are powerful for customer retention!
2. They Generate Referrals for Your Anchorage Business
Retained customers are loyal customers.
Customer loyalty programs have the added benefit of generating referrals from the happy customers who participate in them!
If you are looking to grow your Anchorage customer base, launching a customer loyalty program for your current customers is a smart strategy.
If it’s a truly valuable customer loyalty program, your current customers are going to tell their friends.
Customer loyalty programs can generate a lot of positive word-of-mouth.
3. Customer Loyalty Programs Increase Sales
If improved customer retention and referrals aren’t enough to convince you, how about the increased sales that result?
The data shows that retained customers spend more money than new ones.
According to business.com, current customers spend 67% more than new customers.
Furthermore, customers who are a part of a loyalty program spend more money than those who are not.
According to Business Insider, Amazon Prime members spend almost twice as much as non-members.
How would you like to see your current customers spend 67%-200% more money at your Anchorage business?
4. They Save Your Anchorage Business Money
If you’ve ever looked at the marketing costs for capturing new customers, you know that it takes a pretty penny.
Some say it costs as much as 5X the amount of money to earn a new customer as it does to keep an old one!
Customer loyalty programs can significantly cut down your marketing dollars.
5. Customer Loyalty Programs Provide Market Research
One of the best ways to get a feel for your Anchorage customers’ thoughts about your pricing and promotions is to run a customer loyalty program.
You will be able to see how they respond to inform future pricing, promotion, and program decisions.
Market research can be very expensive; this is a relatively low-budget way to get some of that data!
How are you feeling?
Are you finally ready to launch a customer loyalty program at your Anchorage business?
We hope that these 5 reasons fuel your desire to get started.
If you need a partner to help you design the right customer loyalty program for your business and to get it off the ground, we would love to talk to you.
We have been helping Anchorage businesses find payment processing solutions for over 20 years, more recently adding customer loyalty program integrations!