Customer loyalty is the process of ensuring that people continue to buy from a business even when different options are available. It can be in the form of products or service, although it can also be around brand recognition or social credibility in some cases. Also, your product has to be desirable and well-understood; customers will be more likely to support you if they perceive you as reliable.
Whilst it may seem odd to focus so heavily on customer loyalty when running a business. There’s some good observed evidence to back up this approach. For example, a study found that companies with high customer loyalty were more likely to profit, even with controlling factors such as market share and company size. Numerous other studies have also found that customer loyalty predicts both the success of a business and its products/services.
But how do you keep customers loyal? Through loyalty programs. It is a great way to make sure you’re able to retain key customers.
What is Loyalty Programs?
Companies are always looking for new ways to keep customers happy. A recent study showed that 92% of consumers would buy a product or service from a company that has a loyalty program. A loyalty program gives retailers a chance to develop these relationships with their customers and increase their brand value.
Companies provide customer loyalty programs to their most frequent customers to encourage loyalty and long-term business by offering free merchandise, rewards, coupons, or even advanced released products. It is a great way to bring people back into your product line and keep brand loyalty alive over time. Customers love the idea of receiving free merchandise from sponsors, coupons that they can use at specific places. Also, when ordering online, prizes they can win through contests or even games that release with their favourite brands.
With InsightJet, you can reward customers based on their shopping habits, such as their frequency, the amount they spend, and how often they return to the store. InsightJet puts you in the driver’s seat with a database-based approach to customer management. We work with you to identify repeat customers so you can focus on what matters, creating personalized, real-time campaigns that grow your brand.
There are many types of customer loyalty programs that include:
Points/Punch cards programs give your customers points or stamps in a punched card for things they buy. They can redeem their points for other available benefits.
Cashback loyalty programs reward customers based on earned cashback. These programs give cashback to customers depending on the product or service.
Tier-based programs tie membership to specific milestones. To buy access, you need to shop for a certain number of products within a set time or amount of money.
Spend-based programs reward customer based on the amount spent in a certain period or over a customer’s lifetime.
Premium loyalty programs aren’t for everybody. Paying a membership fee will most likely be too much of a barrier to entry for the average user, but that is precisely the point. Premium loyalty enhances and improves relationships with the targeted customers.
Game programs help enhance the brand’s reputation more entertainingly to promote return sales, improve customer satisfaction, and consider turning your loyalty program into a game application.
Hybrid loyalty programs combine multiple types of rewards. These programs incorporate features from a variety of loyalty campaigns.
InsightJet offers you three kind of loyalty programs among these. We have spend based, Points/Punch card-based and discount based.
So what keeps your customers loyal?
You have got your customers, and you know why they are coming to you. Now it is necessary to keep them. You have to make some moves to keep them coming back. Having a good strategy can help you start this process.
It is essential to retain customers for many reasons, but one of the most important is the loyalty program you developed. You may have heard the saying that to win a customer’s loyalty, you must first win their trust. It requires a good deal of work and preparation to have everything in place to ensure that you are drawing their attention. A perfect retention strategy is to add a unique, different kind of reward for your loyal customers. For example, instead of just giving them good tips, they can earn something out of it, something tangible to show off to their friends and families. It makes the rewards they receive feel more meaningful, and it could lead to gift conversions that are higher than just a reward for loyalty alone.
If you want to get your most loyal customers to engage with your brand, loyalty programs are something you should think about immediately. Brands like Sephora, Amazon Prime, Marriot, Starbucks and several others have considered rewarding their customers with loyalty programs, so why not you?