Customer loyalty programs are founded on the principle that it is less expensive to keep a current customer than to find a new one.
Discounts, rewards and cashback seem to be excellent ways to achieve this goal. Yet the use of customer loyalty programs should not be limited to airlines, credit card companies and retail firms.
Small businesses can use it too. Here are 4 reasons why you should implement a customer loyalty program:
1: Digital Loyalty Systems Are Effective
Gone are the days when paper-based schemes are used. Only now with technology helping us do so much, the ability to track the effectiveness of such a program has increased greatly. This is done by tracking and storing purchase information in a database.
2: Will increase repeat customers
Clearly, this tactic is considered successful since it encourages customers to spend more and which affect your revenue greatly. Studies show that a repeat customer tends to spend 67 percent more than a new one.
Loyalty programs that are offered by small business tend to cost very less. This increases the likelihood of customers signing up too. A couple of companies such as Belly and Punchcard tend to offer programs that cost less that $100.
4: Established marketing tactic
These loyalty programs have been around for decades. Even the first of its kind, S & H Green Stamps continues in its digital form. Now it is known as S&H Greenpoints. Without a doubt, its benefits are obvious to one and all. Using this technique works more often than not given its longevity as a successful marketing tactic.