Four Reasons to Have Loyalty Program to Retain Customers
A business can be successful only with repeat customers. Study reveals that repeat customers spend 67% more than the newer customers. Loyalty program is one such tool that helps in bringing back the customers. More than 55% of top retailers have a loyalty program. About 95% of people who enrolled in loyalty programs said that they will continue using the program in future.
Customer loyalty can be encouraged when a user visits the site, refer product on social media, or buys any product. The buyer behavior can be analyzed to provide the loyalty benefits. It is revealed that 46% of the customers change their buying habits to get the most out of the loyalty programs.
Some of the main reasons for why your ecommerce store needs a loyalty program are discussed below:
#1 Create brand loyalty
Loyalty can create brand name. People will start recognizing your brands when interesting loyalty programs are announced. Loyalty helps to stand apart in the crowd (from other competitors) such that people return back to the service. People will believe more in the brands rather than newbies. This attitude will encourage the people to believe in loyalty program and checkout with established stores.
#2 Encourage referrals
A satisfied customer is likely to recommend the product to another user. The loyalty program encourages the customers to refer more customers, which can be useful for both customer and the company. The customer can earn income via referrals while the company can increase their customer base.
The reward programs provides points to the customer when they visit websites, refer products through social media, or make purchases. These kind of loyalty can keep the customer engaged. Loyalty allows the customer to return back for the service again and again. 55% of top retailers have a loyalty program.
#3 Increase customer spending
Loyalty programs motivate the customers to spend more. The various loyalty solutions such as point based or tier system makes it simple for the user to make a repeat purchase in the same store to get eligible for loyalty.
#4 Personalized service
The loyalty program allows to store the demographic details of the customer. The company can provide customized service to their customers, which keeps the environment to be user friendly. The company can also monitor the purchases done by the user and suggest items that he would like to purchase on next visit. Personalized service keeps the customer happy to return back for more purchases in the same store. The more customer spends, the more customized and effective service the company can provide.