Building a solid base of loyal customers is a need, not just a desire for retail success.
And it’s worth the effort.
Walmart, Target, Amazon and all the big retail businesses are obsessed with doing it.
And any other serious retailer should be too.
- Acquiring a new customer is 5 times costlier than keeping a current one.
- Current customers spend 67% more than new ones.
Given that, there is no doubt where the biggest profit is coming from – indeed from your current customers.
However, simply hoping that customers will come back won’t serve the purpose. Also, building a solid base of loyal customers is not that easy.
However, one easy way is to have quality retail loyalty programs, built on a secure and scalable platform – this converts buyers into repeated buyers and lets them buy over and over again, and staying profitable.
In this post, we’ll assess retail loyalty and key features to determine if they’re essential to your business. Know them, and you’ll be able to build the most effective loyalty program for your business.
Retail loyalty programs
Retail loyalty programs are basically ‘rewards programs.’ They are created by individual companies for their customers who make frequent purchases.
The programs are designed in various sizes and shapes. But, the common aspect is that every program entertains customers with exclusive perks or discounts in exchange for buying regularly.
Are retail loyalty programs necessary?
Yes, loyalty programs are necessary for almost every startup and mature business. This is because customer satisfaction goes beyond buying a product and receiving service quality.
Many companies are improving customer lifetime value through individualized offers, smarter loyalty programs, and website optimization.
Here are some noteworthy findings from The Loyalty Report 2017:
- For more than 80% of consumers, loyalty programs make people more likely to continue doing business with brands.
- And 66% revise their spending for maximizing their loyalty benefits.
Therefore, the demand for e-commerce and retail loyalty programs is out there.
Benefits of loyalty programs
Benefits are manifold.
With the best retail loyalty program, you can keep customers engaged with your business. Today’s customers make their purchase decisions based on engagement, shared values, and offers. Loyalty programs help you provide customers these facilities and keep them happy with you.
Customer referrals result in new customers coming to buy your products or services. Loyalty programs are an excellent way for customer referrals.
When your customer enjoys the benefits of the program, he or she will tell their friends and family about it. This will give you more trusted form of advertising.
Retaining happy customers is more cost-effective than consistently churning and acquiring new ones. Loyalty programs entertain and engage your customers, thereby retaining them.
Customer loyalty programs incentivize reviews and ratings on websites. Social media will come up with lots of trustworthy customers as friends and customers tend to give positive reviews and feedback online if they like something.
Do you have a retail loyalty program for your retail business? If so, share your experience in the comments below how it’s working out for you.