Did you know it costs 5 times more money to acquire new customers than it does to retain the existing ones and your existing customers would try out half of your new products and spend more than new customers?
Either way, you have a customer loyalty program that encourages your customers to return and purchase more of your services. The above statement clearly shows the importance and impact of a successful customer loyalty program.
Repeat business is essential for helping offline & online businesses survive in today's world. A dedicated program that offers customer loyalty benefits is a great way to say Thank you. It's a treat for your customers but how can your business get benefits from a reward program?
For smaller businesses, money is not always free-flowing. Necessary decisions need to be made about where to plan your investment. Should you attract new customers? Or make sure to retain the existing ones – time and time again? Retention has proved to be more effective in expanding a business, and customer loyalty always proved to be a big part of it.
Why does your business need a Loyalty Program?
In a nutshell, your business needs to have a loyalty program as it plays a vital role in growth. The Chances of selling to an existing customer are 60-70% and reduces down to 5-10% when it comes to new customers. Loyal customers spend 67% more than new ones. You can see that it pays you back when investing in customer loyalty.
A Customer Loyalty program helps in increasing the sales and revenue of your business. It is a proven motivation for customers to choose you over your competitors and attract them back to your business more frequently. A well-planned loyalty program system has a high rate of impact on your business and customer experience.
A loyalty program has several advantages to its members: rewards and gift cards, redeemable points, discount coupons, and registered customers typically spend up to 18% more than others.
Loyalty programs are a better option during a crisis.
Many businesses turned to their client database during the lockdown to pick out their existing and loyal customers and sent them special deals and discounts. Why would they do this? It’s because spending on marketing or advertising to acquire new clients during a crisis is not ideal. The best way to continue the revenue generation is by connecting with your existing customers and engaging them.
Retaining your customers is a plus point but what about the new customers? When you offer points or discounts, you will be able to attract more new customers simply as everybody loves to be rewarded. Moreover, if your loyalty rewards are within reach, customers are more likely to try your services as they would be easy to earn.
The market is emerging after the pandemic and everything is on a fresh start. Small businesses need something of an extra effort to stay open in the times like these and focusing more on your regular clients can prove to be a key to success while implementing new ideas for your business. To help get your business.
Take a look at one of the best Loyalty Reward Programs for Businesses available in the market here: https://rewardsly-dap.zkart.com