Separate Your Business From the Competition With Meaningful Loyalty Programs

Loyal customers are repeat customers and it is easier, cheaper, and more effective to keep a current customer than it is to acquire a new one. Unfortunately, businesses with a growth focus tend to spend most of their money and time acquiring new customers. By overlooking their existing customer base, they are ignoring their best source of growth. Developing a program that inspires customer loyalty will set a business apart from and ahead of its competition.

The Importance of Loyalty Programs

Never underestimate the value of a loyal customer. After ending a business relationship with one company, 61 percent of consumers begin patronizing one of its competitors. On a global scale, a lost customer has an average value of $243. Though it can cost seven times more to acquire a new customer, many companies focus on customer acquisition rather than on customer retention. In one recent poll, 63 percent of marketers believed that the most important goal of advertising was acquiring new customers.

Companies that shift their focus to making existing customers more loyal will save time and money. Improving customer service is one way to do this, as 71 percent of consumers end a business relationship due to poor customer service. Quick response time and helpful answers are just part of good customer service. A program that inspires loyalty is a value-added benefit of doing business with a company.

Types of Loyalty Programs

A program that encourages repeat shopping should have rules that are easy to understand. Whether the system involves redemption of points, rewards for frequency of shopping, or rebates, its rules should be simple and clear. Customers should not need previous experience or knowledge of legal terms in order to understand how the program works.

This program should also be convenient to use, making key tags and credit card-sized loyalty cards popular choices. Customers can carry these tags on key chains or in wallets to make redemption easy. In fact, customers should not even think of these cards until they are on their way to the establishment. There should be no need to take a brochure, letter, or flyer to access the special offers.

Business Benefits of Loyalty Programs

When a company uses a program to inspire loyalty amongst customers, repeat business is just one of many benefits. Each credit card or key tag loyalty card serves as free advertising for the company. Everyone who sees the card will realize that the business values its customers. When a professional designs this card, the results will be even more impressive. New customers will choose the business over its competition because they know that loyalty rewards are available.

Magnetic stripes, bar codes, and smart card technology allow businesses to make these cards more convenient for customers to use. This may result in an increased frequency of repeat business. A single card can even be used as both a gift card and loyalty card, quickly converting new customers to returning patrons. These benefits alone should encourage any business to create a program that inspires customer loyalty.

Online River offers small and large business customer rewards solution to help them not only retain their current customer base, but also attract new customers from competitors. For more information regarding these programs as well as other business solutions, click here to visit our website: Hestia Olsztyn

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