According to Invesp, 69% of consumers say store preference is affected by where they can earn customer loyalty/rewards program points whereas 57.4% of customers join loyalty programs to save money, 37.5% to collect rewards according to invespcro Of course, the type of loyalty programs will generate wildly different outcomes, but, you can never neglect the fact that loyalty programs have been tested time and time again and have proven to be effective in many industries.

Cost

When some advertisers think about loyalty programs, they start to believe that a significant portion of current resources are fed away into an idea that may or may not see success. However, the true cost burden is to pursue new customers; an article in Forbes in February 2013 notes that retaining an existing customer is 7 times less costly than attracting a new one. In contrast to the cost of attracting new customers, all the resources you use in a reward program would most likely pale. In addition, the small costs you incur by introducing a loyalty rewards program can be overshadowed by the increased business created as a result, depending on the nature of your rewards program.

Public Opinion

Loyalty programs serve a dual function: to inspire new customers to hang around after your products and services are purchased and to ensure that current loyal customers still feel appreciated by your operation. Of course, you not only boost consumer appreciation of your business by establishing a loyalty program, but you also increase the likelihood that current customers will share this pleasure with others close to them. The more a client feels valued by a company, the more likely he or she is to help the business and recommend it to others. This, in turn, takes place in a cyclical word-of-mouth nature that continues to achieve growth for your brand.

Increasing Sales

Business owners love loyalty programs because they have the capacity to boost customer retention. However, consumers enjoy loyalty programs because they also offer extra benefits to make a purchase, with further transactions linearly (or even exponentially) increasing the rewards, or depending on the size or scope of the item purchased. Because of this, in your marketing campaign, using a loyalty rewards program would help give you access to a greater portion of the wallets of your customers. However, this can only happen if the rewards you give are in line with the desires and needs of the customers who visit your business. It is necessary to point out that not all loyalty rewards systems are the same, and the desired result can only be one that is executed skillfully. Your rewards program will entice clients to buy more at a given time, but only if it is worth the benefits you offer out.

Making Customers Happy

Of course, the advantages you provide through your loyalty rewards program do not have any bearing on the products or services you offer to your clients every day. That said, the effort to provide your most loyal customers with additional incentives separates your company from other, non-participating businesses. You are sending a message to your existing and potential client base by introducing a loyalty rewards program that you are involved in not only making money off sales but also in a mutually beneficial partnership with consumers. While you offer incentives exclusively for the benefit of the client, you sell goods and services. This act of goodwill will boost your customers ' overall outlook, which will ultimately have a positive effect on your business.

Works On Its Own

In reality, it can take some real effort on your part to set up a rewards system. It needs initial research on your clients' tastes, as well as the scheme that you would like to introduce in the future. That being said, because of its cyclical nature, once you have a rewards program set up, it essentially becomes a self-sustaining machine: the more a consumer spends, the more rewards he or she gets, thereby encouraging him or her to continue buying. Continuously updating the incentives will keep your clients interested, but the job it takes to do this will be overshadowed by the growth experienced by your company.

It's no longer a secret that loyalty programs are efficient marketing methods. They increase growth, help retain clients, and enhance the credibility of your brand. And if you haven't weaved a loyalty program into your marketing plan yet, you may be missing out on one of the best and easiest resources available for your company's success. So go to craspa.com to find out more about how you can keep your customers coming back.