There is high increase in the number of businesses that are striving hard to get customers on board in the loyalty train. Yes, as per the study by Harvard Business Review, on an average a business happens to lose about 50% customers over the span of 5 years. Hence, now it is easy to relate as to why customer loyalty is inevitable.
Brand loyalty is no rocket science, but it isn’t a cake walk either. It is a three-tier approach based on interaction, trust and commitment. It primarily is real time efforts made by an organization to mold customer experiences in such a way that they never think about changing their brand preferences.
The crux of customer loyalty is to retain customers and add new ones using the same goodwill. This is where customer loyalty programs come into picture. However, to easily increase repeat sales and maintain a good customer base, here is all that you need to know about customer loyalty programs.
Reason Why Loyalty Programs Work –
Today, the market is overflown with a variety of loyalty programs, but the truth is that not all of them have the ability to keep customers happy and indirectly encourage higher purchases. Successful loyalty programs are the ones that work based on the theme of incentives. Best loyalty programs are designed to give customers a concrete reason to participate in sales repeatedly.
To keep customers on their toes in the loyalty program, they should not just find value but also should find the reward to be worth their time and money.
Various Types of Loyalty Programs
Loyalty programs are made available in all shapes and sizes. Yes, they can be easily customized in order to fit well with your business needs. Below mentioned are the most common and popular loyalty program categories –
- Loyalty Cards
- Tier System
- Points Systems
- Cash-back rewards
When is the right time to invest in Loyalty programs?
We’ve simplified this step for you. There is no specific time to set up a loyalty program. However, there are a few advantages of launching them before the opening. A grand opening celebration can certainly create buzz and a lot of foot traffic as well. This is a perfect opportunity to convince customers for a sign up.
Well, there have been a lot of cases where businesses have set up loyalty programs post the launch of their business and have worked well. So, ideally speaking there is not set time, but earlier the better.
There are dozens of benefits associated with loyalty programs, and hence it is wise to incorporate them in the marketing strategy. And to make the concept clear we hope we have been of value.