Customer loyalty programs have been associated with businesses like retail stores, airlines and coffees shops for years. Initially, these cards were available in tangible forms like a plastic card. But progress in device proliferation has encouraged consumers to move towards digitization and now most of the businesses make loyalty programs hassle-free by getting the membership details available directly on computer screens. With this, consumers can easily add or redeem points even if they don’t have the hard copy of their loyalty cards.
As the scope of reward programs is shifting with advances in technology, more and more companies are coming up with excellent schemes, with an aim to retain old customers and easily acquire new ones. Well, this was the commercial side of the story. Now it’s time to understand why consumers actively participate in Loyalty programs. Many consumers join loyalty programs to enjoy additional discounts and receive a few privileges. Well, this is just an overview. There is lots more to this.
Let’s explore the reasons that drive customers towards loyalty programs.
Reason #1 – Savings
Savings is the primary reason that draws people to participate in loyalty programs. The basic fundamental of consumers signing up for loyalty programs boils down to receiving discounts or consistent offers that can eventually be redeemed for free products.
Reason #2 – More than Cards
It may sound weird, but surveys prove that more and more customers want to participate in loyalty programs that offer smartphone apps. This is an indication that customers are not only looking for monetary benefits but also need ease at accessing their loyalty points.
Reason #3 – Updates
When consumers enroll for loyalty programs they are noted in the database and hence receive various notifications, either via email or SMS. Companies maintain a good interaction and rapport with consumers by sharing these details. Personalized messages do make a difference.
A lot of customers (especially shopaholics) feel overwhelmed when they have information about the ongoing offers, new arrivals and more on a continuous basis.
Reason #4 – Hassle Free
Enrolling for a loyalty program is as simple as filling up a short form. All you need to do is fill basic details like name, phone number, email ID, date of birth and taa daa, you are done. Consumers, enjoy the simplicity of the enrollment procedure, and if the membership is free there is nothing better than that.
Customer loyalty programs have secured an important place in the market. Now loyalty programs are an integral part of the marketing strategy beyond retail and coffee shops. Highly accepted in the market, loyalty programs have evolved and become a part of almost every business one can think about.