One of today’s popular marketing schemes or strategies that stores carry out are loyalty programs or membership cards. Some stores or companies make partnerships with banks to create a credit or debit card that gives loyal customers discounted rates. Loyalty programs give different kinds of benefits to their consumers and the companies as well.
Customers Will Feel Appreciated
Customers will feel that their loyalty is valued. They are more likely to stay loyal or more patient with any mishaps that can happen in your store. And because of the discounts and rewards, customers will feel that they’re getting their money’s worth.
Gather Customer Data
As customers sign for loyalty programs, companies will be able to gather relevant information. That information can be used for a more personalized approach in offering promotions and rewards. The store or company will be more aware of their customers’ preferences and buying habits.
Increase In Sales and Revenue
Implementing a loyalty program will encourage customer retention. It will increase revenue because loyal customers already trust your store or brand and will likely spend more to avail rewards. And by having a more personalized approach because of the gathered data, the store can make better suggestions that will likely make the customer buy more products. You will also gain new customer that will eventually become loyal customers.
Because of loyalty programs, stores, or companies can measure their customer’s loyalty. They can use this data by profiling who are the high priority customers. Some companies even have a hierarchy of their reward system. For instance, as a customer buy more products, they will get more reward points, and they will climb up the ladder of the store’s loyalty hierarchy program. And as the customer progresses to a higher status, they will enjoy more perks and discounts.
Stores or companies now have the opportunity to communicate with customers directly. It’s now easier for stores to send out emails or message alerts to announce new products, weekend sales, special offers or events. And this information will also be highly appreciated by customers.
A good loyalty program can attract new customers. Stores often give discounts or rewards for new customers to sign up to their loyalty program. If customers are happy with the program, they become one of the store’s loyal customers. Also, when stores have comprehensive loyalty programs, and current loyal customers are happy with it, they tend to tell their friends and families about it, which will which will also attract new customers.