Customer loyalty programs are a business strategy that keeps customers returning. Numerous customers visit your business profiles, but returning and loyal customers are the ones who increase sales and profits. It has been found that 80% of the sales come from 20% of the return and loyal customers. That’s the reason customers’ loyalty programs matter the most in the business.
These loyalty programs are a very effective means of retaining customers. In the competitive market, if the returning customers’ ratio is greater than the new customers, means your business is growing towards positive directions. So, if you haven’t set up the loyalty programs in your business means you are missing out on huge business. In this blog, we will tell you the importance of customer loyalty programs that can take your business to the next level.
Statistics and Trend of Customer Loyalty Programs
- 61% of the retailers’ sites are struggling hard to achieve customer retention, and that only comes from customer loyalty programs.
- 58% of customers buy the products from the store whose customer loyalty programs are the best.
- a 5% increase in customer loyalty will increase by 25% sales of the business. ‘
- 64% of the retailers say their loyalty/ rewards program is the best way to connect with customers.
- 44% of millennials say they are loyal to brands they buy, and 52% will choose quality over the piece.
- 55% of millennials purchase products from the company whose loyalty programs are the best.
After reading these statistics, you have understood how much loyalty programs are important in business. Now we are going to tell you the current landscape of the loyalty programs that can increase your credibility and lead in the market.
The Current Landscape of The Loyalty Programs
Website: Whether you are running a small or a large business, you should have a website that offers authentic information about your business profile, products and services, and terms and conditions. People get to know about your business, the second thing they do is search online. If you have a user-friendly, responsive, and engaging site, visitors will get in touch with you. Having a website that describes your business profile is one of the best landscapes of customer loyalty programs.
Social media presence: Nowadays, if you have a great social media presence, you can easily get the attention of the users. When you share the latest tips, benefits, and uses on your products and services, people will love it and share it on other social media platforms. For example, if you launch a product that is completely new in the market, if you share the uses, benefits, and features and make explainer videos on it, the chances of the popularity of the new product will become higher.
App: App is another important customer loyalty program that not only enables visitors to purchase the products hassle-free but also defines your authenticity. If you offer easy to navigate buying products, it will show that you are thinking about the customers’ experience, and that thing generates a good impression in front of new users. If you can provide quality based products and effective services to your new customers, they will return when they need your products. Always keep in mind if you are getting a response from the returning visitors then your business is doing great in the market.
Store: Along with the online presence, the small businesses should have an offline presence too. Your store must be in a good location; your employees should greet your customers attentively. These small things will help you in building trust and credibility in the market.
Benefits of Customers’ Loyalty Programs
Below we have mentioned the top benefits of customers’ loyalty programs:
Increase sales: One of the significant benefits of having customer loyalty programs is that it increases sales. If everything is implemented correctly, the customer loyalty program can generate sales of 30% itself. So, companies need an accurate way to implement loyalty programs if they want to generate leads.
Build a Healthy Relationship with the Customers
Over the years, the loyalty programs have transformed the professional relationship into emotional and healthy customers’ relationships. Many companies have an overlaid loyalty program in the customer relationship management system to offer highly personalized rewards.
Improve Brand Perception
The data collected through loyalty programs are extremely valuable. You will know about your customers personally, like (demographic, product preference, purchase preference, and so forth). There is no doubt that customer loyalty programs work as a gold mine in today’s competitive world, which can take your business to the next level.
We hope this comprehensive guide on customer loyalty programs helps you. If you are looking for a company that will help you in building loyalty programs, you can get in touch with PRMMS Singapore to know more.