Loyalty Programs Make Good Business Sense
By: Erica Mason
Loyalty programs have always been thought of as a wonderful way to draw customers in and retain them. This is true, but the loyalty programs of today aren’t just punch cards and dollar driven rewards. Modern loyalty programs are a treasured marketing tool that turns your customers into brand ambassadors and providers of valuable analytics.
Modern loyalty programs are personalized, and this adds a new dimension to the savings experience. Customers can feel a special connection to a brand by the way the program is delivered. Customizing promotions during special occasions or offering deals that target certain customers will increase a bond with the business. This direct way in communication with customers can also be useful in promoting sales, events and introducing new products.
While communication is a huge part of the new loyalty program, businesses also have the ability to gain a better understanding of their customer segments. It isn’t efficient or profitable to cater to the customers that cost more money than they provide. A loyalty program that is designed to segment customers and give businesses an understanding of who is a profitable customer and who isn’t, can assist a business in generating money. Program data can help track the buying habits and preferences, giving a business a huge wake up call on what customers are investing their money in, their repeat rate and purchase frequency. Rewarding the customers that are most profitable is the easiest way to generate the most profit. It is often the case that it is less expensive to retain customers than attracting new customers.
A loyalty program is a win-win for businesses and customers. Customers get discounts and special offers that make them feel important as well as help their wallets, businesses build revenue when they build brand loyalty. A modern day loyalty program is a marketing answer to many business building needs.648 VIEWS