Do you want to increase the revenue of your business? How would you feel about increasing the amount repeat customers spend instead of trying to continuously attract new customers? Have you thought about starting a loyalty program?
As you’ll see, loyalty programs have been proven to keep current customers coming back and improving business revenue. Plus, having a snazzy loyalty card for your customers to carry around is a great chance to do a little extra advertising, you can check out our’s here.
If you’re on the fence about starting a loyalty program for your business, this article is for you.
Here are some stats found from a study conducted by Social Annex.
Growing Pains
Spending your time acquiring new customers can be expensive and not necessarily worth your time. Think about the time and resources needed to go into gaining new customers, inbound and outbound marketing teams, the salaries to pay those team members, the advertising cost of social media, and the list goes on. All of that just to impress the “I’m just looking” crowd.
Here are some facts:
- It costs 500% more to acquire new customers than it does to keep current ones
- 82% of companies agree that retention is cheaper to execute than acquisition
So why not spend more time and energy into customers who have already proven they like your product. Those that have spent actual money with your business.
Show a Little Love
Give those that buy from you a ‘Hey, we noticed you bought something let us reward you’… This kinda love is how you turn customers into loyalty members of your brand and product.
Try these on for size:
- 87% of shoppers say they want loyalty programs
- 23% of shoppers said that their loyalty to a company has increased over the past year
because of a loyalty program
The top two benefits that motivate consumers to join a loyalty program are:
- the ability to earn points/miles on purchases (56%)
- and the offer of discounts on purchases (55%)
Offering your customers rewards for making purchases is a great start. I don’t know how many shoe stores people pay the rent for just to earn points towards free pairs. But there is more to building your brand and customer retention than free shoes… it’s building relationships.
Building Relationships
Do you think that a customer who receives a bad experience in your store will come back and buy from you (or that salesman) again? Even if she has a loyalty card? What is keeping her from signing up next door for their loyalty program and shopping there? I’ll go ahead and spoil the joke…The experience that you provide while she’s in your store.
Think about this:
- 76% of US shoppers think that loyalty programs are part of their relationships with businesses
- More than 50% of shoppers say they would pay a higher price for the customer experiences they value most
- and 77% would be more loyal to stores that provide their personal top three customer experiences
- Lowering your customer churn rate by 5% can increase your profitability by 25-125%.
A happy customer with a reward card in hand can prove to be a profitable tool for your business.
Return on Your Investment
Repeat customers means repeat purchases and that can mean a growth in your revenue. Businesses who implement a loyalty program and also spend the time training their staff to provide a memorable experience for their customers see results. Repeat customers means repeat purchases and that well…
Let’s see the numbers:
- 75% of US companies with loyalty programs generate a positive return on investment
- 64% of retailers say that their loyalty program is their best method of connecting with customers
- Loyalty programs increase overall revenue by 5-10%
- Loyalty program members buy 5-20% more frequently than non-members
These facts show that loyal customers are where it’s at. Stop maxing out your ad budget trying to win the next customer. Visit ID Source and see how easy and affordable it is to start making your current customers happy.
Wondering what type of scanner to use for your rewards card? Get some ideas from this article.