Find out how you can increase loyalty, grow your business and get more customers with a customer loyalty scheme.
If you're not taking advantage of customer loyalty schemes, you're missing out on a big opportunity to increase your bottom line. With up to 75% of customers saying that they are more likely to have a repeat purchase where there are incentives, it's clear that customer loyalty schemes work.
Not only do they encourage customers to keep coming back, but they also help to attract new ones. This is because your existing customers can act as brand ambassadors, singing your praises to their friends and family.
So, if you're not already using customer loyalty schemes, now is the time to start. You could see a significant increase in your profits as a result. What's not to love about that? Here are some benefits of customer loyalty schemes and how they can help you boost sales and revenue.
Increased Sales and Revenue
As we mentioned earlier, up to 75% of customers are more likely to have repeat purchases when offered incentives. This means that if you're not using customer loyalty schemes, you're missing out on a lot of potential sales and revenue.
Loyal customers are worth the effort as they are more likely to spend more money than new ones. This is because they feel like they're getting a good deal, and they trust that the brand will deliver on its promises.
Increased Customer Engagement
Customer loyalty schemes are a great way to increase customer engagement. This is because they encourage customers to interact with your brand in several ways, such as through social media or reviews.
For instance, airlines are some of the largest investors in loyalty schemes. They often ask customers to vote for their favorite designs on new planes or even offer the chance to name a plane. This helps create a sense of community around the brand and encourages customers to stay engaged with it.
Improved Customer Retention
It's important to remember that it costs more to attract a new customer than to keep an existing one. This makes customer loyalty schemes a very cost-effective way to improve your bottom line.
For instance, if you have a customer who spends $100 with you each month, it's worth your while to keep them happy. But if you can get them to spend just $20 more each month, that's an extra $240 per year, which makes customer loyalty schemes a no-brainer.
Can Contribute to Your Analytics Pool
Customer loyalty schemes can also provide valuable insights that can help you to improve your business. This is because they offer a wealth of data that can be used to understand customer behavior and preferences.
Such information includes what customers are buying, how often they're buying it, and what motivates them to make a purchase. This can be extremely valuable for developing marketing strategies or even new products.
Allows You to Target a Specific Group
If you're looking to target a specific group of customers, customer loyalty schemes are the perfect way to do it. You can segment your customers into different groups based on their behavior.
For instance, you could create a scheme that rewards customers who refer their friends to your business. This is a great way to increase word-of-mouth marketing and attract new customers.
Companies that need more youthful customers can also use loyalty schemes to target a specific age group. This could involve offering discounts or special deals to customers within a specific age range.
Challenges of Loyalty Schemes
Many businesses are reluctant to invest in customer loyalty schemes because they're worried about the challenges involved. Here are some of the most common challenges and how to overcome them.
One of the biggest concerns for businesses is the cost of customer loyalty schemes. However, it's important to remember that these schemes can save you money in the long run by increasing sales and retaining customers. With proper planning, you can create an affordable and profitable scheme.
The Time it Takes to Set Up
Another common challenge is the time it takes to set up a loyalty scheme. However, there are several different platforms that make setting up a scheme easy and fast. You just need to find one that suits your needs.
The Difficulty in Measuring Success
Measuring the success of a loyalty scheme can be difficult, but there are different ways to do it. This includes measuring the amount of money customers are spending, the number of referrals they're making, or the length of time they've been a customer.
Lack of Engagement
A common challenge for businesses is getting customers to participate in their loyalty scheme. However, there are some ways to overcome this, such as offering highly valued rewards by customers or making the scheme easy to use. For instance, students might be more likely to sign up for a loyalty scheme if it offers discounts on food and drink.
Long Waiting Periods
In many instances, customers have to wait long to receive their rewards. This can be frustrating for customers and lead them to abandon the scheme altogether. To avoid this, you should ensure that rewards are given out promptly. The sooner your customers experience the benefits of your scheme, the more likely they are to stay enrolled.
Another common challenge is making the process of redeeming rewards too complicated. This can be a major turn-off for customers and make them less likely to participate in the scheme. To avoid this, have a simple and easy process.
The Role of Digital Marketing in Successful Customer Loyalty Schemes
Digital marketing is a vital part of any successful customer loyalty scheme. It allows you to reach a large number of customers quickly and easily.
There are many digital marketing channels that you can use, including email marketing, social media, and paid advertising. These channels allow you to target specific customers based on their interests and behavior.
At emaginemore, we can help make your rewards scheme visible and engaging to customers. Using our digital marketing expertise, we will ensure that your customers know your scheme and the benefits it offers. We will also help you to overcome any challenges that you're facing. Contact us today to learn more about how we can help you get the most out of your loyalty scheme.