6 Benefits of Customer Loyalty Programs
Mar 2, 2023
Everybody loves getting new business – it’s exciting! Because new customers are so crucial to growing a business, many companies pour the majority of their marketing time and energy into generating more new business. But this strategy neglects a part of your customer base that’s equally important: existing customers.
Did you know that studies have found it’s at least six times more expensive for new businesses to acquire new customers than to keep the ones they already have? That’s why investing in enticing and keeping your current customers is so important. One way to get your customers jazzed about your company and keep them coming back is through customer loyalty programs.
Customer loyalty programs are all about rewarding your return clients for engaging with your brand repeatedly. Typically, loyalty programs allow customers to rack up points for purchases that they can then redeem for promotional gifts or prizes. Here are six reasons you should start a customer loyalty reward program:
1. Repeat Business
The number one benefit to customer loyalty programs is repeated business. To put it simply, these programs encourage your customers to come back time and time again to keep spending their hard-earned money on your business. Customers who already trust your brand are likely to spend more and keep patronizing your business.
2. Saves You Money
Generating new business costs significantly more than retaining the business you already have. Customer loyalty programs are a small cost that helps you to keep your clients loyal to your brand.
3. Customers Love It!
Loyalty programs make your customers feel like they have a connection to your brand and incentivize them to continue visiting you. Plus, who doesn’t love winning points and prizes? That’s what we thought!
4. Increase Your Sales
As we said earlier, customers who are already familiar with your company and trust your brand are statistically likely to spend more money than new customers. They already know that you provide quality goods or services, and they want to see that they’re getting the best every time. By incentivizing your customers to keep buying from your business, you’re continuing to build that trust, which boosts your sales.
5. Increased Communication with Customers
Loyalty programs give you a direct line to your best customers. This allows you to communicate quickly about sales and promotions, showcase new products or services, survey your customers to find out what they love about your business, and more.
6. Attract New Customers
Good rewards programs can even help you attract new customers! If you offer points for signing up, new customers will be encouraged to join the rewards program, which helps convert them into repeat customers. This also allows you to add new and potential new customers to your email lists so that you can market to them. Plus, people love freebies!
Customer loyalty programs are an easy way to inspire repeat purchases from your customer base. With promotional products in your corner, they’ll be trying to get as many points as possible to win fantastic prizes! To learn more about how promotional products can help boost your customer loyalty, contact us today.