Bonus Points: Why Loyalty Programs Work
Its 2019, and to say that the consumer world is becoming steadily self-aware would be an understatement: not only are people aware of their influence on a business, but also expect good treatment in return. Simply put – if people stay loyal to a business, they expect to be appreciated.
And that’s where loyalty programs come into play: schemes made to reward customers for sticking with their company time and time again. Loyalty can be measured in terms of points or some other metric, while rewards are given in the form of discounts, exclusive offers, gifts and more.
Although the overall composition may change, the gift remains the same: to reward loyal customers. But why exactly is it so popular? Let’s see why loyalty programs work so well for businesses:
Gather Valuable Data
Since modern consumers enjoy a personalised journey through a store, you need all the information you can get. Fortunately, loyalty programs work by logging in customer data like name, email, date of birth, preferences and more. This automatic collection of data makes the entire process quick and easy, and that’s not the only benefit. Such data allow you to make more targeted marketing campaigns, more convincing offers and overall more impactful business decisions.
Strengthen Bond With Existing Customers
Nobody forgets a gift they get from someone – so when you reward your loyal customers, you’re automatically strengthening your bond with them. Customers feel appreciated when they are given a reward after a purchase, making them even more willing to shop at your store. So, as a result of strengthening the business-customer relationship, you’re also increasing customer retention rates.
Attract New Customers
Who says loyalty programs work for existing customers only? In fact, they help attract more people; loyal customers recommend your premises to their friends, without even needing a referral program, simply because your reputation is boosted. On another hand, some outsiders will gravitate towards your brand because they’re interested in discounts you offer some customers. The ways loyalty programs can reign in new people are endless!
More Ammo Against Competitors
In the business world, you’re always met with some form of competition; and when you’re the smaller business, you get the smaller end of the stick, simply because your price tag is not the most extravagant.
But who said that’s the only way you can compete? Loyalty programs give businesses the upper edge by enhancing the overall customer experience. When you reward customers for simply choosing you, you appeal to their emotional side. That way, you leave a greater impression, and customers will want to return for more. You will automatically stand out from the crowd.
It Can Grow With Your Business
This is pretty self-explanatory: since loyalty programs reign in new customers, they are inevitably increasing sales as well. In fact, loyalty programs impact every sale-making channel: for example, loyalty programs improve marketing techniques, while simultaneously helping you sell more popular products among consumers.
And the best part is this: loyalty programs aren’t static. Although they are pretty self-sufficient on their own, they can change as per your requirements; for example, you can easily incorporate different marketing tactics like referral schemes. That way, you’re basically allowing your loyalty program to grow with your business.
One such loyalty program software in Pakistan is the one offered by Oscar POS, that rewards customers on the basis of points. These points help measure customer engagement more accurately, allowing you to emotionally connect with your customers easily.
Although loyalty programs need some planning and more than a few trial-and-errors, there’s no reason your business wouldn’t need one. No matter how big or small your presence may be, you deserve to reap the benefits of a good loyalty program.