4 Ways to Ensure Your Program is Generating Revenue

After you go through the whole process of getting approval to launch a loyalty program and then putting in the work to launch one, the last thing you want is to not see an increase in revenue. Loyalty programs offer a number of benefits to not only the customers but also the brands. In this day and age, building customer loyalty is crucial to creating a devoted customer base with long-lasting relationships while also driving revenue. Loyalty programs create a bridge between members and their favorite brands. We have put together 4 things to keep at the top of your priority list to ensure you are getting the most out of your loyalty program. 

1. Increase Customer Retention

One of the most important things that your brand needs to focus on to see a continuous revenue stream is customer retention. Customer retention is earned through building an exciting and beneficial experience for your members. This leads to loyal customers who tend to make purchases more frequently and will spend more because they know that there is something in it for them when they make a purchase. Customers who are part of a loyalty program are more likely to choose that business over competitors when making purchasing decisions. In fact, 65% of a company’s revenue comes from the repeat business of existing customers. This increased recurrence of purchases will contribute to revenue generation. 

2. Increase Customer Satisfaction 

Having a well-designed loyalty program can create a positive experience for your customers, which in turn can lead to higher customer satisfaction rates. Like we mentioned before, satisfied customers are more likely to make repeat purchases and recommend your business to others which leads to increased sales and revenue. A survey found that 63% of respondents agree they are more likely to do business with brands/companies whose purpose aligns with their values. If your customers know that when they shop with your brand they will have a positive experience, you will become their go-to brand which will lead to more sales. 

3. Utilize Partnerships Opportunities

When a loyalty program partners with local businesses, it offers exciting rewards and opportunities towards customers of both brands. This helps get your name out there to people who may not be familiar with your brand but will come in with a sense of trust because they trust the brand you have partnered with. This partnership allows joint rewards or exclusive discounts to loyal program members. Partnerships can also allow you to expand your rewards program and offer certain rewards you may not have been able to provide otherwise. Cross-promotion not only increases revenue but also promotes a sense of community with other brands in your area.  This is a smart and strategic way to not only bring in additional rewards and perks but also show your customers that with this partnership you are adding more value to your program than your competition.

4. Gather and Utilize Data 

When members sign up for your program they are giving you beneficial information that you can use to make their experience more personal and can help you better serve them as a program. Customer data should be analyzed in order to take your program to the next level. Data segmentation will help you put your customers' traits into lists to better organize them and then be used to cater to your customers through more personalized and relevant communication and rewards. By targeting your marketing campaigns to the preferences of your customers you will see more conversion rates that will lead to increased revenue. When you are able to see what your customers want to see you can learn what makes them click on a specific email or what makes them sign up for a sweepstakes. Getting them engaged as much as possible will lead to more customer engagement and buying opportunities. 

Loyalty programs are a great tool for generating revenue and increasing overall engagement with your plan. By focusing on these 4 tactics, your business can create a cohesive and engaging program for generating loyalty and revenue. While it is easy to get caught up in trying to make as much revenue as possible, it’s important to remember to keep your customer’s experience at the top of your priority list. If you get caught up in the money aspect then you are less likely to be focusing on the customer’s wants and needs which can lead to more customer churn. Balancing both the customer experience and revenue will lead to satisfied and engaged customers while also generating revenue! 

Want to know how your program can generate more revenue? Reach out to us today!