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. Customer loyalty programs offer several 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.
One of the most important things that your brand needs to see a continuous revenue stream is prioritizing customer retention. One of the primary purposes of customer loyalty programs is increasing customer retention, but that doesn't mean it happens automatically after a loyalty program is launched. Customer retention is earned in many different ways: by building an exciting and beneficial loyalty program experience for your members, delivering valuable rewards or services, showing recognition and appreciation, and more.
Customers who join a loyalty program are more likely to choose that business over competitors when making purchasing decisions because of the additional value they receive after making a purchase. In fact, 65% of a company’s revenue comes from the repeat business of existing customers. Incorporating customer retention tactics will lead to loyal customers who tend to make purchases more frequently and will spend more. This increased recurrence of purchases will in turn contribute to revenue generation for your loyalty program.
Having a well-designed loyalty program can create a positive experience for your customers, which leads to higher customer satisfaction rates. As 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.
When a loyalty program partners with local businesses, it opens up new opportunities to provide exciting rewards and perks to customers of both brands. How it works is that a loyalty program will feature special offers or discounts from partner businesses exclusively to their loyal program members. One common example is how credit card companies will partner with certain hotel brands to offer card customers special room rates. Another example is how transit rail or bus loyalty programs can provide transit riders with special offers or coupons to local businesses on transit routes or stops.
Brand partnerships can be a boon when executed correctly; they have the benefit of helping to raise brand awareness among new consumer audiences while offering more value to existing customers. Partnerships allow you to expand your customer rewards program to include unique or high-value rewards you may not have been able to provide otherwise, which helps to further differentiate your loyalty program. Cross-promotion increases revenue and also promotes a sense of community with other brands in your area. This is a smart and strategic way to bring in additional rewards and perks and show your customers that you are adding more value to your customer loyalty program.
When members sign up for your loyalty program you have the opportunity to collect beneficial information that you can use to improve their user experience and enhance your customer loyalty marketing. Customer data can be utilized to elevate your loyalty program by including more personalized interactions and customization options for the users. Data segmentation can help you organize customers into lists by different attributes and deliver more relevant communications, rewards, and offers.
By targeting your marketing campaigns to customer preferences, you will see more conversion rates that lead to increased revenue. When you understand what resonates with your customers, you can understand what motivates them to click on a specific email or sign up for a specific offer. Getting them engaged in your loyalty program 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 customer engagement that builds long-term customer loyalty. By focusing on tactics that drive customer retention, customer satisfaction, brand partnerships, and customer data, your business can create a cohesive and engaging customer loyalty program that also generates revenue.
Just remember that while it is easy to get caught up in making as much revenue as possible, it’s important to also keep the customer experience at the top of your priority list. If you focus only on money you are less likely to prioritize the customer’s wants and needs, which can lead to more customer churn. Instead, you should strive to find a balance that will accomplish both: retaining satisfied and engaged customers and generating loyalty program revenue.
Want to know how your program can generate more revenue? Reach out to us today!