Posted: August 2022
First, let’s define what a loyalty program is: a loyalty program is a store or business’s rewards system that incentivizes customers from purchases. The rewards vary from discounts, freebies, and other offers.
When executed right, such has become a proven tool to help businesses grow. It shows that giving something back, even in bits and pieces, is beneficial in the long run.
Why? How? There’s a handful of aspects. Let’s get into it.
It’s a must to keep finding new customers, but it’s just as important to retain the repeat buyers – the loyal ones who have a ‘connection’ to your goods/services. They help keep the ball rolling, but you’ll only get so much if they feel like you’re not valuing them in return.
Customers can always find a different store, and they’re always trying to because of rates. You can’t offer the best price all the time, but you can sweeten the pot with some exclusive offers.
Attracting new customers through a loyalty program can be a wildcard, but allow us to explain why in the end, you’ll still get something significant.
The good is that it can gather every store’s favorite type of shopper: the impulsive, who will buy for the sake of receiving perks. It doesn’t hurt to get visibility from such. The ‘bad,’ meanwhile, is that it will also gather a fair share of mildly curious shoppers, who are just there to check things out and are not particularly interested in anything. That can drag the program’s analytics down even though it is actually doing well overall.
Then again, leads are leads. The next item will expound further.
Wider Mailing list
While you can always collect information without a loyalty program, it ultimately wouldn’t compare. You would also be hard-pressed to convince anyone to provide an email address without an incentive – newsletters and such wouldn’t have the same impact.
By adding rewards, interest will spike up and customers will be more than inclined to give information. You’ll be able to identify repeat customers too, which then helps you cater to their needs better. Even if most decide to not purchase anything, you at least add leads to your mailing list that can be used for future promotions.
Investing in your customers can work wonders, especially if you study the market and plan your loyalty program well. Customers can save money from the rewards, but because they become inclined to come back for more with all the discounts and offers, you are then likely to get more purchases. Before you know it, all have been offset.
Also, who’s to say they won’t refer you to their friends and family? Satisfied shoppers are happy to get the word out for you.
Better brand reputation
Rewards go a long way because loyalty programs speak volumes to what you are as a business. For one, it means that you are not just about inhaling all the money you can get your nose on. It shows that you know how to treat repeat customers and nurture future ones, or that you fully understand the dynamic between a business and a consumer – that anyone can get small wins, like 10% discounts and/or free shipping privileges, as long as they keep coming back.
IN CONCLUSION: A floor and ceiling raiser
Whether you’re a successful enterprise or a startup small-time business, a well-planned and executed loyalty program can take things to a new level. It captures the attention of both loyal and first-time shoppers simply because they get something beyond their actual purchase.
As VeritasPay continues to provide high-quality payment solutions and promote cashless transactions, the company is also dedicated in bringing in fresh and informative content. We’ll be continuing to share new articles about our products, services, and varying subjects within the industry as we move forward.
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