Nowadays so many companies in Singapore are using loyalty programs than they used in the earlier years. These companies understand the benefits of retaining the existing customers that they have that is they decide to use a system that is meant to build customer loyalty.
A loyalty program refers to a marketing system that is implemented by the business so that it rewards the customer when he/she buys from the company; this will, in turn, increase the urge of the customer so that he/she can be loyal to the company. With the loyalty program, you can be given prizes, store credit, convenience and any other gifts that can entice you to be loyal.
Like other marketing efforts, a good loyalty program needs resources that you may have shifted towards other activities of the business. In case you are not sure of the efficiency of loyalty program, or you have not implemented it in your business as a marketing strategy, then you have to look at the following reasons why loyalty program can be the best option that you can take.
1. Enables business to grow
Each type of loyalty program may produce various results, but since you are a marketer you should overlook the way loyalty programs have been tested regularly in many companies, and they have been successful.
2. They are very cheap
It is obvious that when some marketers hear the idea of using loyalty programs, they start to imagine of using a lot of resources in the program that may or may not be successful. In reality getting new customers is highly costly, according to the article in Forbes asserts on February 2013 it revealed that it was seven times less expensive if you wanted to keep an existing customer compared to when you wanted to get some new ones. Therefore, even the resources that you can use in the loyalty program can be less compared to ones that you can use to find new ones.
3. Can boost your reputation
Loyalty programs usually serve two functions: to make sure that existing customers who are loyal continue feeling that your business always values them and to instill an urge in the new clients that can make them stick around after they have bought goods and services from your company.
By implementing a loyalty program, you will not only make your customers appreciate your business, but you can also make the existing customers to share this joy with the people who may be surrounding them. The more your customers will be appreciated, the more they will recommend your business to others thus supporting it. Through word of mouth your business will then grow to greater levels.
4. Increases sales by using awards that are enticing
So many customers to like loyalty programs since they can get additional incentives after making a purchase, these rewards usually increase linearly as you buy more goods and services or depends on the kind of item that you buy. Due to this marketing strategy, you can able to make you customers to spend a big portion of their money in your business.
This can only be effective if the rewards that you offer go in hand with the wants and needs of your regular customers. It is good to know that loyalty program is not the same and one that you can use correctly will make a great impact. The rewards that you give can entice the customers to buy more goods only when the incentive that you offer make a great impact.
5. It offers essential market research
According to a statement released by Troy Ireland who is the CEO of the SEO agency digital content, he said that one of the main sets of data for research that a marketer can get is to understand the buying behavior of a given population. To develop the best strategic plan for presenting your products in such way that you can make high sales, you have to understand what your target population avoids as wells as what makes them use their money.
If you use loyalty programs, you will be conducting some research that can offer you with similar information about your clients. Through trial and error, you can discover the kind of incentives that increase the desire of your clients and those that do not produce greater results. Using this information you can then decide to attach the most valued rewards to specific products that your clients like.
6. Makes customers happy
The incentives that you offer to your loyal customers can keep your business in higher level compared to those that are not using them. If you use loyalty programs, you will not only inform your customers that you wish to make money from their purchases but you will also build a mutual relationship with them.
7. You can offer both digital rewards or in-store (or offer one of them)
One of the benefits of the reward programs for both the business owners and the customers the rewards can be used on the purchases made in person, online or both. If you realise that you make large sales from customers who shop online, you can enhance your rewards online. On the other hand, if you realize that many people like making sales in person then you can use an in-store.
8. It ceases being work, once it gets started.
It is obvious that you have to commit your effort in implementing a reward program. You have to research the preference of your clients and the scheme that you use in your business. Once you set up the program it will become a driving force due to its nature, such when a client makes more purchases, the more rewards that he/she gets, in turn, this will inspire them to continue to buy more goods and services. If you continue to update the rewards, you will keep your clients engaged, that the effort that you have to use in doing this which be portrayed by the experience of the company.
It is no doubt that loyalty programs are the best marketing tools as they improve the reputation of your brand, assist in retaining customers and enabling the company to grow. If you have not implemented a loyalty program as your marketing strategy, you are missing the easiest and the best tools that you can use to be successful in your business. Contact Edenred Singapore for more information!