Customer Loyalty Program And Benefits

Customer loyalty programs can function as the promotional linchpin that drives your company’s long-term profitability. They are an essential tool for improving customer retention. By offering your customers digital incentives, such as skins, music downloads and an assortment of mobile promotions, you can dramatically increase the lifespan of each customer. Not only does this create an enormous level of goodwill, but customer loyalty programs also encourage customers to respond to your ongoing marketing campaigns.
The expense of a customer loyalty program means that companies have to be very diligent in their research of what to offer and the demographics of who they are trying to reach. It is vital that they get it right or these customer loyalty programs could cost them far more money than they will ever get back and that could be the undoing of a company that is not on stable ground. Grocery stores that have mature customer loyalty programs spend about 1-1.5% of their revenue on customer loyalty programs. Furthermore the commitment to customer loyalty programs is long term it could take almost 18 months before you start to see returns. It would be unfortunate to have irate customers after you drop a much loved program due to expense, shortly before you start to see the returns.
Loyalty cards can also provide a great marketing tool for you to get a clear understanding of your customers. Collecting personal details such as the customers address or email on the reverse of a loyalty card is very simple yet clever. Customers are unlikely to give up personal information, however with the temptation of an offer many customers will provide their details. Its important to promote yourself using professionally printed loyalty cards that temp the customer to return again and again. Once you have collected the information on your customer you can get a clear understanding of who purchases from your business and use this for your future marketing activities.