It’s hard to argue that customer loyalty isn’t an important component of your business’s growth and retention. That said, some businesses can find it difficult to justify putting the time and energy into a customer rewards and loyalty program.
Here are a few reasons why customer loyalty and rewards programs work – and why you should consider implementing one into your business today.
This is a big one. The number one reason why customer rewards programs work is because your customers actually want to participate in them. According to the 2016 Bond Loyalty Report, 81% of consumers are more likely to continue doing business with brands that offer loyalty programs.
Nowadays, customers are looking for more in their shopping experience. They want to create relationships with the brands they spend their time and money on. Chances are, you’ll find success in incorporating a customer rewards program into your business because your customers already want to participate in one.
Customer loyalty programs often use gamification techniques to help incentivize your customers to take certain actions.
Applying principles of gamification to your customers’ actions and interactions with your business can help improve customer loyalty and make coming to your business a habit. Because gamification taps into human psychology and basic needs, it works without you having to come up with new ways to get your customers coming back to your business or referring their friends.
The right customer rewards program runs in the background and seamlessly integrates with your point of sale or membership system. The reason that this is important is twofold.
1. You want a program that doesn’t take up your precious man hours, either for yourself or your staff.
2. Your customers want instant gratification – that means points shortly after completing an action.
Customer rewards programs are often successful because they are built to run on their own, meaning less time and man hours spent managing them.
There isn’t a one-size-fits-all customer rewards program, simply because not all business are alike. That said, your rewards program can actually be tailored and customized to help you reach specific goals in your business.
For example, if you’re hoping to focus on growth, you can amp up the emphasis on referrals in your rewards program to bring new people through the door. Similarly, if you’re hoping to increase retention, you can put the focus of your rewards program on frequent visits and social media posts.
All in all, customer rewards programs are successful because they fit the desires and needs of both your business and your customers. Working together, you and your customers will develop deeper relationships that will further extend the success of your customer rewards program.