Consumer loyalty programs might be one of the best kept secrets in marketing, because they receive so little press. Recent research has shown that there are more than three billion loyalty program memberships in the United States – an average of twenty-nine memberships per household.
Loyalty programs are not only for businesses like gas stations and grocery stores. Nearly any form of business – B2C or B2B – can implement them and reap the rewards from a public that is happy to join them.
Reasons to Consider Implementing Consumer Loyalty Programs
- Excellent ROI
One of the most critical functions of a loyalty program is to encourage customer retention. This is important, because studies have shown that converting new customers’ costs, on average, 5-10x as much as customer retention. Seen as a marketing expense, loyalty programs are a bargain when it comes to maintaining customer numbers.
- Market Research Opportunities
Loyalty programs are not merely giveaways. Since they allow precise tracking of customer behavior on an individual and/or household basis, they provide a wealth of data which can be used to fine tune your products, prices, and advertising. This is data which can be extremely expensive to procure in other ways, adding to the overall value.
- Loyalty Programs Increase Customer Enthusiasm
The value of customer testimonials and referrals cannot be overstated. Word-of-mouth still remains by far the most effective form of advertising, and modern online outlets offer more opportunities for genuine testimonials than ever before. Loyalty programs create happy customers who are significantly more likely to give such referrals.
- Increased Sales
When properly implemented, the rewards in a loyalty program should scale upwards alongside the value of the products being purchased. In such a situation, loyalty programs easily inspire additional sales. Customers near the next reward tier are very likely to splurge, if the rewards are attractive.
- It’s a Self-Perpetuating System
The hard work with consumer loyalty programs is all at the beginning. Once implemented, with automated systems handling the rewarding and delivery of prizes, the loyalty program requires little oversight. The returns on investment can continue almost indefinitely with minimal extra expenditure.
Grow Your Business Through Loyalty Programs
Brandmovers is the top choice for all-in-one loyalty program solutions, from campaign creation to delivery platform. We can work with organizations of all sizes to boost their appeal. Contact us today for more details.