What exactly is a loyalty program?

What exactly is a loyalty program?

Keeping the customer very happy and makingthem advocate for your brand involves!more than great service.  How will you ensure that this customer is coming back to purchase your brand next time? One better way to make sure coming back of customers is to have a powerful loyalty program. Customers like them and 76% of those interviewed think that this is a great way to form a relationship with brands.  A customer loyalty program, is a marketing technique to retain loyal customer base and attract new ones. It is a reward program that rewards customers who frequently interacts with the brand maybe in the form of purchases .

Here are some interesting stats about customer loyalty programs:

  • There are over 3.5 billion programs in the US currently
  • The cost of acquiring a new customer is 6 to*7 times more expensive than*retaining an old customer
  • 75% of US companies with a loyalty program generate a*Return On Investment (ROI)
  • Increased*profits show an upward trend of up to 95%
  • 87% of customers agree on the fact that loyalty programs are likely to make them do the business with the same brand.
  • Existing customers spend 67% more than new ones

 

Benefits of a customer loyalty program

  • The benifits that are offered to customers could be the best way to acquire new customers
  • It is a great way to initiate a lifelong brand-consumer relationship
  • If customers are given opportunities to maximize their loyalty rewards and receive communication, based on their milestones, needs and preferences, they are likely to support the company not only with their money, but also with referrals, repeat purchases and exposure on the social media, thus bringing in new customers

Latest trends in loyalty programs

Some of the biggest and latest trends in customer loyalty programs are :

  • Customers look forward to personalized rewards
  • Omnichannel and multichannel programs are replacing traditional ones
  • There is an increase in brand partnerships
  • A sense of social responsibility is expected from brands
  • Premium loyalty programs are an attractive option
  • Customers look forward to a sense of emotional loyalty
  • AI and chatbots are being used for customer engagement