According to a statistic, 83% of customers said that the customer loyalty program keeps them to continue making transactions with certain companies. Thus, what are the exact benefits that the customer loyalty program brings to the business? Let’s find the answer below.
Customer retention & Reputation Improvement:
Keeping customers to stay longer with the brand is the key factor in sustainable business development. It costs less to maintain current customers than acquire new prospects. The customer loyalty program is one of the most effective methods. To retain customers by encouraging them with many values and benefits while consuming the product of a certain brand name.
Making customers satisfied with the company’s services or products is also a good way to increase the business reputation. The customer loyalty program can help the business in expanding customer appreciation. And increase the customer’s word-of-mouth to share their satisfaction with people around them. On the other hand, the more a customer feels that your company serves them well the more he or she will widespread your brand name out to their familiar ones. Word-of-mouth is proven as the cheapest and most credible method to promote your business.
Increase revenue and reduce costs
By using the customer loyalty program, the company creates brand credibility for its customers so that it encourages customers to spend more. According to a statistic, 49% of consumers agree they spend more after having joined a loyalty program.
Acquiring new prospects can be 25% more costly than retaining current customers. By creating and implementing a loyalty program, businesses can save a large amount of money for new prospect acquirement. So, this budget can be used to increase customer service quality or for other purposes.
Increase customer satisfaction & Customer relationship reinforcement
76% of consumers think that loyalty programs are a part of their relationship with brands. To increase consumer experience and satisfaction. The company can gather valuable data from the CRM system particularly from the customer loyalty program. Analyze the gathered data, your business can make better suggestions to your customers. So, that will then increase the preference for your brand name.
The more customer satisfied with your business products or services, the longer time the relationship between the company and the customer is maintained.
Attract new customers
A good loyalty program can attract new prospects in many ways. If a customer sees that your loyalty program where benefits attracted them. And the requirement are within reach, they are more likely to try your brand. A good loyalty program that creates a positive reputation. For your business can also impress your prospects. And encourage them to experience your products or services.