Why Your Business Should Invest In Customer Loyalty Programs

What is the best way to attract and retain customers? Providing excellent customer service is definitely a great start. Offering top-of-the-line products and services is also a strong method. However, for small and medium-sized businesses, it’s pretty important to take things a step further.

Have you ever considered offering a loyalty rewards program? A well-designed loyalty program doesn’t just work to keep your customers coming back. It also turns them into brand advocates who help grow your business organically.

Customer retention is cheaper than acquisition.

Business owners have long known that acquiring a new customer is a lot more expensive than retaining an existing one. This is why loyalty programs are so lucrative. They incentivize repeat business, keeping your customers engaged and increasing their lifetime value.

Don’t underestimate the power of making people feel valued and appreciated. A loyalty program that offers perks, discounts or exclusive deals shows customers that you value their business. A program that rewards customers for their spending builds trust and emotional connections. It increases the likelihood that your customers will choose your business over your competitors.

Loyalty programs encourage higher spending.

Sure, you can sell products to your customers. But is that all they’re getting for their money? When shoppers know they’re earning points for their purchases, they’ll be willing to increase their spending. Customers who accumulate rewards points tend to spend more per transaction. As well, many loyalty program members say they’re willing to change their spending habits to maximize rewards.

“Over 83% of consumers say belonging to a loyalty program influences their decision to buy again from a brand,” reports Queue-it, “75% of consumers in loyalty programs will buy more products from the companies they partner with… 84% of consumers say they’re more likely to stick with a brand that offers a loyalty program.”

There are many different types of loyalty rewards programs.

A points-based program is probably the most popular. It’s pretty simple and easy to manage. Customers earn points for every purchase and redeem them for discounts or free products. This easy-to-implement idea is a great way to grow sales and the size of your customer base. You could also go for a tiered rewards program. This is where you offer increasing perks as customers reach new spending levels. It encourages both ongoing engagement and bigger purchases.

What about referral bonuses? You could reward customers who bring you new business. As every business owner is aware, word-of-mouth marketing is super powerful tool. You may also opt for giving your customers exclusive discounts and early access to new products or services. It also can’t hurt to offer random gifts or thank-you messages on anniversaries or birthdays. This can go a long way in fostering loyalty.

Make use of Melo Text!

Melo Text is a smart SMS marketing software that allows you to create effective SMS marketing campaigns easily. Among its many amazing features, Melo Text allows you to offer loyalty rewards! Forget those archaic and often misplaced paper punch cards. Offer SMS “punch card” loyalty rewards to your customers and build loyalty to your brand to keep customers happy and coming back.

Digital punch cards remove any unnecessary hurdles and dramatically increase customer engagement. To learn more about Melo Text, please don’t hesitate to call Melo Technology at 1-888-MELOTEL. You can also fill out the form on our Contact page!