When you think of a loyalty program you probably think of Starbucks Stars, grocery rewards, or maybe the points you collect when purchasing your fuel. When Starbucks launched their loyalty program they saw an instant growth in sales, global same-store sales rose 7%, driven by a 4% increase in customer visits. Net revenues increased 18% to a quarterly record of US$4.9 billion. Now more than ever customers are accustomed to shopping at places that will give them points for their daily purchases. As you shop for a rewards program for your business the main question that needs to be answered is - what value will a loyalty program bring to you as a business owner.
Increases Sales by Creating Enticing Rewards
A rewards program prompts customers to spend more so that they will gain points to redeem rewards. Having 3-5 rewards with different point levels adds a gamification element to your loyalty program. When you have different reward levels customers are more likely to spend more to unlock their next reward.
Improve Your Brands Reputation
Loyalty programs can help do your marketing and build your brand. With uniquely branded welcome messages, personalized email marketing, and automated SMS Marketing. Having a loyalty program creates a marketing platform that helps you engage with your customer and build your brands message and reputation.
Once a customer signs up for the loyalty program you have all the tools to draw a first time customer to come back again. Their information to communicate to them, the loyalty program that they now have points with and can continue building, and the message that you want to invest in your customers. A study shows that 68% of customers leave a company because they believe you don’t care about them. Having a loyalty program gives you the tools to grow relationships with your customers on autopilot.
Make Customers Happy
A study by Technology Advice showed that 83% of consumers are more likely to go to a business that has a loyalty program. Giving back to a customer makes them feel appreciated, and in their mind they’re getting free product which makes anyone happy! In exchange for free product, you’re getting the opportunity to have your customers information and market to them with special deals and important information. Once a customer signs up to your loyalty program you have the opportunity to grow your fan base.
If you’re looking to grow your sales having a loyalty program can help you gain the retention that you need. Raising your loyal customers by just 5% can grow your sales up to 75%. For the small or big business owner alike, if you’re looking for a loyalty program that will work for you, book a Demo with ReUp today and we’ll show you how our loyalty solution will help build your fan club.