There are many benefits of creating a loyalty program for your customers, especially when it comes to maximizing efforts and improving customer retention and engagement. There are six main points we’ll focus on here, but it’s just the beginning.
A customer loyalty program is simple in concept. When a customer buys from your business, you reward them with points they can redeem towards gifts or coupons. You can also reward a customer for following you on Facebook, joining your mailing list, or give out rewards on their birthday as bonus points.
No reward program is exactly the same and it shouldn’t be! You do business in a way that other people could not, your loyalty program needs to reflect that.
Whether you are looking to benefit from the use of loyalty program software or to generally get your loyalty program started, LoyaltyZen has the material you need. Before we discuss where you can learn more, we’ll share with you the benefits of loyalty programs overall and then what makes our way efficient and easier for your company.
After all, you are looking to maximize your profit and customer engagement, while minimizing your ad spend, and lowering your required time to manage such a program. The benefits have to come from all sides so that you can see a return because time is a resource you don’t want to waste.
Loyalty Programs Help Retain Customers
The most obvious, but also most important, benefit of a loyalty or rewards program for customers is that it helps incentivize customers to stay with your company.
When you reward your customers for purchases, they become invested in you as well. Seeing their rewards points increase in an online rewards portal encourages customers to keep purchasing, rather than shop around with similar brands.
When you provide rewards points with each purchase, your customers feel they’ve made progress towards a goal. That perception in an auto-enrolled loyalty program helps customers increase their commitment to your brand.
Loyalty Programs will Increase Your Customer Lifetime Value (LTV)
Because customers get rewarded, they are more likely to increase the number of items in their cart and/or increase the frequency they purchase products.
Rewards Programs Maximize Return On Investment (ROI)
Finding customers, advertising to them, and encouraging them to make the first purchase is an upfront investment. By increasing the order sizes and encouraging customers to stay through a rewards program, you are maximizing that investment. Keeping customers cost less than finding new ones, which is why loyalty program software is a necessary piece of the puzzle.
Whether you are a small business or a large one, loyalty programs help you keep a customer for less cost than finding a new one.
Loyalty Programs Help You Compete
Price is not the only factor in the purchase decision process. If other companies in your niche are charging less than you or priced similarly, how you take care of your customer is what will stand out. Using white-label loyalty program software will help you stand out with a product experience that is uniquely yours.
Price is not the only way you can compete. Show the personality in your brand through how your loyalty program runs. We’ll provide examples of how this can work in the next section.
Build a Personal Relationship with Customers Through Rewards
There are dozens of ways to stand out through a loyalty program. At LoyaltyZen, you can get started with an advanced online customer rewards program in minutes. We have many reward types to mix and match, along with unique incentives and groupings you can use to further brand your customers and turn them into customer advocates.
Imagine setting up a tiered loyalty reward system like a club hierarchy. As customers spend more and redeem more points, they move up a hierarchy system. These tiers can each be given a club name, with different awards attached to each. For example, after the first purchase of whitening products you join a “smile club.” As you move up the tiers, customers can become “smile royalty” and more.
Incentivize rewards, make them fun as well as valuable to customers, and you can encourage a long-term relationship where they feel like part of a community.
Collect Customer Data
Customers are willing to share their personal information (like e-mail or phone number) for a discount or service. Perfect! This is exactly the information we need in an effective loyalty program.
You have already paid advertising money to attract this customer to your website, by getting their information and tying it to the loyalty program you can encourage them to come back through a regular communication plan.
An important feature of a loyalty program is having the data to make progress easy to track with customers and to let them know that progress.
Communication Benefits of a Loyalty Customer Rewards Program
Through our white-label loyalty program software, you can launch e-mail and SMS campaigns that match your brand voice and communicate sales, promotions, and new launches to customers.
In fact, 41% of consumers say that e-mails personalized based on their past purchase behavior encouraged them to shop more than generic email messages.
By consolidating systems, you are saving time and money while you continue to re-engage customers.
Why Work With LoyaltyZen?
We have “zen” in our name for a reason. Starting a loyalty program on your own is a lot of work. When browsing the pros and cons of rewards programs, you’ll see that a major con is the amount of time spent in making it right for your customers and business. We take that con out of the equation with our white-label loyalty program software.
We built it from the ground up to benefit you, leaving the heavy lifting to automated software. After years of running loyalty programs manually, we knew the pain points our product needed to solve as we were building it. This hands-on experience is unique to our industry, as we saw the day-to-day of running these programs solo.
With our software, you have a mobile-ready loyalty customer portal out-of-the-box. No matter where your customers are, they have the information they need and the incentives in place to be loyal to you.
We keep our logos out of the equation. Your loyalty program is a custom fit for your brand. And the best part, the setup is fast and you get a full set of data to work with once your customers join.
Let increasing your customer lifetime value and ROI increase with our loyalty program. Get started today on LoyaltyZen.com.