5 Big Benefits To Loyalty Rewards ProgramsMiCamp Solutions
Customer satisfaction is critical to the long-term success of any business, and especially important for consumer-facing companies. More than four in five satisfied customers are “more likely to do business with you again if they have a positive experience,” and virtually all will take action after a not-so-great one – bad-mouthing you to their inner circle, for example, or posting on social media and review sites.
While there are countless ways to earn ongoing advocacy, one of the simplest and most measurable is integrating a customer loyalty program. From hotels and airlines to restaurants and e-commerce brands, countless companies are rolling out these turnkey initiatives to incentivize repeat visits and increase conversions – and they’re doing it without the hefty investment that comes from most large-scale promotional campaigns. In other words, this one’s a win/win. Some other key perks?
- Drive Significant Growth
Sure, a loyalty program tied to low-cost everyday essentials will, likely, see more scans or punches than a program tied to luxury vacations or first-class travel. But, regardless of your industry or niche, these programs can boost your bottom line by driving existing customers to take more action.
- Improve Word-of-Mouth
Nearly three in four loyalty program members say they’ve recommended the sponsoring brand or business to a friend. “The more a customer feels appreciated by a business,” says Marketing Land, “the more he or she is likely to support that company and recommend it to others. This, in turn, carries on in a word-of-mouth cyclical nature that continues to achieve growth for your business.”
- Do More With Less
Whether you’re a startup or an established business, chances are you’ve got a close eye on your marketing budgets – that’s where loyalty programs come into play. “Common marketing lore states the cost to acquire a new customer is far more expensive than to keep an existing customer,” says Forbes, “six or seven times more expensive.”
The cost to launch a loyalty program? Significantly less. While fees can vary, some very successful programs hinge on the basics: key tags or cards that sync with an existing POS. It’s quick, it’s low-cost and it works – the Holy Grail for many businesses.
- Encourage Cross-Platform Engagement
Seventy-seven percent of smartphone users say they’re “more brand loyal” to companies who push promotions and other exclusive content and offers via mobile. Not only is that a big win for mobile-focused brands, but it also provides an organic, benefit-rich opportunity for driving consumers from your store or core digital experience to mobile sites, apps, and location-based promotions. From a multi-platform perspective, it’s a win all around, giving your business more touch points for engaging and activating buyers.
- Enhance Customer Satisfaction
Again, it all comes back to customer satisfaction, which loyalty programs consistently drive. “As long as the rewards offered are of interest and of value to the customer,” writes The Balance, “they will feel acknowledged and appreciated and feel grateful towards the retailer in return.”
That, ultimately, is the core benefit to these initiatives. A successful loyalty program drives consistent, ongoing engagement and conversions. A recent study indicated customers are “only 12-15% loyal to a single retailer but they represent 55-70% of total sales.” Focus on growing these relationships to grow your bottom line. And when you do, MiCamp will be standing by, ready to seamless integrate your loyalty program into your payment solutions – get in touch to learn more.