Loyalty programs can work as powerful allies in the task of retaining customers in this economy, where it is increasingly difficult to retain users so that they return to your business to consume what you offer.
We could attribute this phenomenon to the fact that customers tend to be more informed and, therefore, demand that their products, services, experience and customer service have high levels of quality.
In addition, many other companies are using loyalty programs as rewards systems for consuming and are already used to this.
In this post, we will show you what loyalty programs really are and what value they bring to loyalty actions. Let’s get started!
What are loyalty programs?
Loyalty programs can be defined as a structured system of marketing actions and strategies, aimed at encouraging users and customers of a brand or business to purchase its products with a certain frequency.
With the intention of retaining customers, there are several ways to design and implement loyalty programs.
For example, the most common in stores such as supermarkets or supplies is to give points for each purchase and that they be exchanged for discounts or exchange those points for other products.
What are loyalty programs for?
Retaining a client by encouraging him to return to your company has positive and direct repercussions on your financial statements and economic results.
But, so that you are clear about its benefits, we show you the main ones and why you should take this strategy as a real possibility for your brand:
raise your income
Planning and executing a correct and well-directed marketing or digital marketing strategy will make customers loyal and with this, they will always resort to buying your brand, which will generate the extraordinary benefit that you require in your business.
Also, retaining a user through loyalty programs can cost a lot less than getting a new customer. Therefore, the resources allocated to implement loyalty programs are an excellent investment.
Increase your reputation
A customer who has a pleasant experience, good service, rewards and quality products will undoubtedly return. And more than that, they will recommend your brand to their acquaintances and friends.
Word of mouth advertising has proven to be one of the most effective and, despite not being the fastest, it brings multiple benefits to organizations.
Stimulate the growth of your business
Applying one of the loyalty programs that are predesigned among marketing agencies or taking a competitor as an example, will allow you to develop aspects such as scope and innovation within your company.
Loyalty plans, according to the objectives you set for them, almost always manage to stimulate the growth of your organization and the brand.
Now, you already know some of its main advantages. It is time that you know how to apply it within your strategies.
How to implement them to retain customers?
Surely you know and are even part of one or several loyalty programs, but have you noticed that some are more successful and attractive than others?
Next, we will show you a way to implement them in your business and that you can achieve the purpose you want.
Don’t walk away!
Clearly define goals
Like almost all strategies, loyalty programs spring to mind first. So it is important to define what you want to achieve, such as:
- get new customers;
- retain regular users;
- increase your participation in the industry;
- improve the relationship with your customers;
- increase sales of a product or an entire line;
- gain authority in the market;
- reinforce the image of the brand;
- among others.
Attract the public compatible with your business
Loyalty programs are effective when they are directed especially towards those users with characteristics related to your products and services.
It is important that before starting with loyalty programs, you recognize who your potential customers are, what their interests are, tastes and what motivates them to consume.
Give attractive rewards
Being able to save or even earn money from purchases is the main phase where loyalty strategies are supported.
Design and execute loyalty programs that truly reward your customers’ loyalty. Exceed their expectations and give them promotions that are similar to their interests and needs.
Likewise, you can use various levels of rewards according to the level of commitment that the client has with the business.
set clear rules
Establishing the rules of the game very clearly and simply, so that the client can understand all the conditions and does not feel cheated in any way, is vital for the success of the strategy.
Spread and promote your loyalty programs
After doing all of the above, it is time to publicize your loyalty program.
To do so, you can use your usual channels of communication with your audience, such as a direct relationship in your establishments, paid promotions on social networks, Email Marketing campaigns, among others.
Once the client is affiliated, it is crucial that you keep them informed in a fluid way through your channels. Therefore, follow these steps:
- keep the program always present in your promotions;
- educate your customers so they know how to use it;
- study the competition to offer better loyalty programs;
- motivates the user to use the program.
Remember that the success of the loyalty program will have a lot to do with the efficiency in which you manage to communicate and keep it in the minds of your customers.
study the results
You will constantly get clues as to how your loyalty program is doing. Through the analysis of the customer retention rate, the churn rate and the customer effort score, you will be able to measure the effectiveness of the strategy.
Do not forget that the success of a loyalty strategy lies in offering rewards, not necessarily material ones, to the correct group of users.
Thanks to these steps, you will not only be able to start applying a loyalty program to raise your income level and raise your reputation in the market, you will also be able to offer quality programs that adjust to the interests of your public and, in addition, you will be able to measure the results to apply the necessary adjustments.
Are you ready to start applying loyalty programs in your business? We are sure that it is!
However, if you want to learn more about Marketing and its strategies to increase your participation in your market, you cannot miss the Complete and FREE Marketing Guide!
Complete Marketing Guide!
Download it for free to learn how to create your strategy