Keep Customers Hooked with Customer Loyalty Programs
Customer retention is a necessity for your business. In fact, customers who have previously made a purchase from you are 60 percent more likely to purchase at least one more time. But while the statistics don’t lie, many businesses put customer retention on the back burner and focus their time on bringing in new business.
New business is important, but it’s only one side of the coin for business owners and startups. Consider this:
Trying to recruit new customers is five times more expensive than focusing on retaining your current customers. And what’s more, trying to establish loyalty between you and a brand new customer is 16 times more costly than focusing on the relationship between you and existing customers.
Key takeaway? Brand loyalty is a powerful thing. And one way you can start cultivating that loyalty (especially during the holiday season!) is by leveraging customer loyalty programs.
3 Loyalty Program Benefits
- Loyalty Programs Make You Competitive. Did you know that over 70 percent of customers choose a store brand based on the loyalty program offered? Customer loyalty programs give you an edge over the competition by attracting new customers and retaining them.
- Loyalty Programs Build Trust. Consumers are more focused than ever before on following brands they can trust. A loyalty program sends the message that you care about your customers and want to reward them for choosing you, which helps establish some early trust and gratitude.
- Loyalty Programs Improve Bottom Line. Customer loyalty programs can have a major impact on your business’ bottom line. Even a small lift in customer retention can mean significant increases in your company’s profits.
Customer Loyalty Program Ideas for Your Business
Loyalty programs have the potential to offer both you and your customers a lot of benefits. But what sort of loyalty program is right for your business? Here are some loyalty program ideas to get you started:
- Mobile Loyalty Program: A mobile program lets you easily reach your customers on their mobile devices anywhere. It’s quick, convenient, and gives you the chance to target different offers to your various audiences.
- Promotional Gifts with Purchases: This is a great one to use during the holidays when everyone is out shopping. A free gift not offered any other time of year gets your customers excited and keeps your business top of mind.
- Loyalty Points System: If your business is focused on frequent purchases, a points system is a great way to go. It’s flexible, low-risk, and makes it fun for your customers as they earn and spend points.
- VIP Programs: Online retailers are taking advantage of monthly VIP subscriptions. By signing up for a small monthly fee, VIP members get exclusives other people don’t. This can help ensure customers keep coming back. Just make sure to make it as easy as possible to cancel when members want to quit their subscription.
- Referral Programs: Give customers discounts and exclusive rewards for referring new business. This brings in new customers (since people trust recommendations from friends and family) and encourages your current customers to keep spending with you.
EMS Can Help You Retain Your Most Loyal Customers
Ready to give your customers a reason to keep coming back to you? At Electronic Merchant Systems (EMS), we care about your business success and customer needs. We provide credit card processing and merchant services including loyalty programs to help you increase your customer retention.
Call (888) 672-3490 or request a quote today to learn more.