Do your customers wear out the welcome mat with repeat patronage? If not, you can increase your revenue and customer retention levels through the benefits of customer loyalty programs.
The hottest buzzwords in marketing are “customer engagement,” and frequently small business owners think this means only social media. However, customer centric marketing goes far beyond likes and tweets. Implementing a comprehensive loyalty program does not have to break the budget in order to produce impressive results.
Acquiring new customers is always a top goal, although each new acquisition can cost up to 10 times the amount of customer retention. Many small business owners miss this key factor in building a thriving enterprise because they don’t understand the benefits of customer loyalty programs, or perhaps see them as an unnecessary expense.
What are the top reasons to embrace a multi-channel loyalty program? Take a look.
The Benefits of Customer Loyalty Programs
Repeat customers spend more on average than new ones.
According to a BIA/Kelsey and Manta report, a returning customer spends about 67 percent more per transaction than a new customer. In addition, over 61 percent of the small businesses survey indicated a majority of revenue comes from their established, repeat customer base. By offering loyalty programs, you are not just saying thank you, you are boosting sales through more cost effective means. The result? Happy customers spread good will about you throughout their personal, professional and social networks.
You will gain the competitive edge with an effective loyalty program.
Incentive Solutions will give you the ability to offer rewards that easily compete with large brands even while maintaining a personal touch with your dependable buyers.
Harnessing the advantages of customer loyalty programs can be very cost effective.
Although large corporations may spend millions of dollars on reward campaigns, small businesses don’t have to do this to achieve stellar results. In the current mobile environment, digital rewards campaigns can produce an excellent return on investment. Your customers can earn perks just through using their smartphone. Gone are the additional expenses of printing punch-out cards and paying for ink. Most importantly, this makes it far easier for customers to take advantage of those perks. They can ditch those worn out punch cards!
The benefits of customer loyalty programs are now easily available to companies of all sizes, not just major brand name players. They put the same type of benefits, such as online rewards, debit and gift card rewards and group travel incentives into your customers’ hands. This gives you the ability to edge out the competition, build stronger relationships with your client base and increase sales.
Incentive Solutions offers far more than reward fulfillment. Our cloud-based, modular platform implements quickly and easily. Most of all, it gives you access to incentive plans, performance tracking, mobile apps, quizzes and surveys and much more. Talk to us today and watch as your repeat customers wear out your welcome mat.
Luke Kreitner is the VP of Sales at Incentive Solutions, an Atlanta-based incentive company that specializes in helping B2B businesses accelerate growth, increase sales, motivate channel partners and retain B2B customers.