Talk About The Importance Of Customer Loyalty Programs

Posted by jennifertay on July 19th, 2017

There is an idea floating around among many business owners that these programs are expensive and do not really return a net profit to the business. But it is best to dispel such notions because customer loyalty programs are one of the best ways to make sure you are going to get a significant level of loyalty from the customers who have already been doing business with your company.

At the end of the day, all customers have options at the table. Unless you are the only place in a small town selling a particular product or service, customers can go to any of your competitors to get a similar service or product. However, something such as small business loyalty programs can really make it so that these customers see an incentive in always coming to your store or online site when they want to buy something that you are selling. These are the main reasons why you would want to have loyalty programs in place. But what are some of the other benefits? We can take a look at them now.

One of the main benefits is that it boosts the growth of a business. Statistics have shown that a small business that has loyalty programs is going to see much more growth than a company that does not bother having one in place. Not only is it easier to market a company through various channels when these programs exist, but it is a great way to contact customers and remind them what they have to gain from doing business with your company again. And what about the biggest issue people have with these programs - the cost?

The fact is that having customer loyalty programs are going to cost you way less than you think. Statistics show that around seven times more money is spent by a company to acquire new customers as opposed to the money they spend in keeping existing ones. So even if you look at the money you must spend on rewards or small business loyalty programs, it is not going to cost you nearly as much as what you are going to spend on getting new customers. If you can keep more of your existing customers, you have less need to go out and spend a ton of money on marketing to attract new clientele.

Another thing that loyalty programs do is improve the overall impression people have of a business. Not only are you going to make current customers more enthused at doing business with your company, but they are also going to talk with their friends, family, and colleagues about how they are enjoying doing business with you. They will also mention your customer loyalty programs as a reason for why they do business with you and not your competitors.