A loyalty program is mutually beneficial – customers feel valued and get a discount on your product/service while you increase your sales and customer base. A well-marketed loyalty program can produce dramatic results in a short period.
Loyalty programs are essential because it’s much easier to market to current customers than acquire new customers. Statistics have demonstrated that you have a significantly better chance of selling something to existing customers than prospective customers. The cost of acquiring a new customer can be as much as 7 times more than retaining an existing one. Still not convinced? A repeat customer can spend up to 67% more than a fresh one. These statistics really bring to light the importance of a loyalty card program.
If you’re still unsure whether a printed loyalty card scheme could benefit your organization, read on to see some benefits.
1. Customer Retention:
Garnering new customers is great, but repeat customers are the cornerstone of any successful business. And what better way to ensure your customers keep coming back than offering them a reward to do so. A printed loyalty card is a simple, cost-effective way to ensure your customers return repeatedly. Repeat customers spend more, are more likely to recommend your business, and can give you valuable insight into what people want from the company in your niche.2. Increase Sales
People love a great deal. A loyalty card system encourages customers to return to your business more frequently to take advantage of special offers or discounts. The growth is linear as the more money the customer spends, the more concessions they receive resulting in more money for you.Competing against the more significant, established powerhouses can be challenging for a small business. However, a good loyalty program can be a great way to show your personal side and remain competitive.
3. Improve Customer Satisfaction
A happy customer is a loyal customer. The very premise of a for-profit company is to attract and retain satisfied customers who will thicken your revenue stream.A loyalty card system boosts customer satisfaction. Rewards can be tailored to suit your target market persona; this helps you to track spending habits and gain valuable insight into customers spending trends. And, of course, it allows customers to give them exactly what they want.
4. Product Awareness
One of the most important reasons for introducing a loyalty card system is that it will give you valuable insight into what your customers want from your business. This allows you to prioritise your stock accordingly, reducing costs.It’s also an excellent method for testing new products as you can offer something to your customers for free to gauge their reactions and gather their opinions.
5. Know your customer
By introducing a loyalty card scheme to your business, you can keep a record of what your customers purchase, and you can analyze their habits. From this valuable information, you can adjust your marketing to capitalize on this trend and adapt your loyalty offers to suit your customers.When it comes to design, a beautiful loyalty card can be a great way to garner a little extra attention to your business. A well-designed card can catch the attention of your customers' friends and colleagues and get your store some free publicity. Most plastic card providers, such as CardLogic, offer a full design service for those who don’t already have a design in mind. This is a crucial part of the process, as a well-thought-out printed card with the right colors, graphics, and text can make all the difference.
