Customer loyalty programs have a lot of benefits for both customers and the company. These programs are based on personal data and stats of a person to customize the benefits they are eligible to receive. Customer Retention is one of the biggest benefits for the company itself, it gives customers a motive to buy from the company again and become a loyal customer. According to marketing research, loyalty programs can increase a company’s revenue from 5-10% (Miller, G). Loyalty programs allow companies to view the buying behaviour of individual customers to measure the results of promotions and increase reactions. A company is able to track the success of certain promotions or sales and use that data to increase their profit. They can also use the data to make future improvements based on the customers reactions. Companies can eliminate the number of unprofitable customers who only purchase products from them at a discounted value that cost the company more money. Through loyalty programs companies can also communicate with their customers and address new announcements or promotion sales. Often times, these programs allow customers to save money by receiving exclusive discounts which can also make customers feel appreciated. This can increase the likelihood of a customer purchasing from that same company again. Along with keeping already existent customers, loyalty programs attract new customers that are wanting to receive these special offers. Lastly, they allow plenty of room for growth and new opportunities. Loyalty programs help promote the company and can turn loyal customers into advocates to spread the word about your brand. Are you signed up to any customer loyalty programs if so, what benefits influenced your decision to sign up? Drop a comment down below.
Citations
Dhamdhere, P. (2018, October 11). Annex Cloud. Retrieved from https://www.annexcloud.com/blog/10-pros-and-cons-of-loyalty-programs/
Miller, G. (2012, April 12). 10 Benefits of Implementing a Customer Loyalty Program. Retrieved from https://www.annexcloud.com/blog/10-benefits-implementing-customer-loyalty-program/
Thakore, M. (2018, December 04). Blockchain can save Customer Loyalty Programs from becoming Unfruitful! Retrieved from https://hackernoon.com/blockchain-can-save-customer-loyalty-programs-from-becoming-unfruitful-3992c6bc6053
Customer Loyalty Programs 