The Benefits of a Loyalty Programme
From encouraging the loyalty of existing customers to encouraging the loyalty of new customers, a loyalty programme can give a retail business a significant boost in both awareness and turnover. If you are thinking about implementing a loyalty programme but are not sold on the idea just yet, take a look at our list of convincing benefits before you make a decision:
1. Increased revenue
The first and foremost benefit of a loyalty programme is that it generates increased and sustainable revenue for your business. A loyalty programme encourages customers to regularly spend more for a minimal reward; giving retailers the opportunity to maximise on revenue and minimise costs on rewarding their customers. A loyalty programme also encourages customers to shop and spend their money in support of your brand, giving new meaning to customer retention and acquisition.
2. Save money and cut down on costs
A loyalty programme gives you the opportunity to cut costs and save money by rewarding your customers in points, money back, special deals or discount codes. Due to the high volume of customers who make use of your loyalty programme, you will save large amounts of money and cut any costs that you may have incurred without a loyalty programme.
3. Gather important information
Whether you’re looking to remarket your brand to your customers, or simply want to collect their information for future deals or sales, a loyalty programmes gives you the opportunity to collect important information that can give you insights into your shoppers, their preferences and their tastes, which will ultimately stand you in good stead as you will be able to create an entirely unique, personalised sales experience. Not only will this keep your customers coming back for more, but it will also put you ahead of your competitors.
4. Increased sales
Once you have personalised your customer’s shopping experience and gifted them with a loyalty programme, the chances are high that they will spend more money due to the fact that they feel appreciated. They will also feel that they are, essentially, saving money on their purchases due to the mere fact that they have a loyalty card in their possession.
5. Room for growth
A loyalty programme allows retailers the opportunity to identify any opportunities for growth by identifying gaps in their processes, surplus stock, depleted stock, stock management, and sales strategies. By means of data collection and analysis on the decision maker’s part, retailers will be able to create a more air-tight approach to a sustainable and effective sales strategy.