Every single day, more and more companies realize how important it is to apply loyalty programs in their marketing areas. Because of its importance, plenty of research has been done to observe the rewards of adopting loyalty programs as one of many marketing strategies significant company uses.
According to a loyalty program research done by Bond (2016 Bond Loyalty Report), 73% customers that are being included in loyalty clubs are more likely to recommend the brand of that company to other people. This is just one example of many ways company achieves success from adopting loyalty program in their strategy.
There are several urging reasons why using loyalty programs are not only recommended nowadays, butrather imperative. This is due to the urgency of needs that requires companies around the world to implement at least one loyalty program to be part of their marketing strategy. These imperative reasons are :
1. Loyalty Program Helps Boosting Customer Growth
Different kind of loyalty programs will produce different results to customer’s growth. This is all depending on the company strategy and how much that strategy hits home. Of course, many customer loyalty programs has proven its effectiveness in bringing customer growth in various industry. Some studies suggested that companies that use loyalty programs as one of their marketing strategies, strives more in bringing new customers. Keeping existing and engaged customers are also another perks of adopting this imperative marketing strategy.
2. Loyalty Program is an Effective Way to Build Your Brand
Loyalty program serves many benefits for companies. One of its many important benefits is acquiring new customer and make sure these customers turn into loyal customers. Another one is to improve the loyalty of existing customer by making
sure that they feel valued by the company. Implementing loyalty program to your company/brand will definitely help your brand to reach another level of loyalty for your existing customers, because they feel appreciated by the company. This is, of course, an excellent way to build your company’s brand.
3. Loyalty Program is Not That Expensive
Some companies definitely think about implementing a different kind of loyalty programs to boost their growth in many aspects. However, there are often companies that simply not brave enough to take risk of using existing resources to produce some kind of loyalty programs. This is due to the fear that resources that are being used will not give back any concrete growth.
However, an article from Forbes state that keeping existing customers (and ensure their loyalty) is 7 times easier than trying to bring new client to your company. By implementing loyalty programs, the company chances of retaining a significant amount of cash flow will be bigger than ever. This is definitely money well-spent with higher chances of rewards (And honestly, pale comparison) than when the company chooses to spend the money on marketing with new customer targets.
4. It Helps Increases Sales By Simple Reward
Truth be told, companies around the world could produce good results from loyalty programs that are implemented by
using simplest strategy. By simple rewards such as points, VIP-member club, and low-price bonuses, customers loyalty to the said company will be boosted and it will stimulate better and bigger sales. Of course, there is a need to do deep market research before implementing the perfect kind of loyalty program (Find out more about PRMMS Loyalty Program Strategies here). However, the reward of using these loyalty programs are also very promising.
5. Loyalty Program Provide Important Market Research
When you are offering a loyalty program to your customer, it’s important for you to do market research first. Your company needs to understand the customer’s behavior and deeper knowledge about what triggers the customers to spend more money purchasing your products. You can do this crucial market research while offering something that your customer might want through trial and error methods.
This behavior research will give ideas to your company to produce different, better modification of products for customer’s future satisfaction. Also through trial and error methods, you can implement abetter strategy for future rewards as a part of company’s loyalty program.
6. Adopting A Loyalty Program is Quite Easy
Of course, adopting loyalty program is not that simple. There has got to be some market research and precise market calculations to make sure that your strategy is proper (You can visit PRMMS Singapore to have further discussion about what kind of loyalty program your company needs). However, these steps and necessary market research would seem pale in comparison to the rewards that your company will get.
Adopting a good loyalty program can be as easy as offering point rewards. Another good tactic you can apply is by offering digital rewards to your online customers. This will both boost your customer growth and make sure your marketing is done a wider array of people from all over the world.
7. Loyalty Program Boost Customer’s Happiness
Giving more to customers as part of company’s loyalty programs will separate your company from another. This act of giving bonuses will definitely give your company a big plus point than your opponent that are not implementing the same strategy. This is another reason as to why loyalty programs are important for your company’s overall reputations. It literally makes your customer happier when they engage in a business with your company.
When we take a look closer to above article, we can get the conclusions that implementing a good loyalty program as a part of your company’s marketing strategy will produce wider success for your company’s growth. This is one of the proven ways of producing better and bigger result for your company’s sales. However, an excellent strategy is needed to produce the best result.
Here at PRMMS Singapore ( https://www.prmms.com ), we offer the best quality services and strategy for your company to figure out what best loyalty programs you should implement.
With 50+ years of accor history, 6.300 employees operating in 42 different countries and is Euronext Paris Stock Listed Company with 5 billion Euros Market Cap, PRMMS Singapore promises excellent values to offer. Our services are spreading around Customer Relationship Management (CRM), Partner Relationship Management (PRM), Incentives & Rewards, Data Analytics, and Ticket Max that has more than 30 clients from big companies all over the world (Including Toshiba, Microsoft, Motorola, IBM, Lenovo, Casio, etc). If you want to learn more about our products and services, you can visit https://www.prmms.com/ourservices.html .