This era is more of the internet where you can find new promising websites customarily offering enormous offers to attract buyers. You can check high competition among websites to drive sales, acquire new customers, and retain existing customers. By retaining existing customers, you can ensure steady revenue, enhance sales, create brand value, and foster long-term relationships. Customer loyalty programs are one of the effective strategies that always work in retaining existing customers. So, let’s explore the concept of customer loyalty programs and the process to implement them.
What is a customer loyalty program?
Customer Loyalty programs are part of a marketing strategy that helps you to create and enhance a bond between your brand and existing customers. A well-designed customer loyalty program ensures a strong connection between your brand and buyers. It influences them to purchase through your store rather than a competitor. You can offer special rewards, customized experiences, and unique offers that motivate customers to return to your store and remain loyal to your brand.
How to design loyalty programs?
To design effective loyalty programs, you need to consider a few things including the brand image, brand value, identifying your customers’ preferences, choices, needs, and buying patterns. It will create a structured program that should be informed through different communication channels to keep your customers informed and updated. Simultaneously, you can create a program that shows how customers can earn rewards like referral programs, event participation, or social media engagement.
How Customer Loyalty Programs Are Beneficial For You –
Customer Loyalty Programs reward loyal customers and help to build trust between the brand and buyers. It can be beneficial for several reasons including repeat purchases, customer retention, developing brand loyalty and trust, increased customer engagement, and targeted marketing.
Best Customer Loyalty Programs That Always Work-
The primary goal for any successful business is to attract new customers as well as retain new customers. Although, attracting new customers is easier than retaining existing ones that can be encouraged through different loyalty programs.
1. Point-Based Reward Programs:
Point-Based Reward Program is one of the most implemented referral programs that work on the principle of collecting points while making a purchase. Buyers can redeem these collected points for various other benefits. The point-based reward programs encourage customers to use the brand’s platform to check their points, make new purchases, and get discounts through these points. This reward program is very popular for businesses that promote short-term frequent purchases. Example – Shopsy, Flipkart, Myglamm, and Smytten.
2. Membership Programs:
Membership programs are exclusively designed for loyal customers to reward them with premium offers and benefits in exchange for membership fees. These programs offer benefits like early access to sales, free or early delivery, dedicated customer service, and specialized offers. An apt example is Amazon providing special services for its members.
3. Referral Programs:
Referral programs are one of the most powerful marketing tools that help to acquire new customers, enhance sales, and foster customer loyalty. These help customers gain more points or wallet amounts if they refer to someone. Most businesses use referral programs to market mobile apps, products, and services. Red Bus, CRED, and YourQuote are examples using referral programs.
4. Subscription-Based Loyalty Program:
In subscription-based loyalty programs, customers pay upfront and subscribe to products or services. The company provides exclusive benefits to customers, special discounts, and customer support on priority. Some names to mention such brands are Flipkartplus, myntra, and Bigbasket Smart Bachat Club.
5. Cash Back Loyalty Program:
In the cash-back loyalty program, customers are rewarded with cashback of some percentages of their total purchase. These earned cash back may be earned in the form of wallet amount, store credits, used for future purchases, or may be transferred to a bank account. Customers can earn more cashback while making additional purchases. Paytm is the best name to mention here.
By implementing the above-mentioned customer loyalty programs, you can retain existing customers by attracting new ones. The thing to ensure is that the programs should reflect your brand image, brand value, and the preferences of your target audience. You need to always be ready to work on customer feedback and keep enhancing your marketing campaign. For your marketing campaigns, you can gain financial support through the RBF. To know more, click here.