In today’s competitive business market, gaining customer loyalty is vital! Many eCommerce firms follow the business strategy of rewarding loyal customers because they know that loyal customers who buy repeatedly are more profitable than the ones that buy once. Companies that have not implemented loyalty programs for customers are the ones who are losing sales to their competitors. To keep your customers engaged with your business and give them a good reason to come back again after their first purchase, you need a loyalty program, which should be a part of your web development process. Let’s find out how an effective loyalty program can help in increasing retention rate and customer lifetime loyalty in your business!
Meeting Customer Expectations in Competitive Business World
Customers have no time to fight over bad experiences and just one bad experience can drive them away making them choose your competitor over your brand. With a greater number of choices today than ever before, it is important to know that you are serving customers who want speed, quality, value, and most importantly, convenience at a fair price. To meet customer expectations, here are some of the demands that every business must be aware of-
• Rewards for Loyalty
Having loyal customers not just mean repeated purchases, which is why it is becoming essential for companies to reward them for their activities. Without a loyalty program, customers might lose interest & jump to other brands offering better rewards for the purchase.
• Personalization is Essential
Offering rewards that are customized just for your customer is essential to make them feel valued, which can be through discounted products on birthdays or anniversaries.
• More Value for Time
As customers are becoming busier than before, saving time is their utmost priority. Offering products are not enough to engage customers, brands must simplify the experience without wasting efforts & time.
Your business should incorporate a loyalty program that provides what customers are looking for with authentic recommendations aligned with their interests.
Why Every Business Needs Loyalty Programs for Customers?
Every business’s goal is to win the hearts of their customers and using a loyalty program can help in retaining loyal customers that will add more value to business growth. The program is specifically important for online retailers having many competitors and those serving price-sensitive customers.
Retain Old Customers
Research says the more than 60% of companies believe that the use of loyalty programs has been the most effective way to enhance sales. Maintaining existing customers is a better option than making the new ones, which is 5 times costlier than retaining old ones. The minimum of a 5% increase in the retention rates can increase the profit margins with 25-95 percent.
Frequent Customers Boost Sales
Your loyal customers are the ones that buy repeatedly from your brand because they love what you are offering for them. Having a loyalty program can help you reward your frequent customers that contribute to more than 60% of annual revenues.
Lower Advertising Costs
Once your business learns who are your best customers, they can be your brand influencers that help in bringing in more new customers thereby reducing marketing costs with lesser need of advertisement. These new customers are more likely to become repeat customers.
Keep Business Ahead of Competition
With the help of a well-organized customer loyalty program, small and medium-sized firms can remain competitive in the online marketplace that is mostly dominated by big brands. Your competitors cannot take away your customers, if they are satisfied and happy with your offerings through the loyalty solution.
Increase Customer Lifetime Value
A loyalty program plays a main role in increasing the frequency of purchase made by your customers as it keeps them engaged to come back again and again. When the customer frequency increase, the lifetime value of your customer automatically rises.
Acquire New & Lost Customers
Though the program is meant for retaining old ones, it also helps in attracting new customers and wins back lost customers using targeting campaigns with special offerings, discounts, benefits, etc. making them feel valued.
Building customer loyalty for your eCommerce business can be a game-changing opportunity to retain repeat customers leading to a higher purchase frequency and lifetime value. Retaining your loyal customers using a loyalty program is the most cost-effective and beneficial as keeping one customer costs you 3-10 times less than acquiring a new one, depending on what industry your business is in. However, it can be difficult to retain customers with so many competitors offering similar products and services in the market. Get in touch with the expert developers of the leading eCommerce web development company to develop a customized customer loyalty program with the right strategy and structure to level up your business sales.