Gaining new customers and working to retain loyal ones are important pillars for any business.
The key is maintaining a good balance between targeting new consumers who will value your products or services, while also showing your current consumers that their support of your business is appreciated and rewarded.
However, businesses often make the mistake of investing more in new customers rather than putting effort into retaining existing customers.
On the other hand, businesses that attempt to appeal to their loyal customers with a loyalty program often do so with a scheme that doesn’t meet the expectations of their customers.
Statistics show that while many brands tend to offer free membership plans, 77% of transactional-based loyalty programs fail within the first 2 years.
So how can you provide a loyalty program that will not only keep the interest of your customer but also demonstrate real value?
We believe that a paid loyalty program could turn the tide on your customer retention - and here are 5 good reasons why.
1. A paid subscription will fund your loyalty program’s services
By having your customers pay for an exclusive loyalty program, the revenue gained will be able to cover your expenses for the service. This cycle creates a healthy ecosystem, as long as you are providing the right value for your consumers.
There are many platforms that can help you achieve this, but it’s important to choose the best one suited for your business.
2. A paid subscription equals more valuable perks
With the payment received from your customers, you can allocate part of those funds to subsidize rewards that may not otherwise be possible with free subscriptions. These payments can also serve as additional revenue for your business.
A free membership could also be imagined as having lesser value in consumers’ minds, and this mentality could come at a cost to your revenue.
Spending money on a loyalty program that simply does not work is a waste of your hard-earned finances, your staff’s effort, and your valuable time.
3. A paid loyalty program offers better reward flexibility
Regular loyalty programs usually offer rewards in the form of their own products and services, but with a loyalty service platform that caters to a network of like-minded businesses, you’ll be able to offer your customers a wider range of rewards in a seamless partnership with other relevant brands.
For example, a coffee shop may limit its rewards to just 1 coffee or dessert after a purchase of 10.
With a paid loyalty program, you can do away with purchases and implement a point-based system instead, offering even more exclusive prizes to loyal customers - such as spa days, hotel stays, and more.
4. A paid loyalty program supports seamless technology integration
Solution providers usually offer integrated API for most PoS systems. This technology can be especially useful for chain stores.
If you have multiple retail locations, you can view the progress for loyalty programs at each store and run all of your loyalty campaigns from a single platform.
With a competent provider like Eber, your rewards can also be automated so none of your customers are made to feel like they have been forgotten.
5. A paid loyalty program connects customers to your brand with a user-friendly interface
While there are multiple platforms to achieve this, a tech-forward provider will supplement your loyalty program with an easy-to-use, consumer-facing app.
This tool will allow your customers to redeem in-store or online rewards, view real-time progress of their point collection, and access personal membership information.
Your loyal customers deserve this level of care and attention, and they will be more likely to tell others about your program if treated well.
As you can see, there are many benefits in implementing a paid loyalty program. It creates value for both your company and your customers.
Are you looking for a paid loyalty program that will understand the needs of your business?
Contact Eber today and we’ll help you discover the best solution for your customer base.