Loyalty programs are a fantastic way to nurture your customer base and promote continued engagement, but did you know that they can provide some unexpected benefits to your marketing strategy? The popularity of the member program is no accident. Businesses all over the world are taking advantage of the benefits that come with having a well-structured loyalty program that promotes customer loyalty and ultimately achieves marketing success and improved sales. So why should you consider a member program for your retail store? Check out the top seven reasons member programs can lead to retail success, below!
1. Increase Customer Loyalty
This is probably the most obvious benefit of a loyalty program, but it still merits a closer look. Customers love being rewarded for their shopping habits and are more likely to provide repeat business if they think it is worthwhile to collect points in your system. As a rule, repeat customers are more profitable, easier to sell to, and less likely to be put off by your prices. Establishing and nurturing a customer base with perks and insider highlights will ultimately strengthen your reputation as a retailer. Not only that, it will set you apart from competitors that do not participate in such programs, making your business more desirable to consumers.
2. Use Customer Engagement as Market Research
Believe it or not, member programs can actually provide you with quite a lot of vital market research. Though it takes some trial and error, you can eventually piece together which incentives have the highest return rate and what sort of rewards generate little to no interest. You can use this information to determine where your greatest demands lie and work to make your business that much more enticing to customers. When you meet their demands, they will come.
3. Maintain Customer Interest with Targeted Marketing
Yes, offering rewards after a certain expenditure is a great way to implement a member program, but you can also increase interest by engaging your customers’ love of a good bargain. Using your loyalty program to distribute VIP coupons and insider deals gives your customers an edge of “inner-circle”, “cool kid” mentality. Again, you can easily target special deals based on market research information obtained through careful tracking of purchases and the success-rate of particular offers.
4. Boost your Growth
It has been proven that member programs boost company growth and revenue. According to one analytics group, loyalty programs can increase a given company’s brand by 20%. Forbes magazine also determined that it can cost up to seven times more in marketing expenditures to acquire new customers, than to appeal to existing customers. Offering a loyalty program is an easy way to interact with potential customers as soon as they enter your store. Offering a sign-up reward will lead to a boost in sales and, hopefully, a higher customer retention rate.
5. Increase Sales By Introducing Rewards
By offering rewards in the form of coupons you greatly increase your chances that customers will spend more. Offering a percentage off a full purchase or X dollar amount off any purchase of Y or more is a huge incentive for customers to buy something more expensive than they may have been planning. Remember, nobody can resist a good deal.
6. Cheaper than You Might Think
Creating and maintaining a member program isn’t as expensive as, say, a new marketing strategy to attract new customers. The possibility for creating and retaining business at a higher rate as well as the potential for increased revenue are great benefits that far outweigh the initial start-up cost of a member program.
Once your system is up and running it effectively keeps its form. Though it will require updated offers and information, once its basic format is established it is essentially self-sustaining.
Member programs offer so many benefits for retail success… Isn’t it time you made the switch?
If you would like more information about implementing a new member program, please do not hesitate to contact the professionals at iGift. We specialize in customizable rewards programs built for retailers and restauranteurs. With creative phone-based technology that is easy to use and easy to personalize, we offer the very best way to manage your memberships and acquire new memberships. Kick-start your membership program, today!