The loyalty program is defined as a set of strategies with the objective of retaining customers who make up the active base of companies, using offers of rewards and discounts in exchange for frequent purchases . According to “The Beginner’s Guide To Customer Loyalty Programs” , loyalty programs can increase the customer retention rate by up to 5%, and can generate a profit of up to 95% for companies. In addition, consumers who are part of loyalty programs agree that this solution increases the possibility that they will buy from the company again. And there are more numbers that show how loyalty programs have gained relevance for businesses: 76% of consumers believe that loyalty plans are part of the relationship with brands; the chances of making a new sale to existing customers increases by 60-70%. What is loyalty program? Companies that work in B2C know how important it is to be able to retain customers.
What are the principles of a loyalty program
In addition to simplicity and practicality, a good loyalty program should focus mainly on providing well-being to customers. Facilitating membership and promoting the use of discounts, actions and partnerships. With retail companies are some of the principles of managing your own loyalty program. A well-structured Iran Phone Number List business attracts customers and the loyalty program delights and brings advantages. The sum of these two factors becomes significant to the point that the customer pays to enjoy more benefits. Building and maintaining a close relationship with customers makes your brand. A priority and reference in the field, promoting customer retention. Simplicity Offering a simple path is essential to earning the appreciation of your customers. Thus, facilitating the registration process and promoting a less bureaucratic joining process contributes to a pleasant and less complicated experience for users. Objectively clarify the rules and terms of membership, for that, be succinct and simple in this part of the process.
8 types of loyalty plans applied by companies
There are different models of loyalty plans that can be applied in companies. It is possible to create a gamification system, in which customers grow in range and benefits, for example. The best DX Leads thing to do is to understand the profile of your consumers and your company in order to offer a program that is compatible. Points program The principle of this program is quite simple: the more a person spends, the more points he accumulates to make an exchange. When the person makes a new purchase, they earn a certain number of points. This score can vary depending on the product/service consumed or how much the person spent in total. The company also determines the package of products that can be consume with the score. The exchange is carry out according to the person’s interest. Paid Program or VIPs Program Paid programs give customers a feeling of exclusivity. That’s because they need to pay a fee — monthly or yearly — to get in. This program is unlikely to yield results if the company does not have a solid customer base.