Philip Harman Benefits of a Customer Loyalty Program
There is a major reason why so many companies have loyalty programs in place, and it almost always boils down to the way they are going to make money through these programs. Some business owners have a notion in their mind that they are going to have to spend more than they would make with a customer loyalty program, but remove this notion from your mind. A small business loyalty program is going to make you money, not reduce your profits.
When you get into the nitty gritty of setting up business rewards programs, we have to look at why they are being created. What is it about these programs that appeals to people? Think about your customers as people who have a choice in where they do their shopping. They could come to your store, online site or establishment, or they could go somewhere else. How are you going to keep them coming to you? Having quality products and services for sale is going to help, but when you create a customer loyalty program, you are giving them an added incentive to do business with you and not any other company.
When a customer hears about customer loyalty programs at a company they already like, they are much more likely to come back to your store to buy something. They will see how they are a certain number of points away from getting a reward, and they are going to want to spend that extra money to see if they can get the reward sooner rather than later. And with the loyalty program in place, you are also getting some free advertising out of these customers, because they will definitely tell their friends and family about the program you are running.
But what about the cost of having a small business loyalty program? Does it make sense for a small business to have such a program? Yes, it does. When you deal with a top loyalty program provider, you are going to get a very good rate on all the expenses related to the program. In addition, studies have shown that the cost associated with getting new customers into your store is around seven times the cost of keeping your loyal customers. With that in mind, you can begin to understand why any cost associated with business rewards programs is significantly less than what you would have to pay to get new people to buy your products.
The ability to create a customer loyalty program has never been easier. Not only are there many great companies that offer assistance to businesses when they want to create these programs, but these companies can also help you run the program. It means you have to do very little in order to keep the program in place, but you are still getting a ton of the benefits – such as increased customer spending, better customer retention and overall business growth. Speak with a top loyalty program provider today to learn how you can take your business to the next level.
