Why offering an effective loyalty system is so important
Whatever your business there will be a maximum amount of clients that you are able to service. Loyal customers who return to your business time after time is what will make it possible for your business to grow.
There is a saying that 80% of your sales come from only 20% of your customers.
Below are some further stats that we discovered whilst researching the subject.
* 49% of consumers agree they spend more after joining a loyalty program
just a 5% increase in client loyalty increases the average profit per client by 25%
* 69% of consumers asked stated that loyalty programs influence their buying decision
* 50% of consumers changed their behaviour to achieve a higher tier within a loyalty program
* Restaurant loyalty programs increase visits by 35%
Above stats were collated from online data as of January 2019
Loyalty programs are most effective when your looking to retain customers. In a competitive market where customers can make rash decisions to switch providers or suppliers, customer retention programs can and do make all the difference.
Customer retention isn’t always easy
Sustained customer loyalty programs can see the average customer spend 67% more. This means that loyalty programs aren’t short-term customer retention strategies. The longer the customer enjoys your loyalty program the more likely that person will remain loyal to your brand.
However, many brands say customer retention is their biggest stumbling block. Customers are becoming more and more informed and more picky; they won’t settle for second-best, even if that means switching companies.
As much as 66% of customers say they consider poor customer service as the main catalyst when changing providers. Making it vitally important to ensure you have excellent customer service as well as a great product.
Take action - Now is the time for you to set up a loyalty program
If you haven’t set up a loyalty program already then you are missing out on businesses. 83% of customers say loyalty programs influence them to make a buying decision. Almost any business can implement a loyalty program. Although requiring effort, it's well worth it.
To summarise, loyalty programs help improve brand recognition, increase growth & improve customer service.