Some companies think that customer loyalty schemes are out of date and have no place in modern online shopping. However, the fact that more people than ever are using coupons and loyalty schemes shows that it is how you use those schemes that are the key to success or failure. So, why should your company consider introducing its own loyalty rewards scheme?
Improving Customer Loyalty
Setting up a customer loyalty scheme is still one of the best ways to create customer loyalty and improve customer retention.
Most shoppers use coupons or rewards while they are shopping so there is certainly a need for them out there. However, it is the way that you set up and deliver your loyalty scheme that will determine how well it will be used.
You want to find out what your customers value and try to use those things as rewards for shopping on your website.
As well as creating brand loyalty, setting up a loyalty scheme can also increase your sales if you add the right elements.
One way is to set up a reward so that your customers earn points with every purchase. If you make the rewards achievable, then there is a good chance customers will use them.
You can also add tiers so that the more people spend, the higher the reward points. This adds the incentive to achieve higher points.
Repeat Business is Important
Companies want their customers to return if possible and will work hard to get that repeat business. Because it is costlier to find new customers than retain existing ones, a loyalty scheme is a great way to keep customers without impacting your budget.
There are several rewards that can encourage repeat business such as buying four to get the fifth free or building up points.
Whatever way you choose, it is important that you focus on what will make your customers want to come back time and again?
Physical or Digital Card?
There are arguments for the use of a physical card and a digital one. While many people are now shopping online, it can be possible to have a digital version of the loyalty card for website transactions.
Having a card in a wallet or in a pocket can be a good way to remind someone that your brand is around.
However, you should probably not rely on just a physical card as many won’t want to go to a store just to get a discount or reward.
If you are thinking about being a sustainable company, then using plastic cards might not be a good idea. You can likely find some sustainable alternatives instead.
Overall, there are a plethora of reasons why your company should consider introducing its own loyalty rewards scheme. Loyalty cards can be an effective way to boost your brand image and create loyal customers. If you can develop a reward scheme that gives reasonable rewards that are achievable, then you have the potential to create a loyal fanbase. Don’t forget to use social media to help you spread the word about any new loyalty scheme.