The rapid uptake of digital services and increase in the quality of online services has dramatically increased customer expectations. The COVID pandemic increased the number of online businesses, but it has also increased the expectations of the customers towards businesses. Simple customer service and common greetings won’t cut it. Businesses have to over-deliver and exceed customer expectations to win more sales. Customers desire a higher-form of relationship with their brands and an engaging experience.
The best way to convey the thought that they are very important to you is to start a loyalty program. Loyalty programs or rewards apps bring in the much-needed customer engagement that brands need to remain socially and financially stable and profitable. The higher engagement will help your business in more ways than one. Here are three reasons why starting a rewards program will irrefutably help your business.
More Engagement for Long-Term Success
The most obvious benefit and reason for a rewards program is its efficiency in securing repeat customers. A competitive, time-bound, gamifying element to your marketing plan will implore customers to engage with your brand. Such elements implicitly demand the customers to spend more and stay in touch for a little longer for a higher reward. For instance, the Starbucks 2016 star points campaign is an excellent example of the same. The start points system granted points to the customer based on the amount of money they spent on each purchase. As a result, customers started to spend a little more than they would to secure a free breakfast sandwich or its equivalent.
A little healthy competition is appreciated by most, and getting rewarded for the little things is makes the business more appealing. It also sets the customer up for a future return without them even realising it. For example, if you are only five points away from a complimentary free sandwich, there is a higher value in returning to the same coffee shop and making a purchase. Moreover, the repeat customer would make the purchase more often as the points have an expiry date.
Business Growth through Word of Mouth
Any business remains viable due to the revenue brought from the sales and customers. Unfortunately, the cycle never ends, and the business is forced to look for new customers steadily. However, more often than not, new customers are easily secured through the old customers. Having a rewards and loyalty program sets your customers into unwitting referrals.
The thought behind the concept is very simple. If a customer likes and appreciates a business, they will undeniably convey the same message to their kith and kin. The potential customer is already prepped for a sale as they have a positive image of your brand. Having a rewards app will not complete the sale, but it will add to your credibility and image. Moreover, the thought of getting potential free stuff is always exciting.
Invaluable Customer Insights Data
Having a loyalty app will undeniably bring in more customers and more revenue. However, there is another advantage to establishing a customer loyalty app. Like any internet-connected proposition in the digital era, the loyalty app will generate data. The data generated will contain invaluable customer demographical information that will help you provide a better experience.
These insights could include the frequency of engagement, the most popular reward, quantity and number of repeat purchases, costliest purchases, etc. These are extraordinary measures to analyse the customer mindset, and a loyalty app will greatly help you achieve the same.
Digital marketing is a vast domain and cannot be reduced to the number of likes you get on your Facebook page. It is much more than sending a simple email to a set number of clients every day. It is a great by-product of the digital revolution that allows businesses to find the optimum angle that will help them convert the most number of customers. Digital marketing, if done right, will appeal to the customer’s subconscious and awaken their innate desires that the sales team can exploit.
Getting a little endorphin rush when you gain an extra point or reward on a transaction is an excellent example of the same. Exploiting the human love for a little competition and using it to market your product will irrefutably bring in more revenue. Understand the benefits of employing a rewards and loyalty program and include these offerings in your current marketing strategy, and watch your brand grow.