Five Ways Customer Loyalty Programs Reward You And Your Clients

Whether you have an existing customer loyalty program or you’re thinking about creating one, experts generally agree that customer loyalty programs give you an edge. The benefits include retaining existing customers, engaging new ones and enhancing sales. But maybe it’s time to rethink customer loyalty entirely — for what works with today’s customer.

The numbers show that engaging existing customers and increasing the return on those sales pays off, as it costs far more to develop new customers than it does to keep old ones. While in most industries, a small percentage of customers are loyal to a single business, that percentage can comprise a majority of sales.

To engage that loyal customer, you might be surprised to find out that the most successful programs have turned customer loyalty on its ear.

Namely, regularly engaging customers through consistent, strategic communications that “reward” them for their loyalty, either through thank you cards, requesting their valued opinion through customer satisfaction surveys, and so forth, provide the end result you’re looking for.

Among the benefits of customer loyalty programs:

  • Higher sales. Communicating with existing customers keeps them coming back, helps you place your focus where the spending is, and increases the dollar amount these customers spend.
  • Better return rate. When you communicate with your existing customer base, they’ll be more likely to come back — and spend again.
  • Introduction of your business to new customers. Customer loyalty programs can successfully engage new business, as communication touch points can encourage referrals while offering special discounts.
  • Expansion of your profit mix. A customized loyalty program’s communications can help to increase the awareness of other products or services in your line.
  • More information for you. The bottom line of a good loyalty program is that it gives you the opportunity to gather information about your customers’ interests and future plans, so you can respond to their preferences.

At Continuity Programs, we can help you develop a profitable customer loyalty program, and place your business at the forefront of existing — and potential — customers’ minds. We specialize in designing company branded marketing programs. All programs are personalized in your representative’s name that worked directly with the customer, adding the most individualized personal touch to the campaign.