What is a customer loyalty program? Well, it depends on whom you ask.
To the customer, it’s a chance to get rewarded for doing business with your company. To you and your company, it’s a chance to enter into a deeper and more engaging partnership with your customer. What does this “partnership” entail, and why should every e-commerce business offer a customer loyalty program? Here are the bullet point basics:
- Loyalty programs = loyal customers.
Engaging your customers in the rewarding partnership of a loyalty program shows that you respect and appreciate their business. This partnership strengthens your customers’ trust in your products, loyalty to your brand and willingness to continue purchasing from you.
- Loyalty programs = lots of referrals.
When a customer gets excited about something, he or she is going to talk about it. A customer loyalty program gets your customers excited about doing business with you, which makes them happy to share their experiences with friends and family and spread the good word about your company.
- Loyalty programs = longer stay & loftier pay.
A customer might poke around on your website for a little while, but — let’s face it — attention spans are short these days and website visitors are skimmers and scanners. When you offer perks, benefits and special incentives, your customers are going to stick around on your website longer. And not only are they going to spend more time on your site, but they’ll also spend more money. This way, you’re increasing sales without having to drastically increase traffic.
- Loyalty programs = lead on information.
A partnership is all about give and take. You give your customers rewards and premium service, and in exchange, they do business with you. But that’s not all. A good reward program ensures that your customers are supplying information about themselves. With their contact information, you can add them to your database, email lists and other campaigns — sending them special deals, new information and, most importantly, keeping your brand at the forefront of their minds.
In addition, a good loyalty program will be able to track and assess your customers’ detailed profiles, from demographics to purchasing trends. This way, you’ll be able to modify your programs, processes and offerings to match your targets’ buyer behavior and better serve their needs.
To learn more about implementing an effective customer loyalty program, here’s a free tip guide.