Loyalty programs are nothing new, from simple punch cards to sliding magnetic stripe cards, most loyalty programs involve some kind of physical card you carry around all the time. Customer loyalty is a major component of any business especially when considering the fact that it costs 5 times more to acquire a new customer than it is to retain a current one.
Traditional Loyalty Program Benefits
For years, loyalty programs have been a proven way to increase repeat customers, increase customer spend, and ultimately increase sales. Businesses have seen consistent returns and continue to pursue some form of customer retention or loyalty initiative. Customers enrolled in loyalty programs become more engaged and build a stronger relationship with businesses that reward them for their loyalty, as they feel the business is giving back to them resulting in an increased perceived value from the customer. Traditional examples of loyalty program setups include “Buy 10, Get 1 FREE” and “Spend $50 and get $5 back.” These linear, standard, and non-dynamic rewards are a very simplistic and basic program. With today’s technology, businesses should look at rewards programs differently, and be more proactive vs. passive to leverage the power of their programs. Continue reading Supercharge Your Loyalty Program