How to Increase Sales Using Customer Loyalty Programs
Numerous strategies help you to boost your business. The conventional methodologies are capable of yielding the result you seek, but at the same time, a different approach is equally important.
If you want to boost your business, then you will have to ensure that your clients are happy with the services they receive.
If you perform a customer survey, then you will come across the fact that they have some loyalty cards and reward cards in their possession.
Brands have started to make the use of loyalty programs to gain clients and customers. This idea increases the sales figures, and at the same time helps in boosting business globally.
One of the most common examples of customer reward schemes is witnessed across the airline’s industry. The “frequent flyer programs” have helped to boost airline sales to a significant level, while the officials have been able to track the flying patterns and travel habits of individuals in a better way.
This proposition helps in the better business acquisition and brings forth a repeat pattern. The consumers gain trust in the business since they are subjected to some membership and reward benefits.
The membership loyalty programs have seen enormous growth in the US. Statistically, the figures are astounding, and the growth pattern has been exponential for a long time.
- The annual growth rate in the U.S alone has been estimated to be around 26.7% annually.
- Surveys confer the fact that more than 80% of the consumers are likely to visit businesses that provide for loyalty programs and bonuses.
- Loyalty programs mostly contribute to repeat business figures. These programs have been found to retain over 70% of the existing customer base for over 90% of the businesses.
- It is also estimated that successful loyalty programs can drastically increase market share value of a company by as much as 20%.
Comprehensive Effects of Reward Schemes on your Business
Loyalty programs can significantly help to boost your business. A compilation of such factors is listed below.
1. Referral Points
Nowadays, referral points are among the best ways to gather more customers. Primarily, the customer is benefitted when they introduce others to the shopping site. They will be rewarded with points, which they can use to make purchases or gather discounts out of them.
In addition to that, the business also benefits comprehensively. The customer base increases at a ratio of 1:2, which accounts for double profitability. At the same time, it allows you to unlock more business potential.
In a more straightforward term at the referral of one, you get to sight more customers. A chain system is eventually established, which provides you with better business prospects regarding client acquisition.
2. Package Deals
Package deals are great ways to sell multiple products as a single unit. You introduce offers where the person pays a consolidated amount for a bundled package. In this way, you are positively affecting the satisfaction levels of your customers.
They walk out of your store as a happy person, knowing the fact that they have a hold of a good bargain.
This approach also helps in enhancing the valuation of the product that you have just sold. Therefore, this is a great way to increase sales and acquire more customers at the same time.
3. Purchase Points
Purchase points have long been the purest form of customer loyalty programs. In fact, since the end of inception, purchase points have helped in enhancing sales by as much as 28% for incipient businesses.
The concept of purchase points is elementary. In here, the customer buys something and is rewarded for the purchase in the form of points. The customer can later redeem these points for availing discounts or other special offers associated with another purchase.
Most of the premier brands have exclusive collections of merchandise available at their stores, which attracts customers. They provide for purchase points on such merchandise, which can be redeemed later.
The approach mentioned above has an indirect effect on the business. It helps in client retention since they are intrigued by revisiting the store to avail the offers on the purchase points.
The aspect of reward points resembles a symbiotic relationship. The client feels they are rewarded, while the business is equally benefitted.
4. Discount Coupons
Customer satisfaction is dependent on the experience that they have at your store. To enhance the background, you could add discounts to selected merchandise. These discount offers will, in turn, encourage the existing customer on revisiting your store. They will feel rewarded and assisted in making more purchases from you.
You can decide to add traditional discount offers on selected merchandise or reward your customers with discount coupons. It has been estimated that nearly 70% of customers feel better when they are provided with discount coupons.
Every customer is attracted towards deals that will help him or her gain more out of what they shell out. Thus, when you provide them with discount coupons, the customers feel enticed with the offers. This idea compels them to revisit your store, and make more purchases in the future.
5. Premium Membership Cards and Loyalty Cards
Every business has potential clients or customers. Mostly, these customers visit your store frequently and make purchases. It is high time that you start rewarding them with loyalty cards and membership cards. These loyalty cards will enable your customers to avail of offers on their next purchase.
Now, how does it help you boost your sales? Well, the clients feel happy to be appreciated and are thus inclined towards revisiting your store. They think that the loyalty cards are a matter of pride.
It compels others to visit your store as well since they also want to avail good offers on the purchases they make. Thus, you can retain a good customer base and at the same time enhance it as well.
A Final Thought
Using simple yet effective ideas, you will be able to boost your sales to an absolute limit. All that you need to do is be creative, and provide your clients with what they are anticipating.