4 Reasons Why a Loyalty Card App Will Improve Your Business

Mar 1
customer loyalty app

4 Reasons Why a Loyalty Card App Will Improve Your Business

Much of the content you see online regarding how to increase profits or how to promote your business focuses on “how to get more customers”. The power of customer retention and loyalty is often understated or overlooked.

Most people associate business growth with the concept of “broadening your horizons”. But what happens to your existing customers?

A brand that truly appreciates the value of having a strong customer base will ensure that their existing customers are as pampered as their new customers are, through mediums such as customer loyalty programs. Failure to do this results in one-off customers, which in the big picture isn’t a sustainable business model.

A good example of an effective customer loyalty program is a loyalty card app. This involves creating a digital version of your traditional punch card system which includes useful and relevant information about your customer such as demographic, purchase history and spending habits.

Given that customer loyalty programs are consistently growing in popularity, here are four key reasons why a loyalty card app will improve your business.

1. Customer data helps achieve targeted advertisements

Knowing your customers is essential to creating an effective marketing strategy, and who knows your customers better than themselves?

Consider a cheesy TV commercial about vacuum cleaners, versus a targeted email promoting specific housekeeping products to you personally based on similar or related products you’ve purchased from that company before.

While the former advertisement adopts a “one size fits all” approach, the latter is far more likely to encourage you to spend more money with that business. Why? Because the targeted email method is using crucial information about each customer’s preferences and spending habits to better customise its advertisements.

This is called “personalisation”, and it is a very effective marketing strategy. In fact, a 2017 study found that 59 percent of consumers who experienced personalisation say that it significantly influenced what they purchased.

This is why collecting the right information and gaining customer insight is vital for your marketing strategy. Ensuring that you are asking your customers to provide the right information will help you personalise offers (An ecommerce development company or even a magento development organization can help you to formulate the right questions to ask).

This is an indispensable tool for allowing businesses to execute the next point…

2. Customer Engagement

Digital loyalty programs open up the lines of communication between the consumer and the business, which in turn allows the business to offer exclusive deals, birthday discounts, friendly reminders via SMS and Push Notifications and other offers which help build the relationship.

This kind of relationship with your customers is invaluable to better understanding the strengths and weaknesses of your business model thus improving your business to be more appealing to your loyal customer base.

3. Increased purchases through impulse buying

There is a thin line between making educated recommendations and encouraging impulse buying. If you’re a regular shopper, chances are you’ve fallen for this at some point yourself, either at the check-out in a physical store or online.

If you’ve just spent $500 on a new smartphone, splashing out an extra $50 for a designer phone case doesn’t seem like as big a deal compared to if you were shopping for a case a few weeks after purchasing the phone, and you’re comparing that $50 designer case to a simple $5 standard case.

This kind of impulse purchase is something that can only work effectively when you have adequate information about your customer.

4. Increased number of referrals

The most trustworthy advertisement is a word-of-mouth recommendation from a peer. This isn’t to say that standard marketing methods aren’t effective, but generally people will believe promotion of a business more when there is nothing to be gained from that person’s endorsement rather than paid advertisements or sponsors… especially among millennials.

A recent study from Kissmetrics found that nearly 90% of millennials will favour recommendations from friends and family over trusting a brand’s advertisements and promotions of its own product.

And when do people promote a business of their own freewill? When they are extremely satisfied by it and feel appreciated – a good customer loyalty program encourages your customers to tell their friends.

To sum up, perhaps in the search for improving your business and increasing profits, it’s best to look to your existing customers rather than putting all your energy into trying to attract new ones.

With an effective customer loyalty program strategy, you can keep your existing customer base happy and attract new customers as a result.

Want to try our Loyalty App for your business – free of charge? Well you can! We offer a free 30 day trial for all new subscriptions. Sign up here.


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