Customer Loyalty Program: A Boon to Retail
From shopping malls to individual mom-and-pop shops, customer loyalty is continues to be the apple of the eye. Nearly 80% of retail sales come from 20% of the customers. This means, to keep customers returning, retailers need to help them remain loyal to the brand. Retail managers and owners are looking for new ways to keep their customers happy and enticing them to return. From utilizing loyalty programs to offering discounts to exclusive membership benefits, retailers are keeping no stones unturned in customer loyalty management.
So how does a retailer appease a large segment of the population???
Customer Retention: Not only does a loyalty program provide a practical, hard reason for continuing to buy (the accumulation of points toward a reward, or higher levels of service) but it also provides information about the customers that allows their needs to be met more efficiently and effectively. This in turn makes them more likely to remain customers. Loyal customers are also good for your business because they become your best advocates. They recommend you to others, saving you marketing costs. A loyal customer’s endorsement is more powerful to their friends and family than any advertising campaign.
Acquiring New Customer and increasing your sale: One of the principal reasons to start a customer loyalty program is because it provides incentives to your best customers in order to do more business with you. A loyalty program should attract new customers to the business; how effectively, will depend on how exciting and how valuable the rewards seem to be to the target audience.
Brand Advocacy: Brand advocacy occurs when a customer becomes a brand advocate. They are individuals who have been advised to use your product/service by someone who is already a customer. These can be very meaningful to your business as they provide a direct link to a sale. No additional funding is required to create promotions for this individual and they will purchase without having to be engaged.
Forecasting becomes easy: Having a loyal base of customers makes forecasting in many areas a lot more manageable. The fact that you have regular customers that make repeat purchases allows for you to forecast revenue a lot more easily. Inventory planning becomes less daunting as you can account for regular purchases and thereby you can improve the efficiency and save money.
Getting to know your customer: Loyalty programs put the spotlight on customer behavior. The data generated by a loyalty scheme can offer other valuable insights. It can also be used to win back lapsed customers. These customers are much easier to win over than cold prospects. They know you and you know them, their buying history and where and how to reach them.
Ginesys partnership for customer loyalty program is extremely effective for customer retention and company growth of any organization.