Getting a user make a first purchase from you is very important, but it is the future purchases from that same customer that make the business model successful. The common and popular way that tends to yield good results is—if done the right way—the Customer Loyalty Program.
Simply put, a customer loyalty program is a relationship between a buyer and a seller, which is designed to make the business steady with repeat purchases and brand engagement. If we look at a few stats and studies, the benefits from Loyalty Program have been staggering.
According to a study by Accenture:
- 66% of US consumers spend more on brands to which they are loyal
- 55% of US consumers recommend brands or organizations to which they are loyal to their family and friends
- Customers today find financial rewards (61%) and programs highly tailored to their needs (58%) quite enticing
Adding to this:
- Fifty-seven percent of consumers want to engage with their loyalty programs via mobile devices, but 49% don’t know whether there is an app associated with their loyalty program
It is a no brainer that all loyalty must be rewarded. So why should you not reward your loyal customers? Studies on Loyalty Programs have only shown benefits and great results. An example of this is the growth a widely popular coffee chain witnessed – a whopping increase of $2.65 Billion in revenue after launching their Loyalty Program.
Here are some more reasons why you should launch your own Loyalty Campaign:
- Average order value increases: When a loyal customer is rewarded for his purchases, they not only buy more but also spend more to collect more loyalty points
- Get activities carried out that are otherwise difficult: Getting a customer to do certain activities that they don’t see their direct benefit in can be very difficult. Examples of such activities are getting customer information, getting feedback, reviews, recommendations etc. Using a Loyalty Program, you can reward customers for fulfilling these activities and provide an incentive to them. A win-win situation for both
- Rise in Conversion Rate: Customers are motivated more by seeing their rewards – and that helps boost the conversion rate
- Gain Social Recognition: Get your customers to start talking about your products on social media and reward them with loyalty points to do it
- Influence Product Selection: Offering more points on products that have high margins or products you wish to promote boosts sales of the products you desire
Why should you fall back? Time for you to get on the bandwagon and get started with the ready-to-use Loyalty backend API in our App42 Platform which lets you quickly launch loyalty campaigns.
Let’s get started:
- Create Tiers that segregate your Customers:
This is the process of separating your customers based on the points they have received based on the purchases they have made.
The more points a customer has, the higher tier he is in.
- Proceed to creating Packages:
This is a collection of Products that you predefine and allocate points towards. If your customer buys the packages you create, they receive the allocated points.
You also have the option of picking a cart amount and allocate points based on amount you choose.
This is a visual display of the points you allocate to each product along with product details.
The analytics will tell you important metrics like top earners, top redeemers, total users to give you an overview of your loyalty program.
Compare Earned and Redeemed Points
Interesting? Register here to get started 🙂
In case you face any difficulties or have any more questions, we are always here to help, just write to us at firstname.lastname@example.org