There has been some controversy among loyalty programs and cashback services among business owners recently. While some argue that these programs are highly profitable as there is a lot to gain, some think that the effort and resources put into these programs do not justify the results as the end results are usually less than desired. Some are also of the opinion that brands do not need to put a portion of their profits into these programs, regardless of how little it might be, as they will make sales eventually.
Experts at promocodius.co.uk have considered all of these schools of thought as they study trends with loyalty programs and different sorts of cashback services. However, they do not share the same opinion with brand owners who do not believe in these promotional efforts judging from the studies and analysis conducted. On the contrary, experts believe that most brands are not putting enough effort into their promotions as they have even more potential than most people know.
According to studies by Emarsys, devoted clients spend 67% more on goods and services than new ones. Therefore, even if they might only account for 20% of your audience, your most devoted clients can provide up to 80% of your revenue.
Of all the benefits of these programs, many businesses are only aware of the ability of these programs to:
- Effectively increase sales
- Attract new patrons
- Push slow-moving products
- Increase customer loyalty, etc.
However, using these programs for only these known reasons is very self-limiting, as they have the potential to do more. The end goal of every brand is to make sales, and many factors are involved in that. However, some equally important aspects can determine a brand’s success or failure, and these loyalty programs also come in in these aspects. Here are some of the potential uses of these programs, according to Promocodius experts, that brand owners are not exploring:
Enhancing Quantity And Quality Of Customer Data
Selling is not just what a brand should focus on, especially not in this century. Customers have evolved from accepting whatever is thrown at them to demanding exactly what they want. If you are not providing this, staying in business might be difficult, as other brands will provide that and more.
Through these loyalty programs, getting more data about your consumers is significantly easier, which can potentially be used to serve them better in the future. This way, brands will be able to continually improve how they serve these consumers and personalize service to each of them so that they find themselves coming back every time.
Consumers’ expectations are only exceeded, on average, by 19% of normal customer service interactions. Hence, you have a greater chance to exceed your competitors and also beat your consumers’ expectations with these programs.
Better Customer Engagement
Loyal members usually have the highest level of engagement in a brand’s activities. By offering them loyalty points and programs to suit their needs repeatedly, they have become very loyal to your brand, and it will take a lot for another brand to whisk them away. These customers will be the ones that support your brand in any situation and buy your new products even if they do not know what to expect because you have built a certain level of trust, and they will vouch for your brand in any place. This is the type of customer that offers your brand a lifetime value and will keep you in business in the long run.
Client interaction is a great way to keep a customer loyal. According to Acquia statistics, two-thirds of customers worldwide have some kind of brand loyalty, and 59% of clients do not change their brand preferences for an average of 10 years. So, loyal customers are the best investment in the future of your business!