Loyalty schemes are an age old tool, but are they currently something businesses should consider? Well, according to recent research over 77% of the UK adult population are using them so why not?* Every business knows that a loyal customer is more valuable than a newly acquired one.
What is the concept behind a loyalty scheme?
The answer is simple – rewarding positive behaviour. Rewarding customers for their loyalty makes customers feel valued.
What are the benefits?
- Improved Customer Engagement – A loyalty program is a great of way of strengthening the bond between a brand and its customers.
- Improves Customer Experience – Being able to access a discount or ‘value add’ significantly improves customer satisfaction.
- Increased Customer Retention – Customers are more likely to stick with a brand that rewards loyalty and are more likely to change their spending behaviour because of it.
- Increase in Sales and Revenue – Customer loyalty matters because repeat customers spend more.
- Creates Brand Advocates – A happy customer is a vocal customer. Loyalty programs improve customer satisfaction.
- Aid in Customer Acquisition – If a loyalty program offers great discounts, it aids in promoting brand advocacy which helps in widening the customer base.
Impact of Customer Loyalty
Customer loyalty impacts all the metrics that are important to running a successful business. If you have happy and satisfied customers, they continue to buy from you, spend more than others, and are more likely to become brand advocates. Keeping customers coming back for more is critical to business success.
*In 2019 YouGov, a market research firm, and Mando-Connect, a partnerships and rewards agency, commissioned the largest ever study into what the British think of brand loyalty. According to the research, 77% of UK adults are members of at least one loyalty programme. 72% think loyalty programmes are a great way for brands and businesses to reward their customers and 59% think all brands should offer a loyalty programme.