What is customer loyalty program?
Have you ever wonder what customer loyalty program is? Let’s have a closer look at what customer loyalty means and what are the benefits of running loyalty programs for your business.
Simply said, customer loyalty is a customer’s anticipation to buy from the same brand repeatedly. Yet, customer loyalty is not easy to create. Loyalty develops as a result of positive customer experience, customer satisfaction, and the added value for the customer. You need to keep in mind that customers are motivated by their agendas and will be loyal to the business that can meet their needs. If a competitor has a better offer, your customer might take it.
So how do you keep your customers loyal to your business and not running to your competitors? Before we answer that question, let’s have a quick look at a few benefits of maintaining returning customers and why is it more profitable than acquiring a new client.
Why is it beneficial to your business to have a loyalty program in place?
Did you know it costs about 5 to 25 times more to acquire a new customer than it does to keep an existing one? Besides, existing customers spend 67% more than new customers. There’s a lot of data to support the value of sustaining customer loyalty:
- Returning customers spend more often
- Returning customers spend more than others
- Loyal customers are the best tools for word of mouth marketing. They will spread the word and share their positive experience with their family and friends. Word of mouth is more effective at attracting new customers than branded content and advertising
What studioX networks brings to the table?
As we mentioned, the cost of acquiring a new customer is higher than maintaining an existing customer. For that sole reason, the idea of mobilizing your loyal customers to obtain new ones should appear attractive to both marketers and salespeople. Over time, customer loyalty will pay off and grow business faster than sales and marketing. And that’s where customer loyalty programs step in.
Yet, it is approximately 54% of loyalty program memberships stay inactive, meaning that many customers are not using their loyalty programs. It might be because the program isn’t relevant to them. With this in mind, your loyalty program should be designed in a way that your loyal customers can benefit from it. And that’s when our team steps in. Let studioX networks handle your loyalty program. Why spend time and money on marketing your business and not let your loyal customers spread the word.
- Loyalty Program Software License
- Customization of app to brand guidelines ( color and style)
- Loyalty Program App Maintenance & Technical Support
For more details about our services contact us for a consultation or have a look at other services we offer.