According to the Pareto Principle, an Italian economist, only 20% of the variables control 80% of the situation. From a business perspective, 20% of high-value customer groups bring 80% of the profits. So how do you ensure that these high-value customer groups remain loyal to your business? The answer is to have a good customer loyalty program. Let's take a look at the benefits of the five major customer loyalty programs:
No need to engage in meaningless price wars
With the recent development of technology, customers can easily list of australia whatsapp phone numbers compare the prices of the same products online. When a price war occurs in an industry, it will have a negative impact on the company and the market. How can you improve your competitiveness without relying solely on price advantage? Simply rely on service to win, such as service quality, after-sales service, etc. A good customer loyalty program, such as a membership system, can attract and lock in new and old customers to spend more in your company. It relies on emotional cards, especially when customers are choosing products .
Target customer base
A loyal customer will spend 67% more than an ordinary customer. This means that having a loyal customer can bring more business benefits. A business with a membership system will retain its customer base better than a business without a membership system.
Increase customer lifetime value
Customer lifetime value (CLV) refers to the total revenue that each buyer may bring to the company in the future. Through a good customer loyalty program, it can effectively improve the customer experience in purchasing and using products and services, thereby increasing corporate profits.
Build relationships between businesses and customers
When customers choose products, they often choose brands they trust and like. A company can establish good relationships with its customer base by showing its care and consideration for the customer base through customer loyalty programs. For any company to achieve a good relationship with its customers, it must identify the needs of the customer base and improve satisfaction.
Create a brand spokesperson
When your company has a certain loyal customer base, they will not only consume in your company but also recommend it to their relatives and friends to consume together, thereby increasing profits. Use the "referral program" in the customer loyalty program to allow the referrer to receive rewards, and the referee can also receive the initial reward at the same time, and together they can receive rewards and consume in your company. Word of mouth is one of the best marketing methods because people will choose to trust those they are close to.
Are you tempted by so many benefits? Whether you have an idea or not, our professional team will help you start your own customer loyalty program to retain your customers and increase your business profits! Contact us now!
