Loyalty programs have been a favourite tool of businesses and marketers for a long time. When done correctly they work to give you a competitive advantage, as well as create loyal customers, in a crowded market place.
Walletly makes it possible to create loyalty campaigns within a chatbot, with everything delivered straight to their smartphone via push notification. Here are 4 ways loyalty programs can easily help your business generate revenue.
1 - Customer Retention
The main motive behind any loyalty program is to retain customers by rewarding them for shopping with you. Customer loyalty is based upon familiarity, value and trust. Loyalty programs heighten these feelings by helping to establish numerous positive experiences each time they make a purchase.
You probably know that customer retention has a direct effect of revenue, but you might not be aware quite how much of an effect it has. A business with a 60% retention rate is losing 3-4 times as many customers as a business with an 80% retention rate. Plus, increasing retention by just 5% could increase profits anywhere between 25% and 90%.
2 - Capture Accurate Customer Data
As soon as a customer registers to become a loyalty member their data is captured. Often, this data can give a complete profile of your customers buying habits and preferences. This can be used in multiple ways, but the most successful use it to profile your best customers and tailor your offerings to specific consumers. The more you know about your customers, the more you can tailor offers and promotions to them, the more profit you will make.
3 - Reduce Unprofitable Customers
One of the slightly less obvious pros of a loyalty program is the ability to reduce your number of unprofitable customers. If your loyalty system is well designed it will enable you to easily segment your customers into numerous groups - including profitable and unprofitable.
Customers who only purchase discounted lines, or products on offer, on a regular basis can actually cost a business more money than they generate. A loyalty program can help you reward your more valuable customers, in turn easily retaining those that spend the most money while minimising the amount you spend on your less profitable customers.
4 - Increased Customer Communication
Loyalty programs give you a direct communication channel to your customers. Walletly makes this even easier with push notifications to your customers via messenger and their mobile wallet. This channel can be used to promote or announce anything your audience will find valuable; special offers, new products, reminders to use a coupon before it runs out. The more you communicate with your customers, the more you will build that same feeling of familiarity and trust that makes loyalty systems so successful in the first place.
It couldn’t be easier to create a revenue generating loyalty system, with Walletly. There's no need to create your own membership cards or app. Walletly makes it possible to create loyalty campaigns within a chatbot, with everything delivered straight to their smartphone via push notification.