Rewards and incentives are used by many companies to attract customers. This benefits both the company and the consumer, particularly because a loyalty program can also help maintain a customer base – an important aspect for any company.
There are 5.6 million businesses in total in the UK, a rise of over two million in 20 years, so having a successful strategy for retaining customers is imperative. Loyalty programs are one way of creating a brand USP.
But loyalty programs often have a bad reputation. Businesses make the mistake of thinking that they’re tricky to use and manage and that customers are not especially encouraged by such incentives. Here we’ll take a look at some of the myths surrounding loyalty programs and the reasons why they can be great for your business, whatever industry you’re in.
This is not necessarily true. Yes, there will be some cost involved in offering rewards, especially with incentives such as money-off, points, products, or any other cash-based offer. But a loyal customer, encouraged by a reward program, will likely spend more meaning a greater return on your investment (ROI).
Incentives don’t always need to be based on financial rewards either. Consider offering useful content such as tips or guides or giving them access to pre-launches for new products.
Not true! In fact, it’s often easier to start small, see how your customers engage with your reward system, and expand according to your acquired data. So don’t wait to start your loyalty program – your customers are likely to be impressed with being offered incentives, particularly if you’re a new business.
Building your brand in this way means your customers will then pass the news onto many other potential consumers. Which equals a win-win situation for everyone!Also read: What Is Forex Trade? 5 Untold Forex Trading Benefits + Expert Tips For Higher Forex Profit
Not quite. Setting up a loyalty program means ensuring all your employees know exactly what it means for customers and how they can benefit. A rewards system also needs a robust marketing strategy as well as an easy onboarding process with minimal form filling so as not
to discourage customers.
Email marketing and social media campaigns can help sell your loyalty program so consider a blended strategy to reach your maximum potential customer base.
False – why would customers be tired of getting rewards from their favorite brands?! In fact, a YouGov survey showed that 76% of UK consumers are members of loyalty programs and 73% think they’re a great way for brands to reward customers.
So, forget the myths and consider setting up a loyalty program for your business, however new it is, and see your company and your customers reap the benefits.
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