Running a business is a very rewarding experience, but it can also be quite challenging. From the initial planning stages to day-to-day operations, there are many things to consider to keep it going smoothly.
One of the key factors that contributes to a business’s success is acquiring and retaining customers. To keep customers coming back for more, a company needs to have a successful customer loyalty programme in place.
What Is A Customer Loyalty Programme
Customer loyalty programmes reward customers for their continued patronage. For example, if a consumer buys a product, he can scan the product’s smart label which consists of a unique QR code. Other than authenticating that the product he buys is real, this code gives him a chance to participate in a lucky draw, for instance. Customers can also earn other types of rewards like discounts or points for each purchase, motivating them to stay loyal to a brand and ultimately increasing sales for that particular company.
There are many different types of loyalty programmes, but all of them share one common goal – to keep customers coming back. Though these programmes have been around for a long time, they are becoming increasingly popular as a way to attract new customers and retain old ones. This industry is projected to grow from USD4.43 billion in 2021 to USD18.22 billion in 2028.
Below are three reasons why businesses should consider launching a loyalty scheme.
1. Retain existing customers
A loyalty programme encourages customers to keep returning to the business so they can earn or spend their rewards. The probability of selling to an existing customer is up to 14 times higher than the probability of selling to a new customer, according to Marketing Metrics. In fact, customers will have a higher chance of spending more money. Not only does the company get to keep its regulars happy, but it will also see an increase in revenue and profit.
A great example of a successful loyalty programme is Sephora’s Beauty Insider, where customers earn points for each purchase and they can choose how to use these reward points. Up to 80 percent of Sephora’s annual sales are made up of Beauty Insider members.
2. Increased brand awareness
With unique rewards and perks such as a grand lucky draw prize, a loyalty programme can help businesses build relationships with customers and create brand advocates. Consumers can also stay up-to-date on the latest products and services offered by the company and get the best possible experience. These are effective ways for companies to set themselves apart from the competition and keep their customers coming back for more.
3. Attract new customers
Loyalty programmes provide an incentive for the customer to buy the company’s products and services. Through referral schemes, existing customers can also refer their families and friends to the brand. In fact, 77 percent of customers would recommend a brand to a friend after a single positive experience, according to Temkin Group. Even better, through a smart tracking system, the business can trace its referred customers and develop unique solutions to drive sales. This can supplement its marketing efforts, help attract even more new customers, expand its customer base, and ultimately increase the company’s market share.
Launch A Successful Loyalty Programme Today With Nabcore
Launching a successful customer loyalty programme doesn’t have to be hard with Nabcore’s 3-step technology approach to marketing engagement: Attract, Engage, and Excite. We first help companies to create aesthetically pleasing labels, such as 3D Security hot-stamp lens foil and holographic labels. Next, we engage them through QR codes that provide more information about the company’s products and services. Lastly, we excite them using loyalty programmes for them to earn points and redeem rewards after purchase. Contact us to find out more about our marketing engagement techniques or request for a free trial today!