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.