Loyalty ProgramsDo customer retainership systems cost less than attracting new ones?

What makes a customer return to your store besides the products they want to purchase?

If you want your customer to frequently visit your store and make purchases, you need to incentivize their actions and develop a customer loyalty program. Some of the rewards you can give are discounts, freebies, or allow advanced access to your new arrivals. Customers who want to make use of your customer loyalty program will have to fill out a registration form.

In return, they get a customer ID card and present it to the cashier whenever they make purchases. Loyalty programs can immensely benefit your company as customers can provide vital data on buying and spending habits and product preferences.

Customer Experience

Paying attention to the kind of experience your customer is getting from your store is crucial in retaining them and attracting new ones in the process. There are key points we want to emphasize in taking customer experience seriously:

Key Point #1: Brand Loyalty

When customers feel that they are special, they tend to familiarize themselves with your store. Every time they come across your brand, they remember the kind of experience they are getting from you. When they are rewarded for making a purchase, repeat purchases, or avail from your services, they start to connect with your brand. The strength of their loyalty lies in the trust that they begin to build with you. Incentives can come with an effective app, prompt delivery, and points earned.

Key Point #2: Data Gathering

The wealth of vital information that your customers provide as they join your loyalty program is crucial in building your business. The details they give can reflect their preferred products, spending cap routines, and buying habits. Based on customer information, you can evaluate the effectiveness of your type of loyalty program.

The Importance of Customer Loyalty to your Business

A well-placed customer loyalty program is an efficient way of growing your business revenue. It can even beat the efforts of your sales and marketing think tanks. And it is five times more expensive to build a new customer base than to keep the current ones happy.

There is also a higher probability that your ‘old’ customers will try your new product or service and spend more than the fresh ones. We can see that those who are comfortable with your brand will spend more time, effort, and money with it. What’s more, they will start talking about it among their family and friend circles. Because of your program, the word-of-mouth strategy is triggered and starts rolling, which can increase clients.

Delivering the Promise

The building of trust is essential in the success of your business, brand, or company, all because you are delivering customer experience effectively. When the trust is built between your brand and the customer base, they will treasure the value they are getting and enjoying, something that competitors will envy.

Samples of Customer Loyalty Program Systems

1. Points System

Regular customers can earn a certain number of points based on purchases that can be converted to cash equivalents and used to buy again. It can also be a freebie, a discount, a reward, or a special offer. This system can be applied to businesses that cater to frequent or habitual purchases. Examples are fast-food shops, groceries, etc.

2. Tier System

This is a step ladder loyalty system that encourages customers for more purchases or avail of services so that frequent customers will level up to a category where rewards are higher. This calls for a deeper commitment and better rewards based on frequency. A good example would be hotels, resorts, airlines, and insurance.

3. VIP System

This is a different kind of system where customers, this time, buys a VIP Card meant to bypass purchasing obstacles such as taxes and shipping charges.

4. Coalition Program System

This is a good way of letting your customers know of your holistic approach to fulfilling their needs by partnering with other companies that delivers relevant goods and services. After purchasing sports equipment, it might be a good thing that they get a freebie to try a newly-built gym nearby. This will be beneficial for you, your partner company, and your customer to grow your base.

Conclusion

You can devise countless other strategies to attain customer retainership and loyalty, such as building a customer community, turning the loyalty program into a game, or just being plain generous. Customer loyalty programs may be construed to drive customers to spend more only to get meager incentives. Again, just be generous. Let them know they are genuinely valued.

If none of your applied programs work, it might well be that you just need to scrape it off completely. It can be that your business does need one at this point in time. In any case, do not close the door just yet.

The Xion Way

Spending unnecessary funds on 3rd party loyalty programs that just don’t work? Xion has the solution.

A new & easier way to reduce customer churn rates via subscription-based models. With Xion’s compounded subscription based loyalty program, Merchants can now offer consumers compounded savings on recurring products/services when choosing Xion as their preferred payment provider to accept global payments.

What’s amazing is that customers do not have to download or signup to anything to get access to the loyalty program for your products/services. This is all accomplished through Xion’s hosted checkout to provide a seamless checkout experience and rewards experience all in one.

Let your customers get rewarded for staying committed for longer with Xion’s loyalty program. Helping you and your business stand out from the rest of the crowd.

Learn more about how you can get started today with Xion’s loyalty program here