It’s no secret that businesses need to focus on customer retention to succeed. In fact, it’s much more expensive to acquire a new customer than it is to keep an existing one. One of the best ways to retain customers is through loyalty programs. These programs create a relationship with the customer that encourages repeat visits and builds brand loyalty–and these loyalty programs are even better when they are digital!
In this blog post, we will discuss the benefits of having a virtual loyalty card program for your brick-and-mortar store. We will also look at why these programs are important and what they can do for your bottom line!
Why are Loyalty Programs Beneficial?
Loyalty programs are beneficial for a number of reasons. First, they build customer loyalty and encourage repeat visits.
84% of consumers say they’re more inclined to stick with a brand that offers a loyalty program.
Studies have also shown that customers who are enrolled in loyalty programs visit businesses more often and spend more money than those who are not enrolled.
Second, loyalty programs make customers less likely to try or switch to a competitor because they get excited about collecting rewards and special offers from your program. In their excitement, loyal customers are more likely to recommend your business and your loyalty program to their friends. This word-of-mouth marketing about a positive customer experience is extremely valuable for businesses!
Customer loyalty programs also increase your business's bottom line because when customer retention increases, so does your business's profit. But how much, you might ask. Well, A 5% increase in retention can actually lead to a 25 – 95% increase in profit. That kind of growth should have you scrambling to create a loyalty or rewards program if you don't already have one!
Finally, loyalty programs allow businesses to collect data on customer spending habits. This information can be used to make more informed decisions about products and strategies. In other words, businesses can use loyalty programs to their advantage by using the data collected to improve their bottom line!
The Different Types of Customer Loyalty Programs
Now that we’ve discussed the benefits of loyalty programs, let’s look at the different types of programs you can offer. The three most common types of loyalty programs are points-based, tier-based, and hybrid.
Points-based customer rewards programs are the most popular type of loyalty program. In these programs, customers earn points for every regular purchase they make or for completing certain tasks that benefit your business, like leaving a positive review. These points can then be redeemed for exclusive benefits like discounts, coupons, or free products.
Tier-based programs are similar to points-based programs, but customers earn “tiers” instead of points. Tiers are based on how much the customer spends at your business. The more they spend, the higher tier they reach. Return customers in higher tiers usually receive better rewards, such as early access to sales.
A hybrid reward program is a combination of points-based and tier-based programs. In these programs, customers earn both points and tiers. The benefit of hybrid programs is that they offer the best of both worlds!
Digital Loyalty Programs Are The New Normal
In today’s world, digital loyalty programs are the new normal. With so many people using their smartphones to make purchases, it only makes sense that businesses would want to take advantage of this technology. And there are plenty of reasons to do so!
First, digital loyalty programs are more convenient for customers. They can easily keep track of their points and rewards and don’t have to worry about losing a physical card.
According to recent studies, 57% of loyalty members would like to engage with a loyalty program on their mobile phones.
Second, digital loyalty programs are more convenient for businesses than traditional loyalty programs. Businesses can easily track customer spending and activity, and they don’t have to worry about printing or distributing physical cards. This collected data on customer behavior can be used in your business’s marketing strategies to attract new customers in your target demographic and sell them the products they love the most.
Third, digital loyalty programs are more environmentally friendly than traditional ones. By eliminating the need for physical cards, businesses can save paper and reduce their carbon footprint. These green practices are attractive to customers who support eco-friendly business practices.
Finally, digital loyalty programs offer more flexibility for businesses. They can easily change the terms and conditions of the program, as well as add or remove benefits. This flexibility is important in today’s ever-changing business landscape!
How To Start A Digital Loyalty Program
Many small businesses have shied away from introducing a digital rewards program because they don’t have the budget or tools to create their own app, but DigitalGift’s loyalty program solves that issue!
DigitalGift is a turn-key solution that provides businesses with everything they need to create and manage a digital loyalty program, all on one easy-to-use app for you and your customers.
DigitalGift’s user-friendly interface makes it simple for businesses to create and manage successful customer loyalty programs. Plus, DigitalGift offers a wide range of features to choose from, including the ability to offer discounts and track customer spending, send push notifications, and much more.
Finally, you can meet your customers and potential customers where they’re at–on their mobile phones with a DigitalGift wallet that holds their loyalty cards, discount cards and gift cards for your business. When you give your loyal customers what they want, they are more likely to stick around and spend more. So what are you waiting for?
Use our Merchant Sign-Up Form to inquire about how to start a digital loyalty program with DigitalGift today. Your dedicated customer base is only a few steps away!
