A loyalty program is a way to retain existing customers and help increase sales and attract new customers.

Studies show that 75% of customers may switch brands because of better terms or more attractive bonuses for purchases. For them now, the experience of interaction with the organization is important, so the incentive system will encourage them to buy more often. The profits of companies with this reward method are 2.5 times higher than those without it. This is why many companies prefer to give their customers gift cards or loyalty cards that are easy to order for their business from https://wallester.com/.

They help return 100-400% of the investment made in them. 

And if the benefits are very high, many will likely tell their friends and bring in new customers. It is a win-win situation for both the user and the seller.

In this article, we will talk more about the goals, objectives, types, and stages of development to retain the audience.

Customer loyalty program - what is it, in simple words

It is a system of rewarding loyal customers. It doesn't matter what kind of reward - discounts, bonuses, free shipping, access to exclusive products, or closed events.

For example, a purchase in an electronics store is rewarded with points, which can be used to pay for other products. Or when purchasing luxury clothing for a certain amount, the participant gets access to private meetings and fashion shows.

This approach will encourage spending more often, retain old and attract new consumers, and reanimate those who are no longer in contact with the brand.

Goals and Objectives

Why do we need a loyalty program?

It helps:

Increase the average check. Recent studies show that 49% of customers agree that they buy more after joining a rewards system.

Gather information about the audience unobtrusively and analyze the data obtained. It can also be used to generate personalized offers.

Set the business apart from others and encourage regular visitors to become members. Sometimes for the sake of participation in a club with really favorable conditions, people start interacting with a certain seller.

Retain current customers. The better the perks, the more likely people will continue buying from a particular brand.

Build a community of loyal customers through close contact. Statistically, 75% of customers make purchases based on their experience with the company. Accordingly, the richer it is, the better.