Retaining the loyal consumers or acquiring new ones- which according to you will give more returns? Well! The wise will always go by the first option since retaining a loyal consumer is more valuable than trying to acquire new consumers. And when we talk about retaining the consumers, the first thing that comes in the mind is the consumer loyalty program.
A consumer loyalty program has always been a topic for hot discussion as it is surrounded by several myths. This blog post intends to debunk all the myths to reveal its real potential.
Fact: Creating a loyalty program from scratch involves a cost that may seem to be high to brands, but it is all worth it in the end. Whether you are a small brand or a giant one, implementing a consumer loyalty program will always give you more value in return for the money spent by you. Numbers are proof that it is always beneficial to show that you care for your consumers.
Rather than being just an expense, a smart loyalty program is a brand differentiator and boosts profit over time. Retaining existing consumers is 5 to 25 times cheaper than acquiring new ones.
Fact: A loyalty program’s complexity depends on you. You can always start small to see success so that you can expand over time and start experimenting with different strategies. Assuming that consumer loyalty programs are complex will only make you lose a larger share of your success.
In this golden age of technology, statistical data can help brands understand the consumer’s habits and come up with appropriate loyalty programs to retain them. Taking cognizance of this, the complexity factor gets dominated as brands see higher value in return.
Fact: A successful loyalty program gives rise to a win-win situation for brands and consumers. While on one side your consumers receive rewards and other offers, you receive their loyalty. The main aim of a loyalty program is to earn a consumer’s loyalty in a genuine way and not by giving away rewards for free.
Brands that are actively involved in the implementation of loyalty programs know how the programs incentivize honest behavior from the existing consumers.
Fact: This myth has been around since the time consumer loyalty programs have come into existence. In the past, many brands considered that their digital business wasn’t suitable to implement such a program. However, they began to realize that a loyalty program isn’t just for traditional businesses, but for every modern business too.
Digital businesses have unique advantages when it comes to designing loyalty programs for their organizations. They can facilitate smooth implementation and operation of a loyalty program to reap its benefits.
Fact: The real fact is that there are many metrics that help you measure the effectiveness of your loyalty program. These metrics include repeat purchase rates, average order values and net promoter scores.
Brands may seem to have an uneasy relationship with loyalty programs. But our explanation has proved how baseless the myths surrounding the loyalty programs are.
Genefied is a name that is trusted for providing solutions to retain the consumer’s loyalty. If you still have concerns about starting a loyalty program, don’t hesitate to get in touch with our team. We will free your mind from all the myths and give you a thousand reasons to implement a consumer loyalty program for your brand.
The clock is ticking. Make the right move NOW by making us a part of your success story.