Why a loyalty programme is good for your business
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Growth
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Author:
Annie May Byrne-Noonan -
Date posted:
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Why a loyalty programme is good for your business
A loyalty programme is good for any business, regardless of size or sector. This is because they reward customers for their loyalty, which encourages them to return and buy more.
In a competitive online marketplace, businesses must do more to tempt customers and keep them coming back. A loyalty programme is a good way for your business to do that.
A loyalty programme can encourage customers to return, spend more, and refer your business to others, helping you to attract new customers. Plus, you can use the data to understand customer trends and behaviours, which helps your product development and marketing.
In 2024, the Gift Card and Voucher Association (GCVA) found that 91% of the UK public use loyalty programmes, showing their great sales potential for businesses like yours.
Let’s explore in more detail, starting with how a loyalty programme helps you retain customers.
Good for retaining customers
A loyalty programme is good for your business as it can help you retain customers. This is because if customers know they can access rewards from your loyalty programme, they will likely buy from your business over others and continue doing so, making them more loyal.
Good for customer sales
As a loyalty programme tempts customers to return, they might consider buying more than they were initially looking for and buy different products too, meaning greater potential sales.
Good for understanding customers
A loyalty programme is good for your business because it can help you understand your customers better. Behind a loyalty programme, there’s data on customer behaviour and trends, helping you improve your loyalty programme so it stands out to customers. The data can also improve your marketing and product development, helping you offer better goods and services.
Good for customer relationships
A loyalty programme is good for your business because it helps create warmer, more loyal relationships between your brand and customers. A loyalty programme can help your customers feel valued beyond a mere sales transaction, so they are more likely to return, and often.
Good for brand promotion
Customers who feel valued by your business are likely to share your brand with friends, family and colleagues. This is a key reason why a loyalty programme is good for your business, as you can use these returning customers as brand promoters, helping you build your customer base.
Good for helping your business stand out
Your business might operate in a saturated environment, or you may not be able to offer as low a price as others. Here, a loyalty programme is good for your business as it helps you stand out from the competition, with customers drawn to the extra benefits of buying from you.
Recap – why a loyalty programme is good for your business
Your business doesn’t need one-off sales transactions. You need customers who purchase regularly, spend more, and shout about the benefits of buying from you, helping you create a strong and growing customer base while keeping them loyal too. A loyalty programme can help with all of these things, making it clear why they are so good for businesses like yours.