Why Loyalty Program is a Must-Have Tool for the Growth of Your Brand
- Posted on August 9, 2023 by Robert
- Reading time about 5 minutes
In this competitive market, non-standard and unpredictable customer buying has made it nearly impossible to acquire and retain customers. Most brands are using customer loyalty software solutions to attract and engage their customers and retain existing customers to a great extent. A loyalty program is becoming an effective tool for brands to experience significant growth, expand market share, and build a loyal customer base in the market. Let’s explore the potential of loyalty programs in growing the business of your brand.
B2B V/S B2C Loyalty Programs
Brands and businesses can incorporate an effective loyalty program based on the preference of their customers. If a brand deals with other brands that deliver products and services to customers, then it should integrate a B2B loyalty program. If brand potential customers are direct consumers, then brands should integrate a B2C loyalty program.
B2B loyalty programs are more restrictive in terms to deliver rewards, recognition, free product trials, or product/service bundles. It provides access to invaluable customer data and insights that you can use to improve your product and services. Thus, you can identify your pain points and deliver products and services that can increase lifetime value and improve communication. For brands, the loyalty program for small business attracts and engage audiences and benefits with valuable data and insights about them.
Customer loyalty software solution offers the convenience to access exclusive deals, discounts, and rewards that benefit and saves money on their purchases. Thus, it is highly effective in engaging, empowering, rewarding, and retaining your customers. It allows brands to deliver more personalized rewards and benefits to engage and retain potential customers. It also attracts potential customers and brings in more sales and revenue for brands.
Why Loyalty Program is More Important Than Ever for Brands?
According to a recent survey, customers in the U.S. belong to an average of 16 customer loyalty programs but uses half of them actively because today’s brands are still using outdated loyalty programs that do not align with the need and benefits of modern customers.
Is your brand among the thousands of brands that are losing their potential customers as well as seeing a loss in overall revenue? If Yes, then it is the perfect time to kick out your old and legacy loyalty program and integrate an AI-powered customer loyalty software solution like Novus Loyalty that can easily curate personalized deals, offers, and benefits for your potential customers.
5 Undeniable Benefits of Integrating a Loyalty Program
1. Broad customers Data and Insights
The first and foremost benefit of having a customer loyalty software solution is that you can systematically collect data and insights from customers. These data and analytics help you to learn more about your target audience, buying preferences, behavior, demands, etc. Thus, you can curate special deals and
offers more personalized offers, discounts, and benefits that can bring more potential buyers to your business.
2. Increases Rate of Customer Retention
The goal of integrating a loyalty program is to encourage customers to make repeat purchases and build long-term relationships with them. AI-powered loyalty program easily enhances the buying behavior of customers by offering them different loyalty program-based incentives, rewards, and deals to save more. It removes the risk of customer segmentation and values them. Thus, it can easily address customer churn and ensure that your customers feel valued with an exceptional shopping experience. Thus, the loyalty program for small business helps in better customer acquisition and foster long-term customer value and retention.
3. Higher basket value and shopping frequency
An effective loyalty program for small businesses can enhance the basket value and shopping frequency of customers in terms of value and frequency of individual transactions. It is estimated that AI-powered loyalty programs can boost revenue by 15 to 25 percent per year by offering a discount on a customer’s favorite product or providing a complementary and enticing product that perfectly matches the items in the customer’s shopping cart. Thus, increasing purchase frequency and basket value is a great way to boost your revenue.
4. Increases Customer Lifetime Value
Acquiring a new customer can cost five times as much as retaining an existing one. Customer lifetime value (LTV) is the average amount of money a customer will spend on your offerings over a certain period. Loyal customers tend to have a higher CLV as they not only make frequent purchases but also often spend more per transaction. A loyalty program encourages customers to stick with the brand, resulting in increased CLV over time.
5. Improved Customer Experience
In today’s saturated market, businesses face fierce competition. Loyalty programs provide a strategic advantage by encouraging customer retention and repeat purchases. Customers are more likely to stick with a brand that offers rewards and benefits for their continued patronage. Thus, people can spread word-of-mouth marketing and attract more prospects to your brand so that you can have more loyalty program members and act as a major factor in enhancing their purchasing decisions. That’s brands should align with loyalty rewards programs with a company’s overall customer experience.
A loyalty program is an essential tool for brands to retain customers, gain valuable data insights, and differentiate themselves in a competitive market. It helps brands in offering personalized rewards and experiences and creates a long-lasting connection with their customers to drive long-term success. We at Novus Loyalty are bringing a dynamic shift in the landscape of loyalty programs. If you want to bring potential to your overall growth of the brand, then we can help you with a modern AI-powered loyalty software solution.