Have you ever realized why it is important to have loyal customers rather than acquiring a new customer? Why Big businesses focus on their Customer Relationship Management (CRM) and try to serve their best services to their existing store customers. Let’s get to the fact that it costs 5 to 25 times more to gain a new store customer. While your existing customers purchase 67% more than your new customers. That sounds good, but retaining old customers is the toughest job because maintaining regular customers and turning them into returning customer is not as easy as you think. For that, we have to go for that extra mile.
Most of the retailers claim that having loyalty programs helps in maintaining a good connection between them and their customers. But why loyalty programs hold huge importance in any Ecommerce store?
- According to a survey,45.4% customers want to join loyalty programs to save money and 37.5% to receive rewards.
- An interesting thing which will definitely blow your mind is having an increase in customer loyalty would give you a rise of average profit per customer by 25-100%.
- 69% of customers are influenced by loyalty programs and choose a retailer accordingly.
So, I guess these were enough facts to describe you the importance of Loyalty programs. Now coming back to which kind of loyalty program suits your store varies according to the type of business.
But In this Ecommerce era, reward points are commonly used Loyalty programs. It is one of the most famous tactics to retain old store customers and turn them into loyal ones.
Tips to encourage customers to earn reward points:
- Earning reward points should be easy as well as the customer should able to redeem reward points at the time of purchase.
- Give several ways to customers earn reward points like SignUp reward, rewards for providing reviews etc.
- It should not always be compulsive to purchase a costly product to earn points, you can even offer small rewards for purchasing small items.
Reward points are old, but yet one of the most effective strategies to retain loyal customers of the store.
So here are the top 5 reasons to have a Reward point system:
- Encourages customer to buy more:
Having a reward points system can encourage customers to make a purchase. Because customers feel like shopping more to earn more points, which as a result, gives rise to sales.
- Offer a discount on the next purchase:
Attract them by giving rewarding on the existing purchase and force them to use in next purchase. It will encourage your customer to make another purchase to redeem existing rewards. Offering such discounts have always been a game changer.
- Reward Points as Payment Method:
You can also provide an option to pay cart amount by using the reward points they own. By integrating such a payment system, it encourages your customer to place multiple orders which increases average order value.
- Turn them into happy returning customers:
Redeeming of reward points make customers instantly happy and that happiness creates a connection between your store and customer.
- Build Trust and Increase Brand Awareness:
Rewarding your customers will increases reliability too, which is excellent for any store. As earning trust and having a good rapport between your customers and business is a must thing in today’s competitive world.
This was all about the importance of reward program which is one the most commonly used loyalty programs. So, take care of your existing loyal customers and make them happy.
Happy Rewarding!
