In any business, people tend to attract new customers. But any successful businessman or brand try to retain their old customers. They focus more on this point than attracting new customers. Studies suggest that, it costs a business more to bring a new customer than make old customer buy the same thing twice. Most effective ways to retain your old customer is by having a loyalty program strategy. If you can go into a little research you can find that most successful brands have already opted for this loyalty programs. Now, first let us go for what is customer loyalty program.
Customer loyalty is from customer’s side and his willingness to buy the same product again and again over a period of time. So as to reward him something in return so that he can be more loyal is customer loyalty program strategy which brings out customer satisfaction. In short customer loyalty program is nothing but a rewards program given by a company to their loyal customers. There are different kinds of loyal programs. They can give free merchandise, cashbacks, rewards, coupons, advanced product much before than others like that. It is also crucial to understand by a company that there cannot simply go for customer loyalty program without their ground work which instead could turn against them.
More loyalty programs will not work in favour for the company at all. So company needs to understand that they have to give loyalty program strategy which can add value to the company. Point system is one of the most efficient loyalty program. Giving points for the items customer purchase and they being able to redeem those points after it reaches a particular level. There are other effective ways to bring out the best of loyalty programs as well which depends on the company and the products they are selling. It is not only important to launch customer loyalty programs but also measure the success of these kinds of programs.
Things like customer retention rate, negative churn out will measure how much customers are happy with loyalty program strategy. Making our customer stay with us and make him happy is crucial because, a customer will not stop being loyal to your brand but promote about your product and how happy they are being with your company to his circle, friends, relatives, well wishers etc., This word of mouth marketing will be more effective than any other.