Businesses spend 5-25 times more on acquiring new customers than selling their brands to existing customers. In fact, existing customers are likely to spend 67% more than a new prospect. The question is what businesses do to keep up the engagement of their existing customers? More importantly, what steps do businesses take to keep bringing their customers back to their website?
Well, reward points and loyalty programs have proven a great way to increase your website traffic and grow your loyal audience. A major portion of your revenue comes from the customers, who regularly shop from your website. Loyal customers tend to spend money on your website because they trust your brand. They even spread the word about your brand to their colleagues and friends. They keep purchasing from your store to rack up the reward points. It indicates that your loyal audience loves your brand and is ready to spend extra on your products.
So, isn’t it important for businesses to pay special attention to their loyal audience that’s likely to come back to their store more often than new visitors? Sure, you need to attract new visitors to grow your brand. But, your priority must be the existing customers. The easiest way to keep up their engagement with your brand is by offering loyalty programs. Create a reward system, which allows your regular audience to collect reward points and have them redeemed for a FREE product or some cash. Let’s have a look at some interesting facts about reward points and loyalty programs.
It Helps You Achieve Customer Retention
The main motive of reward points & loyalty programs is to retain a user. Basically, it is a marketing tool that encourages your customers to shop again and again from your store for some interesting rewards.
Do you know loyalty members tend to spend approx 20 per cent on your website than the normal audience? Even a 5% growth in the customer retention rate can have a major impact on your annual revenues. In fact, mobile app development and loyalty programs are considered the most profitable investments for online businesses.
Another benefit of a loyalty program is that it allows store owners to categorize their customers into profitable and non-profitable groups. This helps you identify the users, who only purchase the discounted products or seasonal items rather than buying the premium ones. You don’t need to invest your efforts and money into retaining these customers. By creating a loyalty program, you can support the profitable group that brings a major portion of the revenue to your business. Basically, you can generate more revenues by focusing on the customers that spend more on your website.
Unique Rewards can Grow Your Audience Rapidly
People love FREE products, discounted prices, and cash backs. They are even ready to spend more on your products just to claim the reward points and redeem them for cash or free items. These bonuses compel users to partake in your loyalty programs and shop frequently from your store. According to the research, 57% of customers tend to participate in loyalty programs for rewards and exciting bonuses.
So, why not make the most of your loyalty programs by offering a unique and exciting reward to your existing customers? A loyalty program is all you need to draw the attention of your prospects and turn them into your regular customers. Invest in grocery mobile app development and introduce loyalty programs and reward point system to your audience. Grow your brand online and increase customer retention rates in the easiest way!
Source: Elite mCommerce