Get Rid of Misconceptions About Customer Loyalty Programs


Irrespective of the size of your store, business decisions should not be taken lightly, even if it is about investing in a good loyalty program.

With loyalty programs come few misconceptions. In this blog we will be discussing about the difference between facts and fiction about loyalty programs. This will let you focus more on what’s important – retaining loyal customers.

1. Loyalty Programs are Expensive – The rewards and points that you offer to the customers undoubtedly come with an associated cost. But the fact is that you will earn double ROI on the rewards that you offer to your customers through Loyalty Software or programs. It has been noticed that the customers who redeem points through loyalty programs are most likely to spend more on your products and services. This means that your cost of investment in a loyalty program can be covered up with an adequate amount of profit. It is not necessary that the rewards form should be financial. You can also offer your members unique content, early-access to sales or new products.

2. Lots of Customers are Required for a Loyalty Program – If you have more customers, you will definitely have more potential members. Till the time you are getting sales, you have people to persuade to join your program, involve with your brand and talk about it with others. The only key is to start early to get more time to test rewards structures and all the potential of loyalty programs.

3. Loyalty Programs are Tough to Evaluate – Evaluating or measuring loyalty programs is not a tough task when you have various metrics like repeat purchase rates, average order values and net promoter scores. The actual key to success is when you are able to measure the customer lifetime value of a member versus a non-member.

4. Customers are Bored of Loyalty Programs – It has been researched that a majority of people or consumers agree the fact that loyalty programs make them continue doing business with a particular brand. When we talk about loyalty program fatigue, it means that shoppers are just tired of programs that don’t offer meaningful, personalized rewards.



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