Loyalty Program Definition
Loyalty program definition: What is it really? And why do you need to have such programs for your business?
It’s very simple: Loyalty programs are about customer retention.
Now, you might be thinking that this concept is too simple—and you’re double guessing its importance to your business.
You see, there’s actually a science to loyalty programs...
In fact, it just might help make your business better!
Yes, I’m talking about greater marketability, wider brand recognition—and of course, more profits for you in the long run.
Still don’t believe me?
Loyalty is an important commodity in business. Without it, making your business stay afloat would be more difficult and a lot more challenging.
So, why is loyalty so important in business?
Well, because in the end—loyalty is about trust. If people trust your brand, they won’t think twice about supporting your business, or whatever you may have to offer.
Having the impression that you’re trustworthy will have a significant effect on your business.
People who trust you won’t hesitate telling their family and friends about your company.
And those people who they told about you? Well, they’ll tell their family and friends as well.
In short: When you have loyal supporters and fans—you actually get to have the needed help for marketing your business. And as we all know, effective marketing can help ensure that your business gets the profits that it needs.
But how do we make sure that our customers become loyal to our brand?
Well, first and foremost: You need to make sure that you’re actually delivering on your products or services. This is the first step. If you aren’t able to deliver on your claims, then you will have a harder time convincing people to be loyal to your brand.
The next important and viable step to take would be to create loyalty programs to stir greater interest for your company.
A loyalty program is a feasible and cost-effective strategy that can make your fans love you and your business even more.
Let’s admit it: Who doesn’t love getting freebies and stuff?
We bet you do—and we bet your customers do as well.
Yes, whether we like it or not, humans love to receive things. As it is, you should take that as an opportunity to reach out to more people—and just give them a whole lot of fun!
That’s where a loyalty program can be put to good use.
Here are some things to ponder: Did you know that properly executed loyalty programs can actually generate around 20% of the profits of a business?
Because there’s a 60% to 70% chance of closing the deal if you sell to an existing customer (otherwise known as a loyal customer). In addition, loyal customers will more likely make higher-value purchases compared to new customers.
And that’s not all…
Studies have also shown that it costs around 5 times more to attract new customers, compared to retaining old customers. Incidentally, there’s also a 5%-20% greater likelihood that you’ll make a sale if you sell to your existing clients.
Now, tell me frankly: Aren’t these useful for your business? Quite impressive, right?
Fact of the matter is, if you like all of these benefits and more—then you need to formulate your loyalty program now.
Other businesses (and most probably your competitors) are already using this strategy.
Obviously, you should too.
Creating loyalty programs shouldn't be difficult—provided you have the right help.
So, you want to make the best loyalty program for your small business, but don’t know where to start?
Let us help you.
First, know who your audience is. This way, you get to formulate the right strategies and procedures to make your loyalty program even more attractive.
A great, smart loyalty program will even show you the data for the right strategies and procedures.
Next, you want to use the right platform.
Also, what specific prizes do you think would catch people’s attention? Discounts on existing items? Free items (like coffee and sandwiches after you purchase a certain amount)?
Do you have the right budget for your program? Do a comparison here of the top programs and choose the one that’s best for your budget.
Keep in mind, though, that a loyalty program is an investment, not a cost. You can and should expect an ROI.
These are just some of the details that you need to know about loyalty programs.
However, there are a few additional things that you may have to do (yeah, we know you didn’t want to hear that).
Don’t worry though—RedFynn can help you out.
If you’re looking for help with loyalty program definitions, procedures, strategies and other details—we are experts on the matter. After all, it's our job! Call (888) 510-9871 and let’s talk.
Aside from helping you build your existing business, we also specialize in fine tuning it. We do this through data analysis, cheap merchant services (with an A+ BBB rating!), on demand business loans, POS systems, and much more… anything that involves making your business the best and most efficient possible.