Loyalty Program
You’ve probably heard of loyalty programs before. If you have not, chances are you have at least heard of club cards, loyalty cards, rewards cards, or points cards. Their use is widespread and the average US household has 21 loyalty programs. Companies try to add consumers to their loyalty programs and offer rewards to them for using it. These programs are a way for companies to encourage their customers to spend more in their stores or use their services more often. These rewards are usually discounts on products and services a company offers. And they’re proven to increase revenue! Here are some useful stats for you:- The probability of selling to an existing customer is 60-70%
- The probability of selling to a new customer is 5-20%
- If a business can retain each of its customers for an average of just one additional month, they can achieve an additional 3% in annual growth
- Loyalty programs can generate as much as 20% of a company’s profit
- Pirq
- Five Stars
- Belly