For a company it is more expensive to attract new customers than to sell to existing ones. And more than that, existing clients spend much more than new ones, which means that loyalty and loyalty programs are extremely effective and costs are self-deductible.
What is a loyalty or loyalty program?
It’s a program that offers rewards to your customers or partners for a certain action, basically, to buy products or use your services. Rewards can take many forms, but the favorite method of getting customers is to receive loyalty points that can be later converted into credits with which they can buy products at the promotional price.
What preferences do customers have?
Customer preferences depend heavily on industry, industry, social class, urban or rural environment, so it is very important that when launching such a program, keep in mind the target customer and his behavior.
Once enrolled in the platform, customer behavior can be segmented in two phases. The first phase is testing, where customers visit and watch the platform for 2-3 months, gather points and buy a lower value prize. Shortly after, the second phase follows, where customers gather points, tumbling higher prizes, and then use the full number of points on the platform at the end of the campaign.
Overall, the redeeming rate is around 92%, which means that 8% of the points budget remains unspent, but with constant and sustained communication, but also a great prize pool, which also includes prizes a lower value, this rate may increase considerably.
What’s next after consuming the points?
The campaign does not end when the customer has ordered the desired prize, thus spending the points on the platform.
“It is very important to receive your prize in time! When you order a product you are anxious to get it as soon as possible. Basically, Customer Experience is here and it is what differentiates us.
That is why we constantly update the stock of products and our logistic capacity allows us to deliver the prize in a very short time. “, Adina Georgescu, Create Direct
What impact does such a campaign have on your business?
Loyalty or loyalty programs are for your most involved customers. Even if they represent only 20% of your total customers, they are the ones that generate 80% of total revenue, spending more time over time. Such a campaign ensures that these customers feel appreciated and motivated.
With the data you get from your customer’s behavior and preferences within the platform, you can improve your marketing strategies and adapt or improve your loyalty program.
Make sure you develop your business and give your customers the right attention with a simple yet effective loyalty program that you can implement today!