Blog Post

The Benefits of a Digital Loyalty Program for Your Business

Kelly Williams • Sep 25, 2019

Every type of business aims to expand by either breaking away from a plateau or surpassing competitors in the market. Some may want to grow at a slow yet steady pace, and others will want to build their empires quickly by honing their craft and sharpening their strategies. One of the most effective ways to fast-track your growth is by establishing a digital loyalty program. Creating digital loyalty programs is a cost-effective way to attract new customers and keep loyal ones hooked for more of your products or services. It’s an excellent method for increasing sales, even if it is executed through something as simple as a loyalty punch card that offers a notable discount for every certain number of purchases. However, you can level up your tactics further by launching a mobile loyalty program that everyone from your targeted demographic can quickly load into their digital wallet. This is done to combat the hefty costs of acquiring new customers as digital loyalty programs offer consumers an incentive to purchase products from your company - be it in the form of bonuses, special offers, discounts, personal offers, or internal currency. This will help establish loyalty, create excitement, and attract the market in the long run. When done right, you can sit back and gradually watch your sales skyrocket over time. To that end, here are different ways a digital loyalty programcan help your business.

Benefit #1: Customer Retention

The main goal of a digital loyalty program is to retain customers by rewarding them for their repeat purchase behavior. This establishes favorable habits for your business and provides a strong motive for customers to buy from your company again. Studies found that:

● Loyalty programs increase overall revenue by 5% to 10%

● Loyalty members spend 5% to 20% than non-members on average

● Loyalty members buy 5% to 20% more frequently than non-members

For instance, Starbucksis highly-regarded for its effective strategy by using stickers to reward loyal drinkers with their sought-after planner, which people from all over the world strive to attain. This is a mutually beneficial tactic that drives more sales for your business, all while keeping customers happy and encouraged to come back for more.

Benefit #2: Gather Relevant Customer Data and Consumer Trends

Loyalty programs can gather customer information efficiently and help your team tailor their promotion to specific groups of the market. These sources help build the algorithm and construct a pattern that can easily be identified, allowing your company to make a better customer-centric approach. Additionally, a loyalty program for mobile wallet can touch on technographic data to have more abundant information on the target audience’s behavior, preferences, and characteristics when making purchases, which is crucial for businesses as it can help redirect sales.

Benefit #3: Better Customer Communication

A digital loyalty program offers a direct line of communication to customers, making it easier to make announcements and establish connections. You can use this program in mobile wallet to promote new products or services, announce sales, as well as facilitate recalls when necessary. Having a stronger communication with your target market also provides a competitive edge as your business can categorize customers from profitable and unprofitable groups. Through a digital loyalty program, companies can offer better rewards to loyal customers and generate more profit in the long run. Digital Marketing Experts International are experienced in creating marketing campaigns that convert visitors into paying customers. Get in touch today to see how we can help.

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