If you think of a loyalty rewards program as an outdated tool used by grocery stores and clothing outlets, think again. This marketing tactic is still very much alive, and can have many benefits for a digital-only company as well. Whether you choose to offer discounts for repeat sales, a redeemable point system for reviews, prizes for social media posts, or any other type of loyalty rewards, you can turn the results around into a big win for your company. Here are seven reasons to consider implementing a rewards program today:
1. Proven Growth Hack
Trying to scale your business is every owner’s biggest challenge, especially for recent start-ups. Loyalty programs have been proven in a huge range of industries to lead to growth. Consumers like being rewarded for their behavior, and when rewards are offered, you get more repeat business, more new leads, and more word-of-mouth.
2. Increase Order Values
If you are like many digital businesses, you likely struggle to float by on many small orders, when what you truly need is a handful of big orders each month. Loyalty programs are a great way to entice consumers to buy more per order, when the reward is available after unlocking a certain order amount.
3. Cheaper Than Other Marketing Tactics
As far as customer acquisition costs go, customer loyalty programs are actually far more affordable than outbound advertising, email campaigns, social media engagement, or just about any other marketing tactic you can name. This is because loyalty programs can easily include a referral program, making this a “tow birds with one stone” tactic for acquiring and retaining customers.
4. Influence Buying Habits
Do you have a particular product or line that you want to sell more than others? Loyalty reward programs allow you to influence how your customers buy. Simply offer higher rewards for choosing specific products, such as house-branded products.
5. Gain Insightful Marketing Research
If there’s one thing that a rewards program does well, it’s tell you exactly what kind of incentives drive your market. As you do trial and error tests of different rewards, you’ll start to see what it is that your customers want, so you can hone in on that for future campaigns.
6. Easy to Automate
One great benefit of loyalty rewards programs is that after you get it all set up, you can let it automate itself, which saves you labor costs. The initial research and set up does take effort, but after that? Everything is driven by the consumer’s behavior.
7. Make Customers Happy
Finally, a loyalty program makes your customers happy. They like getting what they perceive as free stuff in exchange for doing something they were already going to do. These programs don’t require that you provide any extra customer service, and are a great way to impress new and returning customers. Happy customers are repeat customers, as well as ambassadors for your brand. There’s no better benefit!