06/03/2018
How can you create the right loyalty program for your business?
Did you know that, statistically, to win a new client you need to invest with 30% more in advertising and six times more time than to keep an existing client?
The existing clients represent the area where we can use the loyalty programs because to sell them is - in theory - easier than to attract new clients. Therefore, how can you make them to come back in your stores?
Anyone can have a loyalty card to offer points or discounts to certain products that don’t sell well or that are in a big quantity in the store. But this is only an extra path to promotion. To create a real loyalty program, you need more. You need to offer a relevant discount to your audience, to understand the customer’s behaviour, its needs and its habits, to see what is important for the client so you can make him happy. blush
What are the advantages of a loyalty program?
It raises the number of clients. The members of a loyalty program are more willing to share their shopping experience with their family, friends and co-workers. In this way, the merchants are getting free direct promotion.
It raises the number of shopping sessions of existing clients. Only 22% of loyalty cards holders will use it regularly.
It improves the retention rate of existing clients. From statistics you can see that only 20% of a retailer’s buyers can be loyal, but they are generating between 55% and 70% of sales.
It raises the profit. Companies can raise the profit with approximately 50% by increasing with 5% the number of loyal clients and selling products which brings higher profit.
But how can you make a successful loyalty program?
This usually means money spent, logistics, people and strategies. These expenses represent a considerable amount of money which will be initially spent and which will put pressure on your company marketing budget.
However, there is an alternative through which you can make have these expenses monthly, receiving the expertise and the advices of experienced marketers. You can also receive a benchmark analysis for reference.
We’ll talk about the mobile app dedicated to loyalty cards, VirtualCards. Why? Because over 59% of the clients want to have the possibility to collects points from their favourite stores using a loyalty app. And over 82% of them would be easier to convince to go to a store if it gives discounts for sure through an app.
On average, a client subscribes to 7.5 loyalty programs. This means that he has at least 7 loyalty cards in his wallet. VirtualCards app is helping users to keep all their loyalty cards in their mobile phone. Moreover, this app helps affiliate merchants to create cards instantly from App so easy, by filling some personal information.
Learn more: register here: https://www.cognitoforms.com/GETLOADED1/VirtualCardsPartnerMerchantd9068dd807
