27/09/2018

Loyalty Programs and their Benefits to Businesses

           Loyalty programs came into existence after business owners and big companies realized the sustainable competitive advantage that they once experienced from it. Through loyalty programs, many businesses and companies successfully grew their profit primarily by having more loyal customers. Why does having loyal customers plays a vital role in generating revenue? Simply because loyal customers will purchase many times all throughout their lifetime, this is called lifetime value. 

 

1. Retaining your customers

           The major goal of creating a loyalty program is to retain existing customers by rewarding them to encourage repeat purchase behavior. In other words, customer loyalty program is a tool and strategy in retaining customers by giving them a solid motive to buy again from the company and brand or stores and establishing a ‘purchase habit’. Moreover, we all know that cost for acquiring new customers is much more expensive than retaining existing customers through loyalty programs. Some of the top and well-known loyalty programs in the Philippines are: SM Advantage Card, E-Plus, BPI Real Thrills and Robinsons Rewards Card. These big companies successfully grew their revenue by encouraging repeat purchase and be loyal to their brand instead of going to their competitors. 

 

2. Relevant consumer data


            Data collection is the process of gathering and measuring information on variables of interest it usually entails research such as surveys and FGDs (Focus Group Discussion), it can be very costly, but with loyalty program, you don’t need to undergo through all these hassles. 

Normally, when you run your customer loyalty program, consumer data gets recorded onto the company’s system or database as soon as a shopper or a purchaser registers for your loyalty program. Data is important for you to study who your customers are and make pertinent business strategies and marketing campaigns. The success of your business is more secured by having data-driven business strategies. 

 

3. Improving Customer Communication

           Loyalty program offers a direct line to your customers and therefore, communication is much easy. Customer loyalty programs normally collects data as mentioned above and you may use specific data like mobile numbers and email addresses to connect and communicate with your customers. Getting consumer data is typically expensive and entails tedious effort but with loyalty program, it will be easier for you not only to collect important data but also communicating with your customers. You can communicate various activities about your company, brand or stores from special offers, exclusive promos or company news or just by sending them greetings during their special days as you already have these data useful to get closer to your customers through their emails and mobile numbers.

 

Final Thoughts

 

With the ever changing and highly competitive market, business owners should always know the market trends and loyalty program is one of the most important marketing trends they should not neglect. Sodexo Benefits and Rewards, the leader in producing vouchers in the Philippines offers effective solutions for loyalty programs such as Sodexo Premium Pass, considered as the best gift certificate in the country with widest merchant network accepted in over 10,000 merchant outlets nationwide and Sodexo Mobile Pass, a hassle-free digital voucher solution for loyalty program. Find out more about Sodexo Mobile Pass at http://ph.benefits-rewards.sodexo.com/corporate-clients/mobile-pass

For more hassle free and digital solutions, click here.

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