Running a small business is not just about getting new customers; it is about how you can keep them. In fact, according to the research by a research-based company, increasing customer retention by just 5% can increase the profit by 35%+.
That is where the loyalty programs come in. No matter if you run a cafe, salon, online store or local business, a smart and efficient loyalty program can encourage repeat business, build trust among the users and customers and boost your revenue without increasing your marketing budget.
A loyalty program is a marketing strategy itself. Let’s dive into how it works and why more small businesses in India are now adopting loyalty programs than ever before.
The Real Problem:
Customer Drop Off After The First Order Or Purchase
Most of the small businesses are facing this issue: people generally come to them, and after making the first order or purchasing anything for the first time, they never return. But what about the customers who buy once and never return? The main challenge is that first-time buyers are expensive to acquire, but repeat customers or users are very important. 70% of the customers never return if not engaged post-purchase. Without a retention strategy, you are always starting from zero, which is a bad thing for business quality growth.
What Is A Loyalty Program
A loyalty program is actually a type of program that rewards customers for engaging with your business. This can be thought of as repeat purchases, referrals, social media engagement, and spending milestones. The customers can earn cashback, points, discounts, gifts, or exclusive access to premium service for their loyalty. This turns one-time buyers into repeated buyers and loyal customers.
Benefits Of Our Loyalty Program For Your Business
A. Encourage Repeat Business
The most obvious benefit of using our loyalty program for your business is that it increases repeat business. When you earn, you can give some discount or free cash to the user in return for their loyalty to your business continuity. As per research from a reputed research firm on loyalty, they have found that 79% of the consumers are more likely to continue doing business with brands that have a loyalty program, and it actually works well.
B. Builds Emotional Connection Between Business & Customers
Our loyalty programme is not just about the discounts; it is more than this. It is about how customers feel about your business and how they react. When you recognise and reward customers for their loyalty, they feel valued, appreciated and emotionally invested in your brand. This builds a very strong connection that ads and offers alone can’t create.
C. Boosts Word Of Mouth & Referrals
Marketing is always not just about running paid campaigns on Google AdWords, Meta, paper ads, display ads, or video ads; it is more than that. A successful loyalty programme can help your business to grow and increase your overall profit by 30% every year as per our own research. This number is huge, and if you invest more of your time in that, you can increase the percentage. But always focus on quality instead of quantity. A loyalty program is not always about offering discounts to the users or customers; it is about how you can keep them with push notifications rather than free cash, like access to your premium service for a time, etc.
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