As an online business owner, you have to know that only 3% of new visitors that completed their first purchase will return to buy again. This is not a good statistic especially after you have spent a lot of time and money acquiring them. Before it is too late, you have to change things.
You should consider a loyalty program like Brand Bucks. A loyalty program is a marketing tool that is implemented by businesses seeking to reward the purchasing behavior of the customers. At the end of the day, it will increase the faithfulness of the customers to the brand or the overall company. The ultimate goal of loyalty programs is the retention of customers.
It is imperative that you understand how loyalty programs can help your online business. Here’s a list:
It will appeal to the customer’s emotion-With the digital revolution, it is easy for shoppers to compare prices in a few clicks. If the shoppers are just thinking about the products that you sell instead of your brand in general, you will find yourself competing with large stores like Amazon.
If you add loyalty programs, it will stop you from competing with large stores for the price. At the end of the day, you are differentiating your store thereby offering enhanced customer experience.
This is how you appeal to the customer’s emotion. Remember that a customer makes a purchase emotionally. If you sell products based on customer desire and reward them for that, they will surely go back for more.
It will increase CLV (Customer Lifetime Value)-CLV refers to the net profit credited to the overall relationship you will maintain with customers. Simply put, it will measure how valuable the customer is to you now and in the future. Loyalty programs will actually assist you in calculating the CLV of every customer.
The statistics will be used for implementing strategies that can help you retain customers. You can now monitor the steps your customers are taking before the purchase. This will ultimately allow you to reward them at every step to increase CLV.
It can help build personal relationships- Keep in mind that loyalty programs not only seek to increase sales but also build a lasting relationship with the customers. To build personal relationships, you have to value the customers.
If you treat your customers right, it will increase the chances that existing clients will share the joy to people around them. Remember that the more a customer feels appreciated, the more he/she is likely to support the company and recommend it to others.
It can create brand advocates-You just think that valuable customers are the ones spending money. However, the most valuable customers will be the ones generating it. These are called brand advocates. You have to know that brand advocates feel that it is their responsibility to help family and friends to make smart buying decisions. Brand advocates will work on acquiring more customers and increasing the loyalty of existing ones.
Conclusion-Many business owners think that loyalty programs are expensive. According to a study conducted by Forbes in 2013, the cost of keeping an existing customer is seven times lesser compared to the cost of acquiring a new one. With this, you have to implement loyalty programs for a more positive outcome.