Why Should You Have A Customer Loyalty Program?

Typically, the focus for businesses is put on attracting new customers – not looking after existing ones. While it’s understandable that you want to grow your customer base, you should also be looking at how you can convince them to buy from you again.

One of the best ways to influence purchasing behaviours is to implement a customer loyalty program. Done efficiently and effectively, it has the power to transform your business and enable growth for years to come. Here’s why.

Retain customers

Customer retention can be one of the best and most cost-effective ways of growing your business. On average, acquiring new customers can cost you five times more than retaining existing ones and, considering loyal customers are believed to spend around 67% more (Inc. Magazine), it’s clear to see why you should split your efforts between the two. KCPOS point of sale (POS) solution provides you with valuable insights into your customers, including order history and referrals. Use this information to deliver a unique service with a scheme that is tailored to their shopping habits, including personalised offers and pre-sale access.

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Edge out the competition

While the primary objective of a loyalty program is to retain existing customers, don’t underestimate it’s influence when prospects compare your business to your competitors. Today, it’s very rare for purchasing decisions to come solely down to price when the experience is much more important. A loyalty program appeals to customer emotions and will reward them for something that may go unnoticed with other companies.

Build relationships

As we touched on previously, building an emotional connection through a personalised service can be key to encouraging loyalty. A strong relationship with customers will not only encourage repeat purchase again and again, but will also likely result in referrals and promotion on their part to family and friends – completely free to you!

Adapt to the market

Having a better understanding of your customers and their purchasing trends will give you a more accurate picture of the current market. Determine which items are repurchased on a regular basis and those that remain sat on your shelves so that you can make changes to your product line and overall marketing strategy. Think price reductions and promotions to start.

To us, the benefits are clear. If you’d like to find out more about how KCPOS can help you to implement an effective loyalty program for your business, get in touch with our team using the contact form at the top of this page.

Author: Rachel Hand

Published on: August 25, 2021

Categories: Article

Tags: customer loyalty, loyalty programme