According to an Accenture report, there are already 3.3 billion loyalty memberships in the United States. Loyalty program dynamics are always developing to cater to the interests of newer audiences and to keep up with the ever-increasing competition. Retailers have strived to deliver the most pleasurable and rewarding loyalty points to their consumers. But why is this the case? This blog will discuss 5 most outstanding benefits of reward points for retail businesses
Overview
Retain current customers
One of the most significant benefits of a loyalty program is that it has an immediate and noticeable effect on customer retention. A retained client is a valuable asset to any company; they generate more money, are more likely to become brand advocates.
On average, loyal customers spend 67% more than new customers. This is a statistic you simply can not overlook. At the same time, gaining new clients might cost much more than keeping old ones. When you apply this mindset to your shop, you’ll realize how beneficial a reward points system can be. Many POS on the market nowadays, such as ConnectPOS, supports multiple loyalty platforms. This makes the reward points system sync with other business operations. Time- and labor-efficient – you name it!
Strengthen relationships with customers
Customer engagement is an essential aspect that has a direct influence on brand sustainability, especially over time. A brand that fails to connect with its target audience has a poor recall value and has difficulty building a trustworthy brand image. Retail reward points are a fantastic method to increase customer engagement. When customers are members of a brand’s loyalty or rewards program, they are more receptive to receiving emails or other marketing content from the company. The program itself provides total client engagement and supports the building of the brand-customer relationship.
Enhance brand advocates
Customers who spend money in your store and also generate new clients are truly valuable to every retail business. They are often referred to as “brand advocates.” This type of customer will tell their friends, family, and – for those on social media – their followers about your shop. According to a survey, 86% of devoted customers engage with their favorite company by spreading the word about it. You can indicate how much you value your existing clients and also get a new one by using a two-way reward points system. For example, retailers can give one consumer points and the other a discount off their first purchase if they refer a friend or family.
Build a personalized marketing campaign
When a customer registers for a retail reward points program, their information is stored in the company’s database. Companies may utilize this information for profiling their greatest customers and personalizing their services to certain groups of consumers. Because loyalty program data provide a comprehensive picture of consumer behavior, purchasing patterns, and preferences, it may be used to improve inventory management, pricing, and promotional planning that target specific customer types as well.
Boost sales
People who participate in loyalty programs in retail stores want to acquire something, such as reward points to purchase an item. When customers realize they’re near to accomplishing their goal, they spend more in order to enjoy the benefits sooner. This is because most customer reward points programs are tied to a certain purchase quantity. For example, have 1000 points on your card and get a 30% discount on your next purchase.
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Wrapping up
Reward points have many benefits for retail businesses, so why not try them today? If you want to know more about ConnectPOS, a leading point of sale provider that provides support on loyalty platforms, do not hesitate to contact us!