Loyalty & Rewards
Getting new customers in your business is just the first step. To truly grow your business, you need to get your customers to come back more often and become loyal customers.
Historically, offering loyalty and rewards programs were expensive to start and implement, requiring an investment in technology and staffing, but not anymore! Times have changed because technology has made these programs much more affordable to local business owners.
Companies throughout the nation are now utilizing loyalty programs more often than ever before. These organizations understand the importance of retaining existing customers and choose to implement a system directed specifically at building customer loyalty.
What exactly is a loyalty program?
What exactly is a loyalty program, then? While the specifics of each program may differ, the premise remains the same: a loyalty program is a marketing system instituted by a business that rewards purchasing behavior, thus increasing the customer’s urge to stay loyal to the company. A loyalty program may offer convenience, store credit, prizes, or any other benefit that would entice the loyalty of a customer.
Of course, like all other marketing efforts, a well-crafted loyalty program requires resources that may currently be allocated toward other endeavors. If you have not yet implemented a loyalty program in your marketing strategy, or are unsure about its efficacy, consider the following eight reasons why a loyalty program may be a worthwhile option for you.
It’s never too early and it’s never too late to start your Loyalty and Rewards program.
Did you know?
Did you know that a 5% increase in customer loyalty can increase the average profit per customer by 25% -100%
But before we try to convince you why Xooker is the correct choice to be your partner, let us share with you information on the benefits of why you will want to implement a loyalty program.
What is the short answer to why you should have a Loyalty and Rewards program?
- They increase the frequency of customer visits (which is huge).
- Loyal customers statistically spend 9 to 18% more per transaction.
- They tell their family and friends about your brand at a higher rate.
- Mobile/Digital loyalty programs are now easier to implement and customize.
- They can be easy to manage.
Why Join Loyalty Programs
57.4% of customers said they join loyalty programs to save money, while 37.5% said they join loyalty programs to receive rewards.
69% of customers say their choice of business is influenced by where they can earn customer loyalty rewards.
83% of customers said loyalty programs make them more likely to continue doing business with certain companies.
Over 90% of companies that don’t currently offer a loyalty program don’t believe they need one. Today’s reality has changed. The customer base has changed. The age of your customers has changed and therefore you must change with the times to maintain your business traffic.
The truth is that loyalty is harder than ever, 68% of customers said their loyalty is more difficult for businesses to maintain than ever before because they have more choices. Because they have more choices, it is making it easier for them to find anything they want, at the best price, right from their phones.
Loyalty & Rewards
Why Join Loyalty Programs
57.4% of customers said they join loyalty programs to save money, while 37.5% said they join loyalty programs to receive rewards.
69% of customers say their choice of business is influenced by where they can earn customer loyalty rewards.
83% of customers said loyalty programs make them more likely to continue doing business with certain companies.
Over 90% of companies that don’t currently offer a loyalty program don’t believe they need one. Today’s reality has changed. The customer base has changed. The age of your customers has changed and therefore you must change with the times to maintain your business traffic.
The truth is that loyalty is harder than ever, 68% of customers said their loyalty is more difficult for businesses to maintain than ever before because they have more choices. Because they have more choices, it is making it easier for them to find anything they want, at the best price, right from their phones.
Get started immediately
After you make the decision to offer rewards to your customers the next most important thing is to choose the right company to partner with you that you can trust and will guide you on developing the strategy for your long-term success.
- 84 percent of customers are more likely to stick with a brand that offers a loyalty program.
- Loyalty programs boost revenue from customers who use them by 15% - 25% annually.
- Over 70% of customers are more likely to recommend a brand if it has a good loyalty program
- 60% of customers prefer rewards provided via their cell phones.
- 54% of customers say that they would consider doing more business with a company if they can receive loyalty rewards.
- Loyalty and Rewards program participants spend 67% more than new customers
Business today is more competitive than ever
Business today is more competitive than ever, and you need every advantage possible. Loyalty programs have a long track record of producing successful results.
We tell our local business partners the simple truth. If loyalty programs didn’t work then your multi-million-dollar, multi-billion-dollar competition wouldn’t have them, not alone push them constantly to every customer that comes into or interacts with their business. These companies have probably more dollars spent on their marketing research than the average local business generates in a year in revenue.
Demographics
The biggest buying demographic today is the millennials (born between 1981 – 1996). For any business to be successful in the long term you need to cater to this demographic. So, you better know what they want and how they want it if you’re going to earn them as a customer.
8 out of 10 millennials belong to at least 3 loyalty clubs.
2 out of 3 millennials stated they will not patronize a business that does not reward them for their loyalty.
6 out of 10 prefer loyalty and rewards provided via their mobile phone.
To be successful is not rocket science. Besides hard work, you need to find successful ideas and copy and implement them into your business.
Why Do Nationally Recognized Brands Continue to Budget for Marketing
BECAUSE THEY WORK! Recognize these brands? Starbucks, Nike, Walgreens, Sephora, and McDonald’s? These are just a few companies that understand the value of having a loyalty and rewards program. It is a cost-efficient way to encourage customers to visit more often, spend more money, and increase revenue and profits. Moreover, these programs collect data on our shopping and purchasing patterns, which helps the companies determine the best time to engage us and encourage us to return more frequently. That’s why it is crucial to have a partner who can provide marketing tools that utilize the data collected and technology to communicate with customers easily through their mobile devices.
Benefits
Of course, each type of loyalty program may yield wildly different results, but as a business owner, you should never overlook the fact that loyalty programs have been tested time and time again, and have proven to be successful in numerous industries.
When some business owners think of loyalty programs, they begin to imagine a large portion of existing resources being funneled away into a program that may or may not see success.
However, pursuing new customers is the true cost burden; an article in Forbes magazine asserts that keeping an existing customer is 10 times less expensive than acquiring a new one. Thus, even the resources you utilize in a loyalty program will most likely pale in comparison to the expense of finding new buyers.
Furthermore, depending on the scope of your rewards program, the slight expenses you incur by instituting a loyalty rewards program may be overshadowed by the additional business generated as a result.
Rewards programs can reduce your slow seasons. Depending on our business, there may be slow seasons, in which a loyalty program can help you boost your business during these slower times by giving customers a reason to shop. Many companies have found giving out more rewards during slow seasons with expiration dates prior to their busy season has increased their revenues.
These programs help you reduce costs because marketing to new customers is at a higher cost than maintaining your current customers. There’s an old saying in business that it costs ten times more to get a new customer than costs to keep a current one. But so many businesses get caught up with trying to get new business that they neglect their current customer base, it’s like they almost take them for granted.
When people sign up for your loyalty program, you are gathering critical information to help you communicate with them. You should collect their email address, and have them opt-in to your mobile VIP Club and your birthday club. Almost everyone likes to celebrate their birthday, and they don’t celebrate alone.
By sending them information about different sales and promotions you have going on, you can convince them to shop with you. Communicating with customers via email and text messages helps you nurture clients.
Data is not the golden egg, it’s the golden goose that keeps laying golden eggs. Collecting data on your customers helps you deliver personalized offers, deliver relevant rewards, communicate with members more effectively, and re-engage old customers.
aving a partner like Xooker that has the technology and machine learning (AI) techniques can finely segment your customers based on the type of products or services purchased, the value of purchases, frequency, trends, seasonality, and social behavior. Based on these user segments, the loyalty program can send communication for specific products and offers to such customers. Our technology can further segment these customers based on how they interact with the communications we send to them.
Thus, making it possible to further personalize the customer experience. 82% of customers feel more positive about a brand after engaging with personalized content. This significantly improves the efficiency of your marketing dollars.
While loyalty programs cater to current customers, they can also help you attract new ones. By incentivizing your customers to spread the word about your business and your exceptional loyalty program, their friends and colleagues may want to take advantage of your savings.
Having the programs that local consumers want and that they identify with your big chain competitors makes your brand reputation stand out from your other local competition.
Believe it or not, loyalty programs reduce discounts because members are chasing the reward and not a discount for every visit to your business. Members are willing to pay full price in order to receive credit towards obtaining their reward. Having the right strategy in place with the correct structure is the key to a successful program.
84% of companies that work to improve their customer experience report an increase in their revenue. Loyalty programs give you the ability to tailor your communication sent to each customer. Customers look forward to communication from your side when it is relevant for them.
Why Xooker
- We handle all the details
- We do more for less
- We provide all the technology to make your program a success!
- Provide you with all the marketing materials to promote your program.
- Mobile platform (your customers engage via their cell phone).
- Easy to implement
- Easy to manage
- Best value in the industry
Included in our package
Every loyalty program works a little differently. That’s why you need to learn what works best for your type of business. What’s the best way to engage with your customers?
Because of our experience, we know what works best for your industry.
We are not a “Do it Yourself” (DIY) platform. We do it for you so you can concentrate on your business
You are assigned an Executive Consultant that is your personal assistant to handle all of the details.
Over 50 years in Business
Over the years we have called on a lot of businesses that have told us “We don’t need a loyalty club, we’ve been here over 50 years, and everyone knows us”. Recently we learned that one of those companies recently closed its doors after 69 years in business. Why is it because new businesses opened in their area and their old clientele quit coming as often? The sad reality is that part of your customer base will die off, others will move and unfortunately, others will find another go-to competitor. The moral of the story is that none of us can rest on our laurels.
