What is the real value of loyalty programs, the marketing measures (rapidly going mobile, no less) that businesses employ to reward loyal customers?
In business and consumer relations, asserts the team at North American Bancard, loyalty programs serve the twofold benefit of allowing merchants to track customer habits and in turn provide more satisfying products or services.
“Customers receive points and gain access to special offers and discounts when participating in loyalty programs,” the credit card processing giant says on its blog.
A loyalty program can work in one of many different ways. With some businesses, loyalty programs offer discounts of 10% or more for periods extending anywhere from three months to a year. In other scenarios, a loyalty program might offer 25% discounts to customers who amass a certain dollar amount in purchases.
Two-thirds of U.S. consumers own at least two loyalty cards, with grocery stores accounting for the vast majority of usage. Customers receive discounts on marked items by swiping their cards at checkout, which in turn allows stores to track which items are most popular amongst loyal shoppers.
“For businesses of all sizes, fields and magnitudes, customer loyalty equals sales,” NAB explains. “Loyalty programs bring about customer satisfaction while helping merchants better refine their inventory. Businesses that employ these programs generally agree that loyalty is a boon to foot traffic and sales in today’s marketplace.”
Have loyalty programs worked for your business?