Customer loyalty programs help to generate reoccurring business from patrons, but they also assist you in collecting additional information regarding your target audience’s buying habits. According to a CRM Trends study, only about 12 to 15 percent of customers are loyal to only one brand, retailer or restaurant, but that 12 to 15 percent of customers generate between 55 and 70 percent of company sales. Your loyalty program ensures more reoccurring sales and more ways to understand and create relevant messages to market to your target audience in the future.
Using loyalty programs can also secure more customers as reoccurring patrons. By offering discounts after a certain number of visits to your establishment or by implementing discounts with the use of your loyalty card, can be the incentive a customer needs to frequent your business.
With more and more customers expecting messages that relate to their needs and interests loyalty programs are a great way to collect data. When a customer swipes their card, the bar code containing the consumer’s information is collected and the new purchasing data is then added to that individual consumer’s file. Allowing you to pull that data and create a message that relates directly to their interests based on past purchases.
Finally, according to dbmarketing.com, 94 percent of survey respondents who hold a loyalty card, believe the loyalty card had a moderate to strong influence on their purchasing decisions.
For information on how to implement a loyalty program, click here.