How to Grow Your Business: Loyalty Programs
Earlier this week, we shared an article on social media about the age of the digital punch card and creating brand advocates with a customer loyalty app. The effectiveness of these digital solutions is still up in the air around here. In order for it to work for your business, your customers have to be willing to not only install but consistently use the loyalty app. Otherwise, its of no value to them... or you.
But, whether you use a digital or traditional paper punch card system, loyalty programs can be huge for your business. It is marketing method that we always discuss during the GROW. stage of our marketing consulting. GROW. is our "3rd Stage of Marketing Maturity", and it is all about marketing to your existing customer base. The goal is to get your customers using your products/services more often and spending more money with you when they do. Our belief is that this is where growth really happens for your business.
Loyalty programs are one of many ways to accomplish this. (We will discuss other ideas in future Food for Thought posts.) They aren't right for every industry; however, there are many great applications for B2C companies... salons, restaurants, spas, clothing stores, etc. We found a good article that breaks down 12 different things that loyalty programs can do for your business. I will list them below and encourage you to read the full article when you get a chance.
- Keep customers
- Gain wallet share
- Prompt additional purchases
- Turn a profit
- Yield customer insight
- Marketing effectiveness insight
- Facilitate communication
- Service differentiation
- Enhance value proposition
- Cross branding
- Advertising and cross promotions
- Attract new customers
A loyalty program could very well be a nice addition to your marketing mix to market to your customer base. We would love to discuss this with you. If interested, please contact me at jennifer@RootedID.com.