Why are loyalty programs one of the most successful methods of attracting customers and outperforming competitors?
Loyalty programs or customer loyalty strategies are rewards and gifting programs that aim to increase customer loyalty and retention. These programs are based on giving the customer some points for each visit or purchase. These points can be redeemed later for rewards that increase customer loyalty to your store.
These programs are considered one of the most successful strategies for loyalty and methods of attracting customers and outperforming competitors, and they have shown their success in many restaurants, shops, and major brands, as studies have proven by statistics.
In this article, we will learn why loyalty programs are one of the most successful strategies for attracting and retaining customers.
- 1. The probability of selling to an existing customer is 60%-70%:
- 2. It costs 5 to 25 times more to acquire and attract a new customer than it does to maintain an existing one:
- 3. 65% of the brand’s revenue comes from existing customers:
- 4. More than 70% of consumers are more likely to recommend a brand if it has a good loyalty program:
- 5. 63% of millennials and Generation Z won’t be attached to a brand that doesn’t have a loyalty program:
- 6. 75% of customers said they would buy again if they got a loyalty reward:
- 7. Brands with strong rewards programs earn 2.5 times more profits than their competitors:
1. The probability of selling to an existing customer is 60%-70%:
Yes, this makes a lot of sense. The current customer, who has dealt with your brand at least once, is aware of the quality of your service and products. You will not have any trouble in marketing your services to him. Rather, the probability of selling to him will be high 60-70% compared to the new customer, which ranges between 5-20%.
2. It costs 5 to 25 times more to acquire and attract a new customer than it does to maintain an existing one:
Source: (Harvard Business Review)
How do you attract a new customer to your brand? To convert a potential customer, it has to go through several stages. Brand awareness stage,consideration. Then the buying stage. And you have to market to each customer at each stage in a special way. Of course, this process is tiring and expensive, but once you get the customer, the cost of maintaining him is much cheaper, according to this study.
Therefore, you should think about using customer loyalty programs, the most successful customer retention strategies.
3. 65% of the brand’s revenue comes from existing customers:
Another reason to consider customer loyalty. According to this study, the profits achieved by the brand 65% of it come from existing customers who have made a purchase even once.
4. More than 70% of consumers are more likely to recommend a brand if it has a good loyalty program:
Here we come to the importance of loyalty programs And their effectiveness in increasing the loyalty of your customers to your brand. According to the study, more than 70% of customers said that they suggest brands that have a good loyalty program. This inevitably indicates their satisfaction and confidence in these brands. The loyalty programs we offer here at Resal boonus are also considered one of the most successful methods of attracting customers, maintaining existing customers, and increasing their loyalty.
5. 63% of millennials and Generation Z won’t be attached to a brand that doesn’t have a loyalty program:
Rewarding customers with discounts and free services has become a necessity at this time. So we see that millennials and Generation Z, who have hundreds of choices in brands, prefer brands that implement loyalty programs as it helps helps them stay loyal and return even more.
That’s why we help you here at Resal Boonus to implement the latest and most successful loyalty programs to win the loyalty of your customers of all groups and ages.
6. 75% of customers said they would buy again if they got a loyalty reward:
This number is logical, rewarding a behavior helps a lot to repeat it. Rewarding customers with points in each visit and redeeming those points with rewards increases the satisfaction of your customers with your brand. Increases their retention rate. It also motivates them to come back to you again.
7. Brands with strong rewards programs earn 2.5 times more profits than their competitors:
Source: (Harvard Business Review)
Customers want value and the right price. They also want premium services and a good relationship with the brand. Using loyalty programs guarantees all of this and more. And of course, the more satisfied your customers are with your program and your brand, the more they will return to you and not replace you with one of the competitors. And what does this mean? An increase in your profits.
As mentioned earlier, customer loyalty programs are one of the easiest strategies to increase and maintain customer loyalty. It is also considered one of the most important methods of attracting customers and outperforming competitors. That is why, with boonus, we provide you with the easiest and most successful various loyalty programs. In addition to a large selection of various digital cards to help you increase the loyalty of your customers and keep them.
What are you waiting for now? Visit Resal boonus and enjoy a lot of features to increase the loyalty of your customers