Whether a business is small or large, it can reach another height by implementing a loyalty program in the right manner. Most brands are now running loyalty programs in India to attract more new customers and retain the existing ones. Research has also shown that businesses that run loyalty programs are more likely to achieve success in shorter time periods. Loyalty programs are the strategies that businesses use to boost brand loyalty by rewarding their customers for every purchase they make. These programs can benefit a business in many ways.
From achieving better customer retention rates to improving customer engagement, running customer loyalty programs in India can bring great results to a small business. Here are some most significant reasons why you should run a loyalty program to scale your business:
1. Better Customer Engagement
Engagement’ has become a new buzzword among businesses these days. By running a loyalty program, you can boost brand loyalty among your customers and as a result, they engage better. By running community-based or mission-based loyalty programs in India, you can make your customers feel that they are an important part of your brand’s community. This makes your customers feel closely connected to your brand and improves customer engagement. Rewards-based programs, tier-based programs, community-based programs, and charity-based programs are some best examples of loyalty programs for Indian consumers.
2. Increased Customer Retention
One of the greatest benefits of running a loyalty program is to improve your customer retention rate. Studies have shown that a 5% increase in customer retention rate can result in a 25% to 95% increase in the overall sales of a business. After this, the importance of customer retention need not be justified. As a small business, it becomes challenging to retain your customers as there are many competitive brands already running in the market. But by running an exciting loyalty program, you can give your customers an additional reason to stick with you. To make your loyalty rewards in India most effective, you must ensure that your loyalty program is valuable to your customers.
3. More Repeat Purchases
A loyalty program can act as a powerful tool to increase the number of repeat purchases for your business. When a customer purchases a product from your brand and gets rewarded after it, they are encouraged to buy more in order to earn more rewards. One of the best ways to maximize repeat purchases is to offer discount coupons for their next purchases. When you provide your customers with an opportunity to save some money on their next purchase, they will most likely come back to you instead of going to your competitive brand. Loyalty programs help you drive repeat business, which is one of the most effective ways to make your small business successful in lesser time.
4. Better Brand Reputation
Word-of-mouth can work very effectively in improving your brand image. When your customers are loyal, they will most likely recommend your products to their friends and family members. A good loyalty program doesn’t only help in customer retention but also plays a vital role in improving customer satisfaction. When your customers have a good experience with your brand, your brand image automatically improves. This further attracts more new customers to your business and you can achieve a larger customer base with minimum marketing effort.
5. Sales & Revenue Growth
Various companies have reported that their sales and revenue have increased amazingly after implementing a loyalty program. Consumers are more likely to spend on brands that run a loyalty program than businesses that do not have any such program. If you run a loyalty program that your customers are interested in, they are automatically encouraged to spend more on your brand. If you are running a small business in India, a loyalty program is a must-have to boost your sales & revenue and achieve success faster.
Scale Your Small Business With The Best Loyalty Programs
Loyalty programs can be of different types including rewards-based programs, cashback-based programs, tiered programs, spend-based programs, and many more. However, not all programs work well for every business. To run an effective loyalty program for Indian customers, you should first understand your business objectives and your customers’ interest areas. Once you identify these things, you can plan a program that aligns with your business goals.
You can partner with rewards and loyalty solution companies like RewardPort to run a consumer loyalty program that works effectively for your business. From taking every detail of your business into account to planning the best rewards for your customers, RewardPort can help you take your business to another level.