Customer loyalty is critical to business success. As per research, over 80% of companies admit that retaining customers is cheaper than getting new ones. Also, at least 75% of consumers accept that they prefer brands that offer rewards. If your Australian company hasn’t launched a loyalty program yet but thinking of one, this guide will help you choose and design one of the best loyalty programs in Australia.
Did you know getting new customers is five times costlier than retaining existing ones? Also, at least half of your existing consumers are more likely to invest in your new products/services.
Whether or not you are using a loyalty program to retain your existing customers, the facts above clearly indicate the importance of rewards to retain customers.
In this guide, you will find all the important things associated with loyalty programs in Australia.
What is Customer Loyalty?
It can be defined as an individual’s willingness to return to a brand to get its services or buy its products. It happens due to the buyer’s exceptional experience with the brand.
Several businesses use customer loyalty programs to provide their existing consumers with something extra. In return, they get repeated purchases from their customers.
Why is Customer Loyalty Necessary?
As discussed above, winning new customers is harder than retaining the existing ones. It suggests that customer loyalty is necessary for all businesses to grow.
Loyalty programs not only help retain existing customers but also be useful in getting new clients. When people are happy with a brand, they talk about it in front of others. And, it makes others aware of a brand and its amazing services.
Benefits of Customer Loyalty Programs
Apart from retaining customers, a customer loyalty program helps businesses in many other ways. They include:
- Increased Faith
A reward program not only gives people something extra but also makes them feel that a brand cares about them. This increases their trust in the brand. They find a special connection with the company and tend to stay loyal to it for a long time.
- Brand Promotion
Businesses spend a lot of money to reach their potential audience and make people aware of their products/services. A customer loyalty program is a cost-effective and highly useful scheme to promote a business and its services. How?
Everyone loves something extra when they buy a company’s product. When they are satisfied with a brand and its loyalty program, they become the company’s messengers to spread a word about it. When these happy customers meet others, they tell people about the company. It helps in brand promotion and get more customers.
- More Business
A lot of businesses have a hunch that customer loyalty programs are expensive schemes that cost a lot. However, the reality is that loyalty programs in Australia help businesses get more businesses and grow. During these rewards, businesses have to provide something extra to their customers. In return, they get people who stay loyal for a long time.
Types of Loyalty Programs Businesses can Use
There are multiple kinds of customer loyalty programs a company can use to retain customers and get new ones. They include:
- Cashback
- Point-based schemes
- Value-based programs
- Game-based schemes
- Paid programs
Although all of these programs are highly effective, not all of them work for all kinds of businesses. If you are thinking of one of loyalty programs in Australia, hire an experienced company that has been helping businesses launch customer loyalty programs and succeed in retaining customers and getting new ones. Find the best professionals, and make your program work. All the best!