This year retailers and consumers have increasingly relied on online markets due to the impact of Covid-19 on the High Streets. However, business owners should not assume their clients will stay loyal to their brand just because of current circumstances. It is vital to maintain a customer’s loyalty, otherwise, you face the risk of them turning to a competitor.
Importance Of Loyalty
Customer loyalty brings an abundance of benefits to a brand. One of the biggest benefits of customer loyalty programs is that they stop you from needing to compete on price alone. It allows you to make an emotional connection with the customer and reward them for choosing your business. If you keep your customers happy, you can create organic brand ambassadors. They’ll share your business with their friends, family, and potentially social media followers.
Current Loyalty Market
According to Forbes, there is an untapped potential of $200-billion in the loyalty market. In that same article, it was explained in 2017, 31% of the 1,001 people surveyed had never redeemed their credit card rewards. Businesses across the globe are trying to make the most of loyalty programs. They want to create systems where customers see their loyalty rewards more like currency. Companies want to develop programs which benefit both themselves and the consumer.
Sustained Growth
One of the driving factors behind the importance of loyalty programs is how digital the retail experience is becoming. It’s becoming apparent to many business owners their company cannot survive if they just occupy a physical space. A company needs to be online, and it needs to make itself as appealing as possible - especially when trying to gain new clients. Customers expect a lot from their retailers these days, so a business will need to offer incentives to earn the consumer’s time and money.
Covid-19 Impact
The pandemic this year strengthened the importance of an online presence, due to many chains shutting down or not being allowed to physically open. Loyalty schemes have increased in popularity in the UK during the pandemic. 34% of Brits said that membership makes them more loyal now vs 31% pre-lockdown. It’s clear that consumers want a brand they trust.
Going Forward
This year has shown the power of positivity. Your brand should make customers happy, and loyalty rewards helps with this. If you want to create a loyalty scheme or want to improve the model of yours, you need to speak to your customers to find out what they want. It is vital your company creates a consistent shopping experience for your customers.
Loyalty programs benefit both you and your clients. They are rewarded for their business, and you boost your customer retention and this can increase your profits. What are some ways you encourage loyalty from your customers?
