Nowadays retaining a customer in any business has become a biggest challenge. Brands spend huge amount of money in retaining customers. One of the strategies in retaining customer is the customer loyalty program. How does it work? In simple words the customers that tend to purchase product or services from same brand show their loyalty to that particular brand. The reason for such loyalty is that the customer tries to connect himself with the brand somewhere or other. It can be because of the product or customer service or may some other factor. In return rewarding the customer is called as customer loyalty program.
The brand should reward customers to keep them using the product or service more often, making it a part of their strategy. A loyal customer spends near about 65% more in purchasing than a new customer. Making the customer loyal increases the sales of the business. By rewarding such customers the brand will retain the customers which will be less costly & more beneficial than acquiring a new one.
Providing such loyalty programs by brands to the customers is the best way to thank them & a motivational factor for them to continue using the same brand. A loyal customer plays an important role in spreading the word about the brand to their professional, social & personal networks which only their customer base but also sale & revenue.
Hence, customer loyalty program is one of the solutions for retaining the customers. It can provide many benefits to brands like increasing sales, customer base & help them to serve better & develop strong relationship with customers.