Do you need a business loyalty program?
The answer is obvious - YES!
Customers are accustomed to the presence of loyalty programs and actively use them.
There are 17 loyalty programs per household on average. The top three most popular types include discount cards (93% of respondents), storage cards (83%) and cashback cards (77%).
WHAT IS THE LOYALTY PROGRAM FOR BUSINESS?
Dutch scientists conducted an industry study of 358 retail brands from 27 countries and proved that companies that implemented a loyalty program (there were 68%) received:
1. After 1 year - an increase in total sales by 7% and gross profit by 6% (relative to the control group)
2. After 3 years - total sales increased by 11%, gross profit - by 6%. As a result, a loyalty program is a really effective way to increase business revenue.
What can a business do to increase the effectiveness of a loyalty program?
• Optimize customer acquisition cost
Thanks to the loyalty program, a large array of customer data is accumulated: socio-demographic characteristics, interests, purchase history.
This information should be used to set up advertising, thus reducing the cost of CPC and CPV and increasing conversion.
• Reduce operating costs.
One of the easiest options is to abandon plastic cards in favor of virtual ones. This is especially true for companies with a large customer base.
Thus, the fashion company 12 Storeez saved $2,200 on issuing plastic cards in 2 months, and the Domovoy chain of household goods saved $8,000 in a year. In addition, it is more environmentally friendly, simplifies logistics and makes the brand more modern in the eyes of the buyer.
• Abandon SMS in favor of less expensive communication channels.
Using mobile applications, you can send push notifications or personal offers directly to the user's personal account.
Such mailing is more efficient and more cost-effective.
The CartaMe application implements all the possibilities to increase the efficiency of the loyalty program in any field of activity.