A LOYALTY PROGRAMM is a system of activities aimed at retaining and encouraging customers. The market has come to a stage of its development when there is a shift in efforts from attracting new customers to retaining and encouraging old ones.

This is because the effectiveness of advertising media is declining, and it is easier and cheaper to retain a customer than to attract a new one. There is another pattern - 20% of customers bring 80% of the profits. These are regular customers who buy more and come regularly. Such a customer is called a loyal customer.


INTRODUCING A LOYALTY PROGRAM IS REQUIRED

The introduction of a loyalty program is necessary in order to:
• to stimulate constant appeals of the client;
• create a database of clients;
• create a positive image of the company
• attract new customers.
Let's take a closer look at each of these tasks.

Stimulation of constant customer requests is a priority task of the loyalty program. A well-built loyalty program encourages the client to visit and purchase regularly. For example, when choosing a car wash, a customer is most likely to choose one where they will be given a discount or rewarded with a free polish treatment.

Formation of information base about clients. Sometimes this is the main task. The loyalty program allows you to collect information about the company's customer base and use it to establish feedback. In addition, the automation system allows you to record data on each visit to the client and his purchases. This information helps to understand customer needs, form a portrait of a regular customer, and also build a base for direct advertising. All this significantly increases the effectiveness of marketing and promotional activities and reduces their costs.

Building feedback through the database allows you to individually approach each client, which cannot but have a positive effect on the attitude of the buyer to the company.

The most effective advertising channel is recommendations from friends and relatives. Loyal customers attract new ones.

There are several types of loyalty programs. Depending on many factors: the standard of living and preferences of customers, the scope of the company and others. Here are the most popular ones:
• discount systems;
• discount storage systems;
• bonus systems;
• gift certificates and other pre-payment systems;
• provision of additional services based on customer identification.