The Importance of the Customer Loyalty Program for Entrepreneurs

The Importance of the Customer Loyalty Program for Entrepreneurs

 Are you aware that selling your product to existing customers is much easier than offering your product to potential customers? This is because they already know what you have to offer and they like your product.

 However, this does not automatically make them loyal to you and prevents them from shopping at other stores. When there are more attractive offers from other stores, your loyal customers can leave you immediately. However, you don’t need to worry, because the loyalty program can save you from that scenario.

 Loyalty programs are a way to satisfy your customers with discounts, gifts, coupons, or special offers. This is one of the most effective ways to retain your current customers while attracting new customers. If you don’t have an idea about what kind of loyalty program you will offer, the following examples of creative and innovative loyalty programs can inspire you. And if you need flowers, then cheap flower delivery offers an attractive customer loyalty program.

 Various perspectives on customer loyalty programs

 The focus on company growth can be seen from a variety of perspectives. In an internal company, innovation that continues to be encouraged by a variety of product testing is an example. While in front of consumers, maintaining the sustainability of company growth can be done with a loyalty program.

 Loyalty programs can give customers access to new products, special vouchers or free products. Programs that aim to reward loyal customers usually begin by identifying the user’s buying activities, because users usually register their personal information with the company and are given a unique identifier, such as a user ID, and use the identifier when making a purchase.

 Based on different business models and business scopes, these four companies have implemented a loyalty program, and you can copy and adjust for growth hacking in the business you are starting.

 7 Effective Loyalty Program Ideas

 The company must design this customer loyalty programs well. Because, as with other strategies, this can be double-edged. Instead of getting a profit, without careful calculation, it can cause losses.

 For that, there is no harm in imitating and modifying the loyalty programs of other companies that have proven profitable. As this article describes the following.

 1. Loyalty Point

 Loyalty points are the most common loyalty program run by various companies. This program gives users points for every particular transaction that a customer makes. This point applies multiples. So, the more transactions customers make, the more points they get.

 These points can later be exchanged with various other products or services from the company. If the company can work together with other parties, this point can also be applied cross. So transactions in company A can get points for company B, and vice versa. Thus, collaboration occurs between companies, and not competition.

 2. Cashback Program

 This loyalty program has a system similar to points. It’s just that some customers may prefer to raise numbers like real money, not points. So the cashback program can be more attractive to them.

 In this loyalty program, for every transaction with a certain nominal, customers get cashback. Cashback cannot be cashed, but can be transacted with the company again.

 Thus, the longer the more transactions will be made. Because for every cashback that customers get, they will be more motivated and feel sorry if not used. This is what triggers repeated transactions that benefit the company.

 3. Loyalty Membership Program

 This loyalty program provides an offer to become a member of a club that the company forms. Members of the club can receive attractive offers from companies, whether in the form of discounts or others.

 This membership program is very useful. Because, by opening a membership program, the company already has regular customers. This customer can later be the basis for launching new products or services.

4. Tiered Membership Program

 This loyalty program is a development from the previous program. The multilevel membership program offers customers to upgrade membership. For example, from ordinary to VIP, from VIP to premium, and so on. Of course, each level has an advantage over the level below it.

 An example that often uses this system is a credit card service provider company. Usually every company has a member of a certain level of credit card holders, from silver, gold, to platinum. Each level provides different benefits, the more upward the greater.

 Although it looks interesting, this program requires careful calculation. Besides, this program is more effective for old customers than new customers.

 5. Channel Program

 This loyalty program is very effective to be used by tourist management companies. If visitors usually have to pay for a one-time ticket to enter the tourist zone, this time the ticket can be used multiple times.

 A well-known example is that adopted by Dufan, Ancol. By providing a ticket for the canal, the company has received a guarantee of visitors. Profit conversions can later be obtained from the sale of other support services such as food, drinks, and so on.

 Industries that have also implemented this program include football, hospitality, education (courses & lessons), and others.

 6. Social Service Program

 Who says the loyalty program is always about money? This loyalty program does not provide economic benefits to its customers, but rather arouses their good feelings. For each transaction with a certain value, the company will donate many funds for social services.

 This program is very effective, both to increase customer loyalty, or to do branding for the company. Nothing wrong, the longer, more and more companies are using this loyalty program. For the long term, this policy is very good to do.

 An example of a company implementing this program is Aqua. At that time, for each gallon of Aqua sold, the company set aside a certain amount for the manufacture of water sources in remote villages. This system can be applied by other companies, of course with different goals that are still related to the field of the company.

 7. Limited Event Programs

 This loyalty program is very powerful and effective because it can be made general or very personal. In general, for each seasonal or annual event, the company can provide benefits for customers such as discounts, free service, and others. This can be given to customers who have transacted for a certain period.

 This loyalty program can also be implemented personally. Companies can provide benefits to customers during special times for customers, such as their birthdays. Of course the company must already have data about this beforehand.

 This limited event program has proven to be very effective in increasing customer loyalty. This is because customers feel cared for and cared for.

 8. Partnership Program

 This loyalty program provides an opportunity for customers to become partners of the company. Customers who are satisfied with the company’s products and services will be happy to invite other potential customers. By providing attractive incentives and rewards, the intensity of inviting and sharing can be increased.

 In the long run, companies can transfer marketing and promotion costs to this program. The effect is that costs will decrease, and income will increase.