9 Reasons Specialty Retailers Need Loyalty Marketing

Young girl buying a bouquet of flowers benefits of customer loyalty programs

Retailers across the United States are beginning to recognize the benefits of customer loyalty programs for their business. A good loyalty program has the ability to transform any specialty retailer into something more. The end result is a comprehensive marketing plan for personalized customer engagement.

Influence Customer Behavior

Loyalty programs influence customer behavior through emotional connections and relationship building. Best of all, these programs build relationships with the top 20% of the customer base, who generate 70% of total revenue.

Companies large and small have experienced the benefits of engaging loyal customers. Below are ten important reasons why a specialty retailer should implement a loyalty marketing program today.

1. Boost Sales Growth

A loyalty program entices and incentivizes customers to return to the store. Did you know that repeat customers spend more money with each visit? It’s true. Some stores have experienced up to a 95% increase in sales from a 5% increase in customer retention.

2. New Customers

Some consumers determine whether or not to go to a store solely based upon the presence of a loyalty program. New customers are looking for value through VIP treatment and incentives. This can be a differentiator among the competition.

3. Maintain Relationships

Good relationships are all about frequent communication. A loyalty program keeps in steady contact with repeat customers to let them know about promotions and their rewards status. It’s a great way to keep in touch!

4. Mobile Marketing

Over 80% of consumers in the United States own a smartphone. On average, they check their phones 52 times a day. Loyalty programs organize all mobile marketing activities in order to send text, SMS, MMS, or email directly to customers.

5. Customer Feedback

Gathering feedback from loyal customers is another way specialty retailers can improve their services and products. Quick surveys can be sent via text or email that’s just as easy as sending a coupon or promotion.

6. Brand Advocates

Word-of-mouth advertising is one of the most effective marketing campaigns available. Loyal customers become brand advocates because they believe in the overall value they are getting. Because they believe in the brand, they will also promote the quality of service, products, and convenience to their friends and family.

7. Saves Money

It costs five times more to acquire a new customer than retaining one. So, a loyalty program can save money while quickly generating strong financial returns.

8. Social Media

People have increasingly turned to social media and online reviews when researching the best products and services available. A loyal customer base will provide online reviews and engage with people interested in the brands they love.

9. Gather Data

It’s easy to track marketing data through a loyalty program. Click-through rates and coupon redemption indicate which promotions were successful and the ones that failed to motivate customers. These lessons can also be applied to marketing to potential customers and how they will react to specific promotions.

Increased Engagement Through Communication

Competition for customers is fierce. So, retailers need to implement better, more productive ways to increase engagement or else lose ground to their competitors.

Increased communication with customers is key to staying at the top of their list when making purchasing decisions. That’s why the benefits of customer loyalty programs are a necessity in today’s retail environment.

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2019-09-27T17:47:07+00:00