Most people must have heard the phrase “customer is king’ but only people running a business can validate its truth and relevance. Customers drive business goals and profit in the long run. But are all customers the same? Definitely not. 

From all the customers a business has, there would be certainly a pool of customers that consistently buy from you. Loyal and trustable customers of any brand should be rewarded and acknowledged. But how? And that’s where customer loyalty programs come to a business’s rescue.

Did you know? Customer retention of even 5% can increase your chance of profit to about 95%. A Harvard Business Review (HBR) found that retaining a customer is paramount for any business. It also observed that in many cases, new customer acquisition can be up to 25 times more costly to companies. So, if you focus on building a loyal pool of customers, your stairway to success becomes way easier.

Today, brands can easily onboard through QueueBuster customer rewards management software, which offers customers the benefit of good loyalty programs. However, this article will show you the 10 benefits of having a customer loyalty program for your retail store.

What is a Customer Loyalty Program?

Retailers and other businesses offer customer loyalty programs to customers who purchase and shop regularly from their retail stores. The benefits of a customer loyalty program can be in the form of discounts, coupons, incentives, special gifts, freebies and redemptions. 

We all know that having favourites when it comes to a parent-children dynamic can be tricky but we all have our favourite brands. Now, loyalty is a two-way street. If your customers regularly buy your products or avail of your services, you have to return their loyalty. Sounds like a complicated task? Not when you have the help of Loyalty Management Software that automatically offers benefits.

Any customer can join the loyalty program by enrolling or getting themselves a membership card from the outlet or website. If you’re not sure, you can always get a free demo from companies like QuebueBuster. 

7 Benefits of a Customer Loyalty Program for Your Retail Store

Here are 7 reasons why you should definitely get a Customer Loyalty Program for your retail store:

1. Enhanced and Better Customer Engagement for the Brand

Who doesn’t love discounts? That’s right, no one, not even the grumpiest of customers. So, once you have created a loyal customer base and offered the loyalty membership, you automatically sign up for better engagement and brand presence. 

Cater to them more effectively by offering personalised offers and posting on social media platforms. Simply, with Discounts Management Software you will be able to do that efficiently. 

These loyal members are more likely to engage and interact with your social handles and products. All customers are king, but your loyal customers are emperors. 

2. Loyalty Programs Improve Customer Segmentation

A business can learn a lot about its customers buying behaviour through loyalty programs. With machine learning techniques and data analytics, software like the Customer Reward Management System by QueBuster is great for segregating customers based on many factors.

3. Helps in Better Customer Experience

Based on customer segments, brands can send communications and rewards accordingly. This will make the customer feel valued and appreciated. Over 80% of the customers feel positive when communicated in their personalised way through discounts and offers. 

Customer experience is key when it comes to business growth. Thus, improving customer experience has a direct effect on your business revenues. Good customer experiences can surely drive sales and increase profit. 

Personalised attention with emotional touch through Customer Loyalty Programs can make your clients feel loved and happy. Building a good relationship with customers will have a positive outcome for your business in the long run.

4. Better Revenue Growth Projections for the Brand

A good loyalty program in place can boost your profits to a large extent. This is the reason why many brands are still trying to build a concrete and rewardable loyalty program.

When loyal customers access their benefits, they are more likely to make a sale or purchase based on recommendations or suggestions. This ensures business revenue is flowing. The more incentives you give them, the higher chance they will return for a purchase. 

5. Builds Customer Retention Rates

People may come and go through your retail store, but the special ones always come back, again and again. But just like any other relationship, you have to make them feel special. You can’t take them for granted! You’ve to retain the special ones. 

Customer retention helps businesses to curate new products and offers as per customers’ intentions. For instance, through Coupon Management Software, giving personalised coupons to your customers means they will use them for future purchases. 

6. Create Organic Brand Ambassadors and Influencers

Good experiences are always part of most conversations. Thorough Customer Loyalty Programs, you can ensure your customers finish their shopping experience on a good note. Thus, they are likely to talk about it amongst other people creating an organic and honest brand promotion. All in all, your brand outreach amplifies.

Moreover, this is the age of influencers, and through Loyalty Management Software a business can find the right influencers and ambassadors.

7. Loyalty Program Increases Brand Trust

When a customer trusts a brand, he has an emotional connection to that brand. He/she will refer or suggest it to near and dear ones. Moreover, he/she can even review it on google and other platforms, showing the genuineness of the brand. A survey showed that most customers make purchases based on reviews and feedback.

A business can offer its loyal and happy customers user-generated content (UGS) like videos and images that will help to boost brand trust over the period. Trust is not hard to build when you have good Customer Rewards Management Software like QueueBuster at your service. 

How Can Multi Store Outlets Retain Customers With CRM and POS Solution?

Some Major Pros and Cons of Loyalty Programs

PROS	CONS
Highly increases the customer retention rate	When many brands offer similar loyalty programs, then there is market saturation for the customer
Capability to attract new customers as well	Many times, loyalty programs fail to get loyal and active customers. Hence, this can become a setback to loyalty schemes.
Gives business valid data and metrics about customer behaviours	Sometimes the data collected, cannot give you the right anticipation and motive of a customer. For example, with data, you cannot find which other sites the customer visited before your website visit.
Offers better communication with the right consumers. Communication helps gain customer shopping behaviour.	Many still find customer loyalty programs as gimmicks and just for their sake. This mostly happens with loyalty programs with low and unusable features for the customers.

Customer loyalty programs are a crucial aspect of any retail business. Customers are paramount and business needs to curate offers, discounts, freebies, and gifts according to customer shopping behaviours. 

Businesses can even integrate loyalty management software like coupons management software and discounts management software to offer wholesome loyalty programs to their regular buyers. To understand the program better, speak to an expert from QBuster. 

Business revenues depend on how a customer keeps the relationship with the brand. Remember, for businesses loyalty is royalty! 

Book a demo with QueBuster and get your hands on customer reward management software with affordable and customizable options. Visit the QueueBuster website and explore more about POS products, E-commerce, billings and other services.