Advantages of Customer Loyalty Programs

Source: (Business-opportunities.biz, 2015)

Customer Loyalty Programs are preferred by many big companies and it is due to the fact that it has a lot of advantages. Here is a list of advantages of the loyalty programs.

· These programs allow an organisation to put their focus on the best customers they have so that the customer satisfaction can be improved. Sometimes loyal customers are willing to pay more which will increase the cash flow to our business.

· These programs also help in bringing new customers to your company, maybe from the rival company or another segment of market. More new customers will come into the company if the programme offers a lot of value to them.

Source: (maxcdn.com, n.d.)

·  These programs also help in building up the relation between the company and the customer which may last for a life time. This also takes the consideration of your customer being taken away by your competitor out of the window.

·  Loyal customers also are like a marketing strategy without a lot of cost incurred. They recommend the company to other customers on every instance possible. A customer’s referral has more power to entice his family and friends than the advertisements or other marketing campaigns.

Source: (Shoptizen.co, 2015)

· Loyalty programmes also help in identification of the best customers of the company by placing spotlight on them. As they show the best clients, they are also very helpful in providing about the bad customers.

· These programmes also help in winning back the lost customers who were in the bracket of “good customers” but left the company due to some reasons. A company knows these customers and trust these people and vice-versa.

Source: (autovusolutioncs.com, n.d.)

I hope you all enjoyed reading the post. Share and comment down for more questions and to give feedbacks

Source: (thewisemarketer.com, 2010)

References

(n.d.). Retrieved from maxcdn.com: http://ngdata.wpengine.netdna-cdn.com/wp-content/uploads/customer-retention-benefits.jpg

(n.d.). Retrieved from autovusolutioncs.com: https://gb2.autovusolutions.com/WorkingFolder/27530/BlogPix/17/NotForgotton.jpg

(2010, August). Retrieved from thewisemarketer.com: http://www.thewisemarketer.com/features/read.asp?id=120

(2015, April). Retrieved from Business-opportunities.biz: http://www.business-opportunities.biz/wp-content/uploads/2015/04/advantages-to-owning-a-business-562x463.jpg

(2015, March). Retrieved from Shoptizen.co: http://www.shoptizen.co/wp-content/uploads/2015/03/Teaser-1.jpg