What is Customer Loyalty & Why is it Important?
Customer loyalty is the secret to gaining continued success for your business. Without client loyalty promotions, you’ll have to work much harder to attract new customers, spend more money on acquiring new clients, and you’ll probably notice that each customer is spending less on each purchase. Why? Because loyal customers spend more money per transaction than non-loyal customers do. Plus, they are more likely to refer your company to friends, family, and colleagues—which is sure to increase profits.
And thanks to the digital age and the rise in using social media for businesses, it’s easier than ever to connect with customers—new or ongoing.
So, if you’re looking to increase sales and grow your business in the fastest way possible, you need to focus on loyalty promotions. Throughout this blog post, we’ll tell you exactly why customer loyalty is important for growing your businesses and increasing sales.
Customer Loyalty Explained
First, let’s take a moment to define customer loyalty. In short, consumer loyalty refers to ongoing or repeat customers, or clients who turn to you before anybody else. For example, if you shop at Target on a weekly basis, you’d be considered a loyal Target customer. If you bank at your hometown credit union on a regular basis, you’d be considered a loyal client.
Additionally, a loyal customer refers to a client who purchases a specific item on a regular basis. So, if you purchase a bag of dog food from your local pet supply store on a weekly basis, you’d be considered a loyal consumer. If you subscribe to satellite television on an ongoing basis, you’d be considered a loyal client of Dish Network.
However, customer loyalty basically boils down to one thing: When a consumer needs something that you can offer them, you are the first company they turn to, even if another corporation offers a better price or promotion. Why? Because customers trust your products and services and they know that you’ll do the best job possible.
How Loyalty Promotions Benefit You
With so many companies fighting for the attention of their customers, it’s harder than ever to achieve customer loyalty. Consumer loyalty isn’t easy by any means, but it is far more beneficial than spending all your time and energy on acquiring new customers. According to Access Development, consumer loyalty can lead to increased company profits, but also a variety of other benefits including the following:
- Willingness to provide feedback and testimonials
- Ongoing referrals to friends and family
- Understanding and patience with company mistakes
- Openness to receiving company newsletters, communications, and advertisements
- Excitement for trying new company products or services
- Willingness to stick with a company after price increases or any other changes to the business
So, how do you achieve customer loyalty in a world with so much competition? Offering loyalty programs and consumer incentives!
According to Social Annex, 87 percent of consumers welcome loyalty promotions and want companies to offer their customers rewards and incentives. While it takes time and effort to create an enticing loyalty program that gets results, it will be well worth it. Per Social Annex, customer loyalty efforts increase a company’s overall revenue by five to ten percent! Since loyal clients spend an average of five to twenty percent more per purchase than non-loyal customers do, consumer loyalty programs are the way to go.
Where Does Mpell Promotions Come In?
You may be worrying that consumer incentives and rewards will cost you more than they’re worth. But when you work with Mpell Promotions, you’ll only pay for the rewards that actually get redeemed. Plus, we handle all the details for you, including reporting, automation, and fulfillment. We make consumer loyalty as easy as possible, and we work to get you the biggest return on investment.
Mpell Promotions offers Visa gift cards, travel gift cards, shopping gift cards, consumer electronic rewards, and other various promotional incentives that bring you happy, loyal customers.
Plus, we make the redemption process easy and hassle-free. Just let us know which customers qualify to receive a reward, and we’ll send the gift code through email, web, P.O.S., or through U.S. Mail. We know what it takes to create loyal, engaged customers, and we look forward to helping you grow your business.