The Customer Loyalty Programmes are marketing strategies that companies encourage their customers to increase the frequency of their markets by providing particular incentives. The programs are able to cover most types of businesses that are customized according to the specific characteristics of each business.
Customer loyalty programs were introduced in the early 18th century in America, and so far applied in the form of box-top and card that methods have passed into the background in recent years.The customer loyalty programs because of e-commerce growth,new technologies and low implementation costs, it is an important growth driver of sales at eshop.It is very powerful tool in the hands of large and medium sized companies to to strengthen their relationship with existing customers increasing profits. Consumers now have the means and they are better informed about their favorite companies and products.The internet with various of information and communication channels (eg Social Media, News Portals, emails, etc.) provides immediate and comprehensive picture of their favorite brands.
Surveys carried out in a group of commercial companies loyal consumers showed that consumers with these characteristics is willing to buy new products 50% and spend 31% more money than new customers.You can distinguish how important it is for your business to have a base of faithful - satisfied customers. What we need to do on your part is to give your customers the right reasons to stay loyal and satisfied customers.
Another survey conducted by the Colloquy company in our Customer Loyalty gave the following data:
• 56% of consumers participating in customer loyalty programs because they earn points and rewards which can be redeemed through discount on products or services.
• Consumers continue to participate and to be loyal customers of 75% if the bids and awards received are on their preferences.
• 48% of consumers consider it necessary an enterprise to have mobile application.
This rate in recent years is rapidly increasing and shows us oriented consumers and what they want from each company
• contrary businesses lose 56% of loyal customers when products are offered at a discount and gifts are not to their liking, and 54% because it is very difficult to collect enough points to redeem.
From the figures we saw why consumers follow or leave the customer loyalty programs, Below we will mention some of the ways that a company can strengthen its relationship with its consumers and therefore to increase its profits:
• Rewarding loyal consumers with gifts, credits and discounts on various products. If a consumer knows that you intend to reward him for future purchases, then increase sharply the possibility to buy products from your business more frequently.
• Create smart discount vouchers (discount coupons). Do not put the consumer in the process of searching or doing copy paste the code, then the process is as simplistic.
• Ask the customer to write a review for one of your products and reward him with a discount on the next purchase. This process will greatly strengthen your relationship and consequent sales.
• Reward your consumers any recommendation to make at contacts and friends about your online store, by saying the gifts or discounts.
• In "Members" offering exclusive rights and benefits, such as exclusive products and services or individual offers and discounts based on their personal interests .
• Offer facilities on payment. Give more of the classical forms of payment in order to facilitate your customers in their markets.
• Continuous and multichannel communication (eg social media, email, applications, etc.) With your customers in order to keep them active and be reminded of your presence.
The results of the survey conducted by the LoyaltyLion highlighted that a successful customer loyalty program earns from € 14 to € 32 profit for every 1 € you invested, reflecting the importance and effectiveness. Loyalty programs enable you to become competitive without lowering your prices without increasing your advertising costs (acquisition cost).Focusing your action in the long-term benefits you will gain by broadening the base of your loyal customers.
The customer loyalty programs are a very powerful tool that can give you the edge over your competitors and consolidate your eShop market.
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