How a well-run loyalty scheme can boost your business

Increasing customer engagement

One of the first and perhaps most important things your loyalty program can do is increase customer engagement.  A loyalty program is the perfect way to provide special benefits to your returning customers. This could be an exclusive offer, free shipping, an e-book or a webinar - the key is to give them real value. Satisfied customers are more likely to recommend your brand to their friends, so a loyalty scheme both attracts new customers and retains existing ones.

The rise of e-commerce has brought with it the rise of various price comparison platforms. Today, you can check which product is cheapest where with a single click. And while you may not be the one offering the best prices on the market, if you reward your loyal customers with cool benefits, there's no question who they'll buy from.  

And it's good to know: loyal shoppers are harder to convert to your competitors: regular shoppers are about 35% more likely to return to your site than non-loyalty program members.  

Revenue growth

A loyalty programme not only contributes to customer retention, but also has a direct impact on revenue growth.  It can increase the average order volume by up to 319%.

Loyal customers also leave more money with you: on average, customers who participate in the loyalty programme on e-commerce platforms spend 12-18% more.

Collecting customer data and information is the basis for effective marketing communications

A loyalty program can help you gather a lot of valuable data about your customers. In addition to email addresses, mailing addresses and purchase history, you get a comprehensive picture of your customers' preferences, interests and needs. And you can send them personalised campaigns and offers accordingly.  

You can also use data analysis to better understand which products or services attract the most customers. And with this information, you can further refine your business strategy.

Improve the branded customer experience

A loyalty programme creates unique and valuable customer experiences. The kind that make your brand stand out from the competition. A loyalty program offers opportunities for personalized offers, special events and access to exclusive products. When your customers get extra value, something they don't get from other brands, it increases their satisfaction and loyalty.

As you can see, there are countless opportunities in a loyalty program. However, it is important to keep in mind that your loyalty programme can only be successful if it is well structured, optimised, automated and offers attractive and valuable benefits to your customers.