Why would your business need a New Zealand loyalty program? The most basic aim of a loyalty program is to ensure clients choose your business in preference to your competitors and are happy to refer customers to you. Of course this will not occur unless you are able to deliver the service or goods they want at a price that is comparable with the market. An effective loyalty program adds another dimension - it differentiates you from your competitors, it locks your clients in to dealing with your business, it gives you a competitive advantage. A loyalty program can help you to increase market share and lifetime value of customers. Satisfied clients who enjoy the benefits offered when they build points in your loyalty program will tell their colleagues and referral business will increase. It is a well-recognized fact that it is much more expensive to recruit new customers than it is to look after existing clients. A well-structured loyalty program will extend the life of a customer (the length of time they deal with you) and the amount they spend with you. eRewards' loyalty programs are self-funding because cost of reward points is directly proportional to sales volume. There are no surprises and you will see a real variable cost relationship between sales and cost. Rules surrounding the allocation of points can assist with cashflow management and reduce your aged debtors ledger, providing more financial certainty for your business. If your customers have relationships with complimentary businesses you could consider establishing a joint or multi party loyalty program with a more universal branding that will increase the earning power of participants and therefore their buy-in to the program. This approach can make the program even more valuable to the program sponsors.
What are the benefits of a loyalty program for your business?
- Increased sales
- Decreased client churn
- Access to more detailed client profile information
- Reduced emphasis on discounting
- Directly relate your marketing costs to sales
- Happy clients who feel appreciated
- Reduced cash flow issues