customer loyalty programs deliver loyal customers
TRANSCRIPT
Customer Loyalty
Programs Deliver
Loyal Customers
Shopper Loyalty Rewards Inc
https://shopperloyaltyrewards.com
The International Journal of Business and Social Science (IJBSS) did a study on the
power of customer loyalty programs in bringing customers back. They say that loyalty
programs are the key to retaining a relationship with the consumers.
Building Relationships
IJBSS shares that 41 percent of hotel chains and 57 percent of airlines use rewards
programs for consumers depending on their commitment behavior. They say that a
typical household in the U.S. is part of at least 21 loyalty membership programs.
However, only a few of them are actively used because most of the loyalty programs
don’t have relevant rewards, have awful customer service, or have a reward structure
that is rigid.
Importance of Relationships
Offering rewards will enable a business to form a strong bond with outstanding
customers, encouraging them to spend more. However, the companies must know how
to create loyalty programs that are more targeted and diverse depending on the value of
each customer. They must offer bigger rewards for the consumers who purchase more.
IJBSS says businesses must recognize the needs and characters of their consumers. This
will permit them to create loyalty programs that are beneficial for the customer’s
lifestyle. The book The Loyalty Effect by Frederick Reichheld shares that creating loyalty
with at least five percent of the customers increases the profit by 25 percent to 100
percent.
RESOURCES:
https://shopperloyaltyrewards.com/
http://ijbssnet.com/journals/Vol_6_No_8_1_August_2015/8.pdf
http://blog.accessdevelopment.com/index.php/2013/11/the-ultimate-collection-
of-loyalty-statistics
Accenture Strategy notes that almost 52 percent of customers transferred to another
provider because of awful customer service. They add that once a customer leaves, 68
percent of them will never go back. However, 15 percent of shoppers will give the
product another shot after one awful encounter.
Customers make or break a business. The least that a business owner can do is repay
them for their loyalty and provide them quality service.