Businesses use customer loyalty programs to promote brand loyalty and encourage repeat business from new and existing customers. To understand why repeat business is essential for enterprises, here are three surprising facts about its impact on companies.
• Increasing customer retention by 5% can boost the overall profitability of a company by 75%.
• 61% of SMEs report that they generate more than 50% of their revenues from repeat customers.
• According to Marketing Tech Blog, the worth of loyal customers is approximately up to ten times as much as their first purchase.
It takes fewer resources for an enterprise to retain its customers than to acquire new ones. Many entrepreneurs are aware of this fact, and that is why most stores use loyalty card programs to engage and reward their regular customers. However, as mobile technologies such as mobile wallets and mobile payments continue to revolutionize the retail sector, the traditional card is increasingly becoming a thing of the past, and businesses need to adopt mobile loyalty programs to keep up with the competition.
What are the advantages of having mobile loyalty programs?
• They reduce the operational cost of businesses
You don't need as much money to invest in mobile loyalty programs as is the case with traditional cards. You also spend less time updating offers, and you can send them to all your customers instantly.
• They help you to understand your customers
Mobile loyalty programs provide insight into the purchase behavior of your clients which assists you to understand their needs. Using this information, you can send customers relevant offers at the right time. Based on market statistics, 75% of customers will most likely use loyalty programs if the promotions are relevant.
• Mobile loyalty programs improve customer relations
Through mobile loyalty programs, you can communicate directly with your customers at any stage of their purchase process. Excellent customer service is crucial for customer retention, as clients are 79% likely to defect to a competitor if they feel that you are offering poor customer service. Clients also want to access your rewards and redeem them with ease, which is what mobile loyalty helps you to achieve.
To help you get started with mobile loyalty programs, Netclearance has a turn-key mobile loyalty program that integrates seamlessly with our state-of-the-art beacon technologies.