There is a lot of debate in the online business world around whether or not loyalty programs are worth undertaking. In this competitive e-Commerce landscape, businesses need to utilize as many useful marketing tools as possible in order to stay ahead of the competition and loyalty programs can be a vital marketing tactic that presents several benefits to businesses.
The types of loyalty programs can vary from providing fixed discounts for extra goods purchased, to providing a prize. Understanding how to make effective use of online loyalty programs is key to getting value from it.
Here are some key factors to consider on how to grow your business with online loyalty programs:
• Aim to Acquire Data And Not Just Repeat Visits
There is a common misconception out in the marketing world that loyalty programs alone will secure repeat visits from potential consumers and businesses will end up with buyers for life. Unfortunately, this is not the case. Effective use of loyalty programs is acquiring data from consumers, pertaining to their shopping habits, product preferences; essentially, what makes the consumer sway in the direction of true loyalty.
• Try to Win Back Consumers Who Were Previously Profitable
According to Jill Griffin’s and Michael Lowenstein book entitled Customer Winback, there are many reasons why customer winback has a greater chance of success than acquisition of new customers. Unlike newly acquired customers, businesses have valuable information from their lost customers, such as past purchases, contact information, preferred means of communication, etc.
• Tailor Products And Services To Meet Consumers Needs
Making a point to get to know your consumers online shopping preferences and habits can provide valuable information on how to deliver a more personalized approach to providing goods and services. By adding a sense of “personal touch”, over time consumers will develop a feeling of trust and appreciation towards a business making such extra effort. Fostering a healthy consumer and retail business relationship results in a happy consumer and greater profit for the business.
These are just a few of the ways businesses can grow with the use of online loyalty programs. If your business is considering adding loyalty programs to your marketing strategy, a trip to the Internet will present you an abundance of information relating to loyalty programs, best practices and concepts.