The Power of Loyalty Programs

Photo by Noorulabdeen Ahmad on Unsplash

I read over 30 articles

Viewed over 15 hours of video

Just for one discount lesson

To learn how loyalty programs improve

• brand loyalty
• building trust
• customer lifetime value

This is what I learned

Brand loyalty

Brand loyalty is fostered through loyalty programs that provide

• rewards
• discounts and
• special incentives

to attract and retain customers

These programs promote repeat business by rewarding customers for their brand loyalty

Why should you care?

Well, its hard enough bringing in new customers

Studies show that it costs 5–25 times more to get a new customer compared to keeping existing customers

Retaining customers costs a lot less than acquiring new ones

Basically, it’s cheaper to keep her

Who should be focusing on retention?

Here’s a screenshot from a Shopify video I studied

If you’re just starting your business, focus on acquiring

If you have been doing business, focus on retention

Why does customer retention matter?

This is the best part

There are tons of studies agreeing on one thing

Repeat customers pay much more than new customers

In fact, they pay 67% more

and their customer lifetime value goes way up

more on that later

Building Trust

You need three things to establish audience loyalty

1. reputation
2. credibility
3. integrity

Reputation, credibility, and integrity serve one main purpose

Building Trust

How do you build trust?

Publish helpful content like this

Share what you find

As Justin Welsh has taught me

• Do the research
• Provide your findings
• Explain your takeaways

Customer Lifetime Value

I have to admit, I didn’t care for this till I learned more

Now, I restructured for customer retention

Why?

Because 65% of revenue comes from repeat business

Loyal customers purchase 90% more frequently than new customers

Microsoft found that a 7% increase in brand loyalty increases CLV by 85%.

60% of loyal customers promote business through word of mouth

So many numbers

So many percentages

Let me make this simple

Rewarding your customers makes you money

But you can’t just create a loyalty discount program and expect to succeed

Loyalty programs need a strategy behind them before you can apply it.

And the thing about this strategy its not for everyone

But, there are plenty of other Discount Strategies that you can use if this one isn’t for you

In my upcoming course, you can learn more about all the discount strategies you can apply to your business in order to Build brand awareness, Build reputation, and Increase sales.

https://www.theonepersonstartup.com/discount-strategies