As our previous articles mentioned, an effective customer loyalty program is a powerful business strategy. It has the potential to increase a business’s revenue and profitability drastically. This is because getting repeat customers is much cheaper than acquiring new ones. Plus, loyal customers tend to bring in more customers, which reduces your need for advertising.
Since customer loyalty programs are a crucial component of a business’s success strategy, having the right tools to implement loyalty campaigns is necessary for companies that want to grow.
So for today’s article, we’re looking at the 5 benefits of having customer loyalty software for small & medium businesses.
Reason #1 Better productivity
Getting reliable loyalty management software for your business removes a lot of cumbersome processes. This is because most of the tools you need – from data management to automated campaign implementation will be available on one hub. This eliminates the need for multiple programs, documents, and systems!
With the newfound free time your team gets from this upgrade, they can focus on more essential tasks to grow the business. Initiatives like new marketing ideas, product innovation, and brand building.
Aside from improving their productivity, they’ll also be less stressed since there are menial functions that can be automated. This boosts the morale of your people. Making your company an excellent place to work.
Reason #2 Better insight into your customers
Old loyalty management software (or, worse, spreadsheets) allows you to capture, manage, and review basic customer data. Information like name, address, birthday, etc., which are necessary to create personalized campaigns.
However, given the advent of the digital revolution, which included new marketing trends from e-commerce brands, those information aren’t as powerful as they once were.
Today, brands need more personalized customer information to build customized campaigns that work. They need access to buying patterns, preferences, and customer profiles. All this can be gathered from loyalty management software like ARLO.
This kind of access to information helps your team create a more intentional and personalized approach to engaging with your customers. Ultimately improving the likelihood that customers will buy from you.
Reason #3 Better marketing campaigns
With the amount of available relevant information to you and your team, you’ll be able to create better marketing campaigns for your existing and potential customers. You can use various data points to discover which products are worth pushing to which markets.
For instance, you see that college women are buying big bags you expect to sell to mothers. Then, you can pivot any marketing campaign you have to appeal to this market – giving you a better opportunity to sell more.
Moreover, you can also create more personalized campaigns for your customers by combining different data points on their profiles. This is important because 9 out of 10 customers appreciate customized offers.
Another thing you can do is offer a birthday discount on your customers’ favorite products. This would be something that would create delight and appreciation – solidifying the relationship between your business and your customers.
Reason #4 Better customer relationships
Using in-depth data to create marketing campaigns allows you to have more effective campaigns. Initiatives that are relevant, enticing, and delightful to your customers. Ultimately, these factors significantly contribute to building good brand-customer relationships.
And as we discussed in our previous articles, good relationships with your customers are productive relationships that bring more sales and generate more profit for your brand.
Reason #5 Better profitability
Customer loyalty software is designed to make your loyalty programs run smoothly by eliminating redundancies and bottlenecks. A lot of menial tasks can also be automated already on these platforms. An efficient loyalty management software can ultimately increase your company’s productivity without drastically increasing costs.
Moreover, by building better customer relationships and running better marketing campaigns, you can increase your revenue from existing customers and reduce customer acquisition costs. Studies show that loyalty programs can generate as much as 200% ROI – making it a viable profit-creator for your business.
Combining these two would ultimately generate more profits for your business.
Whether you’re a small and medium business or a large multinational company, your business would enjoy all these benefits.