Thursday, February 27, 2020

8 Most Effective Loyalty Program to Increase Company Profits

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Loyalty Programs can be a breakthrough in the time required. In the tradition of selling, always known periods of decline or downtime. The cause is very diverse, can be internal or external companies. One solution is to create a loyalty program.

Literally, loyalty programs or loyalty means loyalty program. The explanation is simple, the loyalty program is the program design company to maintain regular customers transact with the company.

Effective Loyalty Program to Increase Company Profits

As we understand, much less generate sales from people who had dealings of the yet all together. The cost to acquire a new customer can even reach 10 times the cost for existing customers. Although, please note that the expansion is still necessary for the growth of the company.

Existing customers who entered into the transactions and are satisfied are inclined to spend money on larger companies anymore. This is certainly much more profitable than new potential customers who do not necessarily want to spend money because it has not been too trusting.

To maintain and care for the old customers, the loyalty program necessary and should be made by the company.

Companies must design well this loyalty program. Because, like any other strategy, this could be double-edged. Instead of getting a profit, without calculations done, it can cause harm.

For that, there's nothing wrong to mimic and modify loyalty programs of other companies that have proven profitable. This article describes as follows.

Loyalty points are the most common loyalty program run in various companies. This program gives points to users for each specific customer transaction did. This point applies to multiples. So, the more transactions that customers do, the more points they get.

These points can later be redeemed for a wide variety of other products or services of the company. Instead, if the company can cooperate with other parties, these points can also apply cross. So the transaction on a company can get points for company B, and vice versa. Thus, there is a collaboration among firms and not a competition.

The loyalty program has a similar system with points. It's just that, some customers may prefer to raise real money-similar figures, not in the form of points. So program cashback could be more attractive to them.

In the loyalty program, for every transaction with a certain nominal, customers get cashback. This cashback can not be refunded but can be traded again with the company.

Thus, the longer it will be more and more transactions are conducted. Because for every cashback customers get, they will be more motivated and feel pity when not in use. That causes recurring transactions that benefit the company.

This loyalty program providing the offer to become a member of a club that company forms. Members of the club can receive attractive offerings from the company, either in the form of discounts or other.

This membership program is very useful. Because, by opening the membership program, the company already has regular customers. These customers will be able to be the basis of the launch of new products or services.

The loyalty program is a development of the previous program. Multilevel membership programs offered to customers to upgrade a membership. For example, from the ordinary to VIP, from VIP to Premium, and so on. Of course, each level has more advantages than the level below it.

Examples often use these systems is a provider of credit card services. Usually, every company has a member cardholders a certain degree, from silver, gold, to platinum. Each level provides a different benefit that getting to the top will be even greater.

Although it seems interesting, this program requires careful calculation. Also, this program is more effectively applied to existing customers than new customers.

This loyalty program is effectively used by the company operating the sites. If usually, visitors have to pay a disposable ticket for admission to the tourist zone, this time the tickets can be used many times.

A well-known example is applied by dufan, Ancol. With provide season tickets, the company has already received guarantees their visitors. Conversion will benefit can be gained from the sale of other support services such as meals, drinks, and so on.

The industry has also implemented the program include football, hospitality, education (courses & Bimbel), and others

Who says loyalty programs always about money? This loyalty program does not provide economic benefits to its customers, but the good feelings they evoke. For each transaction with a certain value, the company will donate a sum of money for charity.

This program is functioning effectively, both to increase customer loyalty, or do branding for the company. No one, the longer, more and more companies are using the loyalty program. In the long term, this policy is a very good thing to do.

Examples of companies that implement this program are aqua. Then for each gallon aqua sold, the company set aside a certain nominal for the manufacture of water resources in remote villages. This system can be applied by other companies, of course with different objectives that are linked to the areas of the company.

The loyalty program is very powerful and effective as it can be made general or very personal. In general, for any seasonal or annual event, the company can provide benefits for customers such as discounts, free service, and others. This can be provided to customers who have been dealing for a certain period.

This loyalty program can also be applied personally. Companies can provide benefits to customers as a special time for the customer, such as their birthday. Of course, before the company must already have data on this.

This limited event program proved to be very effective in increasing customer loyalty. This is because customers feel cared for and cared about.

The loyalty program allows customers to become partners of the company. Customers who were satisfied with the products and services the company will be happy to invite other potential customers. By providing incentives and rewards that attract, engage and share the intensity can be increased.

In the long term, companies can shift the cost of marketing and promotion to this program. The effect will decrease costs, and income will increase.

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