7 Reasons Why You Should Build a Custom Reward Program

According to science, your best customer is the one you already have.

Various studies suggest that acquiring a new customer can cost 25% more than retaining an existing one. In fact, if you can increase your customer retention rate by a mere 5% you could see a boost in profits up to 95%. Now that’s a pretty big deal.

In today’s world where marketplaces are increasingly saturated keeping customers engaged might seem daunting. But we’re here to tell you, it’s easier than you think.

With the help of a custom reward program, you can be on your way to those profit boosts in no time at all. Read on and we’ll tell you the top seven reasons why your business needs a customer reward program and how to get one.

1. Boost Growth

One of the cool things about custom reward programs is the custom part. You have the opportunity to create something that will work best for your business. Studies show that 58% of companies are using personalized strategies for customer retention.

They also show that these programs help to grow their client base. In fact, 84% of consumers say they would be more likely to stick with a brand that has a customer reward program. And that the type of rewards offered actually influence their purchasing patterns.

Today you don’t even need to do a whole lot of work to build one. With a few keystrokes, you can purchase loyalty reward program software that will do the heavy lifting for you. Making the whole process seamless and automated.

Multiple wins sure do rock.

2. Increase Your Sales

Your business’s bottom line is the bottom line. And with an effective, custom reward program you can sit back while your sales blossom. We’re talking locking in recurring revenues.

Incentives that feel personalized or are seen as valuable will keep your customers coming back. And studies show that repeat customers will spend 67% more than new customers. Another reason why retention is so important.

Not only will your loyal customers spend more, but they will also shop more frequently to accrue rewards. And if your existing customers really like your rewards program, they are 70% more likely to refer your brand to others.

3. Retain Customers

This one is the cornerstone for all the others.

If you reward your customers for shopping with you, they’ll feel valued. And customers that feel valued will stick with you. This is the primary reason to invest in loyalty reward program software.

The Pareto Principle tells us that 80% of your profits will come from 20% of your customer base. By rewarding them customers not only feel valued but as though they are getting value. Over half of consumers engage with loyalty programs because they feel they are getting something extra when they shop.

In a time of turmoil and financial insecurity for many, a good loyalty program can really give you an edge.

4. Attract New Customers

While retaining customers is the long-term goal, gaining new ones is also important. In many instances, your current customers will help you recruit new ones.

If they like your customer rewards program they will share about it with friends or through social media. This is free advertising for you! Studies show that people are 84% more likely to trust recommendations from their networks.

You can really build on this by offering referral perks to existing customers. For example, StitchFix, an online shopping service, gives customers an invite code to share with friends and family. This incentive gives each person a $25 credit toward their next purchase.

5. Build Strong Relationships

Relationships are the foundation of human society. They make us feel connected, part of something bigger. This is also true for our relationships with brands/businesses.

The pandemic has changed the way people are shopping and interacting with brands. By building an online customer rewards program you can still develop relationships with your customer base.

Custom reward programs can help you gather valuable data about your customer’s shopping habits, product preferences, and more. Data is like gold in the digital age, and 87% of Americans are willing to have details of their activity tracked in exchange for personalized interactions or brand experiences. Your customers will give you the world for a little personalized retail therapy.

6. Lower Marketing Costs

You may be seeing a pattern here. Each of these points is connected to all the others, they build on one another. By recruiting your existing customers to advocate for you, because you have an incredible customer loyalty program, you can greatly reduce your marketing budget.

When you really connect with your customer base, they will recruit their friends and family. Not only that, but they will write reviews. Giving you authentic, user-generated content, that consumers find most credible.

Yes, investing in loyalty reward program software is an investment upfront. But keep in mind that it costs up to 25% more to recruit new customers than it does to retain existing ones.

7. Create Brand Advocates

People are hungry for connection these days, and the more authentic your brand can be the better off you will be. 77% of consumers say they have stayed loyal to brands to certain brands for ten years or more.

As your customers grow to love your brand, they will go out of their way to buy from you. Customers like this provide your business with so much. And the data you collect from your loyalty reward program software can help you give back to them.

This symbiotic relationship can help you organically grow your customer base. Simultaneously providing valuable insight into the most effective customer reward program for you.

A Custom Reward Program Is a Win

As you can see, investing in a custom reward program just makes sense. No matter what your business, a solid customer reward program can generate massive returns across the board.

If you’re ready to hop on the loyalty-train contact our team today. We are ready and waiting to help you craft the perfect custom reward program. Our bottom line is to put more money in your pocket.