Keeping current customers is a lot cheaper than acquiring new ones – research says 5 to 7 times cheaper. This goes to show how customer loyalty can have a major impact on your organization’s profitability. But how do you hold on to customers? The answer is with an effective loyalty programme!
What is a loyalty programme?
A loyalty programme is a structured marketing strategy that rewards a customer, so that they’ll continue to buy your brand, service, or company in the long run. The ultimate goal is to increase market share or profit. The reward can be based on contract renewal, repeat purchases, or even customer behaviour. Rewards can also be given for placing reviews or having an ambassadorial role. Loyalty programmes come in all shapes and sizes, from frequent-buyer discount programmes to exclusive events. Well-known examples of loyalty programmes in the Netherlands are Albert Heijn’s ‘bonuskaart’ (‘bonus card’), Heineken ‘biertegoed’ (‘beer credits’), ING ‘rentepunten’ (‘interest points’), and Douwe Egbert’s ‘DE-zegels’ (‘Douwe Egbert stamps’). However, these programmes don’t only work for consumers, as they can also be very effective in the B2B segment.
The benefits of a loyalty programme
But what are the benefits of a loyal programme? An effective loyalty programme keeps your customers coming back instead of shopping around at competitors. It allows you to identify both loyal customers and customers who haven’t made a purchase in a while. By rewarding loyal customers and offering special discounts to customers who haven’t made a purchase in a while, you can ensure active customer loyalty and stimulate sales. For example, customers of the Royal Dutch Touring Club (ANBW) receive more discount on certain products the longer they’ve been a member.
The advantages of a loyalty programme:
- active customer loyalty
- stimulating sales
- rewarding customers without sacrificing margin
- more insight into customer profiles
- direct communication with your target group
- better insight into buying and switching behaviour
Effective loyalty programme with Desk
This means that a loyalty programmecould be a very appealing tool for any organization focusing on customer loyalty. At Desk, we’d be happy to help you create one. We provide an effective loyalty programme that helps you hold on to customers and employees. We take care of the roll-out for you and ensure that the programme is unique and appeals to your customer or employee, ensuring a long-term bond. This is our answer to customer engagement, the emotional bond with your brand.
Desk offers both generic platform solutions and customized solutions. A digital gift code can always be the starting point of the reward. As we work together with a network of retailers and other service providers, we can always make a stand-out offer.
Want to know more? Take a look hereor contact us directly.