4 Reasons Why Your Business Should Have a Loyalty Programme - Jiran

4 Reasons Why Your Business Should Have a Loyalty Programme

Explore the benefits of digital loyalty programmes like Chop Chop. Plus, don’t miss out on some useful tips!

Published on 2 July 2021

E-commerce opens up plenty of new avenues to help strengthen relationships with customers, from producing tutorial videos to offering free shipping. Check out our full guide on how to grow your business online based on insights from Yellow Pages.

Growing your business is one thing, but retaining customer loyalty is another. In the competitive e-market we trade in, loyalty and trust can be considered as scarce and valuable, especially for up-and-coming brands. With this in mind, we’d like to introduce you to your new best friend: loyalty programmes.

These programmes are designed to encourage trust and loyalty towards one’s brand. Commonly used by restaurants, cafés and even hawker stalls, loyalty programmes provide customers with physical cards to be stamped for every round of purchase.

But as the e-commerce scene rose in recent years, this physical initiative has been digitised in many forms. One great example is Chop Chop from Nexlife, a digital stamp loyalty programme used by Gloria Jean’s Coffees.

Did you know that loyalty programme members tend to spend 30%–100% more than non-members and are more active in purchasing? If you’re new to this concept or even a sceptic, here are 4 great reasons why your business need to have a loyalty programme:

1. It’s all about the data    

As a huge majority of modern consumers love personalised experiences, data plays a pivotal role in catering to their wants, needs and behaviour. Implementing the right loyalty programmes, especially digital-based ones, allows you to gather the right set of data about your customers, such as their spending trends and preferences. If data such as customer profiles are utilised well, the insights will eventually help you serve them better in the near future.

Bear in mind that each customer is unique, so identifying their traits and catering to them are crucial. Data gathered from a loyalty programme can help you understand your customers better. What are the must-buys for each customer? Which type of product appeals to them more? The information will help you improve your product curation as well as amp up your sales performance, because the data-driven insights will enable you to develop powerful marketing campaign strategies that lead to more sales.

2. Secure new customers and strengthen relationships with existing ones

Loyalty programmes are proven to help create strong relationships between your customers and your brand. By offering rewards and prizes per purchase, this concept allows customers to be committed to you and your business.

Acquiring new customers is always exciting. However, retaining your current clientele is just as imperative. Loyal and happy consumers would spend a lot more money on your products than new ones simply because they’ve tried and tested your products — and they’re back for more. According to a study, repeat customers spend 67% more than newer customers or potential ones, who may not have any experience dealing with you as a seller.

Now, thanks to social and digital media, happy and satisfied customers have even more platforms to spread the word and influence others in their circle. Every like, share or comment carries the potential to attract new customers to your brand. But where word of mouth really stands out is its high level of trust which is built from your relationship with loyal customers. A great way to start is by exploring and investing in loyalty programmes catered to your specific consumer profiles.

3. Make customers feel valued

Look at it this way: if you’re rewarded with a free sporty water bottle just for going to the gym often, of course you will feel valued, right? Thus, a personalised loyalty programme will make your customers feel as though they have an emotional bond with your brand.

69% of consumers say the choice of retailer is heavily influenced by the existence of loyalty programmes that benefit them in various ways. They would also feel that a customer loyalty programme would give them more value for their money. In a way, these initiatives will almost ensure a healthy commitment between you and your customers particularly in the event of a crisis. You’ll be able to make customers stay and increase their desire to purchase more, hence increase sales. See more on this below.

Pro tip: Make them feel even more valued by adding lifestyle prizes that everyone would like to have, such as a new phone or exclusive merchandise. Preparing special prizes or incentives that are relevant will only show how much your customers mean to you.

4. Linked to the increase of sales

By personalising the consumer buying experience with data, you can make better recommendations to your customers, increasing the probability that they will buy a recommended product. 83% of customers said loyalty programmes make them more likely to continue doing business with the companies of their choice — and we can’t blame them!

Having a loyalty programme will help you understand your customers’ favourite products, the hits and the misses. Using this data, businesses are able to re-evaluate their product concept to align with the demand of the customers. This is a great advantage to have against your competition who may not own the trust of potential customers in the market.

Eager to start your digital loyalty programme today? Discover more about Chop Chop and how it can help your business here.

Check out our handy infographic for an easy-to-understand overview:

Loyalty Programme 250621 01 HighRes copy 1
Loyalty Programme 250621 01 HighRes 1

Sources:

[1] https://www.claruscommerce.com/blog/9-statistics-that-prove-the-power-of-premium-loyalty-infographic/
[2] https://www.incentivesolutions.com/improve-brand-loyalty-creating-customer-loyalty/
[3] https://www.invespcro.com/blog/customer-loyalty-programs/
[4] https://www.signalmind.com/infographics/loyalty-programs
[5] https://www.incentivesolutions.com/improve-brand-loyalty-creating-customer-loyalty/