Some of you may be thinking, why on earth do these companies just give away all this free stuff? Well the answer is simple. Companies that offer loyalty programs may in fact be benefiting more than you are.Companies that offer you these rewards are benefiting in the following way;
1. Better Customer Involvement
Loyalty programs make customers feel more involved with the brand, and almost act as a game for the customer, challenging them to reach the next level- which means more purchasing!
2. Trend Management
Helps you manage who is buying what, when they are buying it, and where they are buying it.
3. Increased Profitability
Because these customers feel rewarded when they make purchases, they are more likely to buy more products because it gives them a sense of accomplishment.
Sourced From: http://www.business.com/sales-and-marketing/customer-loyalty-programs/
Great Blog! Customer Loyalty Programs have always been a really effective way to obtain a good relationship with your customers. Looking at the 80% to 20% rule basically says that 80% of your brands sales comes from 20% of your customer. Having that said this is the reason that these programs are so key to a businesses success.
ReplyDeleteI really like this blog. C.L.P is a very good way to building relationships with customers and attracting new customers as well. If a company is giving you something in return when you purchase something from them like award points, vacations, free products, and etc that can build the company's status in the market.
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