Many small business owners are missing out on the benefits of being able to reach out to their existing customer base by targeting them with initiatives that are guaranteed at increasing sales. That’s because they lack a solid mobile loyalty app program that can help them leverage their existing customer base.
It is no secret to any business owner that existing customers constitute the most loyal client base that businesses can hope to have. Your existing customers are already familiar with your products and services, and therefore, are much more likely to be receptive to any promotions that are targeted at them. Having a mobile loyalty app can help you target these existing customers, and increase sales in the process.
There are some very specific advantages to having a mobile loyalty app.
A loyalty app can help you increase the number of visits to your mobile website. Statistics show that as many as 35% of customers will go out of their way to a business that offers a loyalty program. A mobile app program can help bring in visitors more frequently. The success of your loyalty program is likely to be stronger, when you combine these rewards with timely user notifications that help target users through their smartphones.
Loyalty programs can also increase sales for you because they encourage spending. It isn’t rocket science that customers are more likely to buy something if they are offered gifts, offers or discounts for doing so. Loyalty programs encourage customers to spend more, which naturally leads to more spending, increasing sales for you. When customers are incentivized to spend more through rewards, gifts and free offers, they don’t think of going anywhere else.
A mobile loyalty app is generally targeted towards an existing customer base, but it can definitely help you generate new customers as well. Many customers will give up their old buying habits, and abandon their old retailers when they find some other businesses offering them much better deals through a loyalty app program. In fact, according to statistics, about 40% of consumers admit to changing their spending habits to maximize loyalty rewards. In other words, your mobile loyalty program can incentivize customers to shift their spending towards your business to take advantage of the rewards that you offer. These rewards are not just a powerful inducement for your existing customers, but also a very strong lure for new customers.
Mobile loyalty can also help bring back old customers who may have shifted away to other businesses. There is nothing to bring back an old customer like a mobile loyalty program that rewards customers with gifts, discounts and other offers, when they spend more at your business.
A mobile loyalty app often comes designed with a customer activity tracking tool that leverages the power of analytics to gain more insight into customers. The more knowledge you have about customer spending and buying practices, and the manner in which they shop for products and services, the better positioned you are to be able to meet that demand for products and services. A customer activity tracking program gives you access to information about your customers, especially about when and how they decide to make purchases, so you can design reward programs that work best for maximum results. This helps you plan your next marketing strategy more effectively.
Having a loyalty program is also an excellent way of increasing customer satisfaction, and making sure that current clients don’t drift away to your competitors. In fact in a recent study, about 60% of customers reported that they were much more likely to continue shopping with a company that has a loyalty program in place.
Many marketers find that one of the major obstacles to businesses implementing a mobile loyalty program is the belief that having all these gifts and rewards in place will erode profits, and will not make any difference to a company’s balance sheet. That is a myth, and very often, the cost of having a rewards program is much lower than many business owners seem to believe. In fact, redemption rates are far lower than the 100% that many business owners fear. According to estimates, as many as one-third of all loyalty rewards are never redeemed.
Offering your customers a mobile loyalty app is long overdue, and many businesses have already realized that a loyalty program can be a strong sales generation tool. Many customers now expect rewards and loyalty gifts when they shop at even small businesses, and base their loyalties on the kind of loyalty and reward programs these businesses offer. In a situation like this, can you really afford to miss out? Let ApporClick help you add a mobile loyalty program to your marketing strategy.