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Some business owners do not believe the ROI for a loyalty program is worthy of the resources or time spent on management. However, it costs up to seven times as much to acquire a customer as it does to retain one. Existing customers spend up to 67% more than new customers do, which makes it doubly important for business owners to use Loyalty Cards. Here, company owners can learn how they can benefit from the use of Printed plastic Cards as part of a loyalty program.
A Growing Customer Base
When companies reward customers for their business, they return the favor by spreading the word to family and friends. When people offer thanks on social media, others like, follow, share, or subscribe to the company’s pages. Social media and Loyalty Cards are great ways to build brand recognition and turn first-time customers into repeat buyers.
Management of Pricing and Inventory
A loyalty program allows companies to tailor pricing to customers’ purchase habits and internal inventory control requirements. These programs can allow the owner to determine which products are selling quickly and which should be liquidated as soon as possible. If the business isn’t inventory-based, a customer loyalty program can make it easy to determine which new services can bring increased revenue opportunities.
A Competitive Advantage
According to a recent poll among those taking part in customer reward programs, 70% of respondents said that rewards helped them decide whether to do business with a particular company. Take the coffee business as an example. Starbucks outsells its competitors because of its customer rewards program. Programs using ID Cards help to build loyalty and increase profits with minimal effort. Making the program easy to join and redeem is crucial to its long-term success.
Starting Customer Conversations
Loyalty programs allow companies to track customers’ interactions with the brand. Sending automated messages based on these interaction cycles can provide the business owner with opportunities to learn how customers feel about products and services or to offer discounts for repeat business. When customers show their loyalty cards to friends and family, they serve as ambassadors for the company's brand.
Customers tend to value partnerships that lead to benefits for them and the business. Millennials are increasingly electing to do business with companies that work with charitable organizations. By partnering with local non-profits and creating a rewards program focused on charitable actions, companies can increase customer loyalty and generate good will in the community.
Thanking the Customer
There are many ways to thank customers for their continued business, and Plastic business cards are a great option. However a business owner chooses to express his or her gratitude, they should remember how good it feels to receive thanks. There’s a proven ROI in turning customers into brand advocates, and the best way to do that is to offer top-notch customer service. When a business provides a loyalty program using Printed Plastic Cards, customers have a compelling reason to keep coming back, and the business makes more sales.