The Amazing Impact Loyalty Programs Can Have on your Business

Elizabeth Presher

According to David Sambor, a leading expert in loyalty programs, acquiring new customers is 7x more expensive than retaining an existing one and compared to new customers, existing customers are 50% more likely to try a new product and spend 31% more on average. Retention has 2-3 times more impact on your growth than acquisition does and a 5% increase in customer retention can increase profitability by 75%!!! All this to say, we need to treat our current customers really well and provide both an amazing experience- reward them for their loyalty, and encourage them to share their love for us with others. I know often when looking for a loyalty program, we google, search Shopify apps, or ask in the boutique owner groups-pick one (because we feel like we have to) and then set it up and let it ride. But in light of the numbers I just read, it shows that our loyalty program needs to be a much bigger priority- a much larger part of our identity than ever before! Paper loyalty programs are cumbersome and can easily get lost! I was speaking to a potential client last week and she said she stores all customers’ loyalty cards in a binder and punches them each time they come in; although that solution had some benefits, she said she hated it and was looking into adding a different program that didn’t rely on her to keep track of everything! What is the solution? We have introduced a new product that combines messenger marketing (our LOVE!) with a Starbucks like loyalty card that is branded with your company logo and stored in your mobile wallet- it offers a loyalty program that until now has been reserved for Fortune 500 companies! Keeping the cards seemed to be a good solution- the huge piece that was missing was that when we store the cards, it's out of site and out of mind! But when a loyalty card is on someone's phone- it's a constant reminder to come to your store and shop and it is a constant reminder of a rewards program you created just for them to show your appreciation for their loyalty!! The beauty of our program is that we are able to combine the power of Messenger Marketing and Mobile Wallet to impact your relationships and ultimately your revenue!

About the Author

Beth Presher is the founder of Grit and Grace Digital Marketing, a conversational marketing agency designed to encourage and empower small business owners to provide their families' with the income they need and the time they deserve. We help businesses grow by creating engaging conversational email and messenger marketing series that grow relationships and revenue.