Customer Loyalty Programs And Customer Rewards Increase Long-term Profitability
Customer loyalty programs can function as the promotional linchpin that drives your company's long-term profitability
. They are an essential tool for improving customer retention. By offering your customers digital incentives, such as skins, music downloads and an assortment of mobile promotions, you can dramatically increase the lifespan of each customer. Not only does this create an enormous level of goodwill, but customer loyalty programs also encourage customers to respond to your ongoing marketing campaigns.In 2001, noted authority on customer loyalty programs, Fred Reichheld, released his book, "Loyalty Rules." Within its pages, Reichheld explained the influence customer retention rates have on the overall value of your customer base. A 5% retention rate can translate into a 75% improvement in the value of your customer inventory.
Below, we'll explain how customer loyalty programs can produce these results for your company. We'll also describe the difference between these programs and customer rewards programs - each has a vital function to fulfill. You'll also discover how to leverage music download promotions, skins promotions, and mobile promotions to increase the loyalty your customers feel toward your company.
How Customer Loyalty Programs Generate Stunning Results
Your customers want to feel valued. They want to know that your company perceives them as a critical factor in your success. Too often, companies treat their customers as disposable commodities. This has produced a legion of consumers who shop primarily based on price, all but eschewing brand loyalty. Customer loyalty programs help eliminate price as the deciding factor and instead, transform your customers into fans. By offering them digital incentives, you can cultivate their loyalty while creating a more memorable brand experience.
That sharply increases the lifetime value of your customer inventory. It not only inspires them to return, but it also encourages them to tell others about your company, generating a new wave of customers.
The Difference Between Customer Rewards And Customer Loyalty Programs
A lot of companies make the mistake of thinking customer rewards and customer loyalty programs are identical. They're not. Each has a distinct promotional role to play. Customer rewards are a powerful lever that you can use to trigger a response and gather customer data. By collecting information about your customers, you can launch a sequence of marketing initiatives that build brand awareness and gradually influence their purchasing behavior. In doing so, you'll be able to better identify which customer segments are the most profitable for your company.
Customer loyalty programs fulfill a different function. They improve your customer retention rate, which Reichheld showed to have a dramatic effect on long-term profitability. By giving your customers a variety of digital currency incentives, you'll encourage them to return to buy your products.
Music Download Promotions Can Spearhead Customer Loyalty Programs
Music download promotions and mobile promotions are cost-effective platforms from which to launch your customer loyalty programs. Because they can be delivered digitally to consumers' phones, PDAs, and other mobile devices, their effect is often instantaneous. They trigger an immediate response from your customer base.
Music transcends gender, culture, and age to reach a broad audience. Your customers, regardless of their backgrounds and musical tastes, will gravitate toward the artists they enjoy. You can provide your entire customer base with a catalog of millions of songs from which they can choose or you can target certain segments by genre.
Mobile promotions, such as instant win games and digital coupons, can also trigger an immediate response. Your customers can enjoy playing instant win games the moment they receive your promotions. Then, they can receive instant notification regarding whether they have won a prize. Mobile coupons can be redeemed just as quickly.
When leveraged to spearhead customer loyalty programs, music download promotions and mobile promotions can generate a new wave of sales while strengthening your brand loyalty.
Customer Loyalty Programs And Skins Promotions Complement Each Other
Skins promotions are a unique type of incentive because they are delivered digitally, yet physically adorn consumers' phones, PDAs, and laptops. They are a perfect complement to your customer loyalty programs for two reasons. First, the skins promote your brand not only to your customers, but to every person who observes your customers' mobile devices. Second, skins promotions serve as an ongoing reminder to your customers about why they're loyal to your company. The skins generate a lot of goodwill.
Customer loyalty programs remain one of the most potent promotional levers for increasing your company's long-term profitability. They allow you to lengthen the overall life cycle of your customer inventory. If you're not currently taking advantage of customer loyalty programs, now is the time to reconsider.
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