October 1, 2020

1. Loyal clients

Simply, your clients buy more often. Let's say you have a bakery. There are many bakeries in your town, but your place is different - your clients get not only a bread they want for breakfast. They get also rewards or discounts: for example after they bought 10 times they can get one bread for free. This additional bonus makes a big difference. At the moment of deciding where to buy a bread, where would you go? Of course the choice is simple: at the place that offers something additional!

2. Upsale

Upselling is a sales technique where a seller invites the customer to purchase more items, upgrades, or other add-ons to generate more revenue. It's easy with a loyalty program. In order to get more points, your clients may want to buy more, just to get a reward faster. Let's say your client buys one product and in total he acumulates 9 points. But in order to get a reward he needs 10 points, he needs 1 point more to get a coffee for free, so he buys something more just to get a reward. Easy!

3. Revenue increase

Overall your revenue increases. Your clients buy more often and they buy more. Additionally you can achive a certain buzz about your company - your clients may recommend your business, what means more new clients.

4. Get to know your clients better

Loyalty programs give you more information about your clients. You get their e-mails and phone numbers, which make it easy to inform them about new promotions. You also get more information about their preferences.

5. Whisper/Buzz marketing

If you offer good rewards your clients will advertise your business by themselves, by talking about it to their friends and family members. Offering a good reward for frequent buyers, even if it decrease siginificantly your markup, is a perfect technique. For a limited time you decrease your markup, but on the other hand you get a very cheap advertisement. You can limit your rewards to be available only for a certain period of time, so that it doesn't harm your revenue.