Over 80% of organisations believe customer retention is easier and cheaper than acquisition. Also, 75% of consumers prefer companies that provide them with rewards. The stats show how important loyalty programs in Australia are for organisations.
Do you know that when you increase your customer retention rate by just 5%, you can increase profit by 95%? Yes, that’s true.
However, many companies focus on attracting new customers. Although making efforts to win new consumers is also essential for the growth of a business, customer retention is incredibly important for so many reasons. And, one of the easiest ways to convince clients to keep on buying from a company is the use of reward programs in Australia.
These programs not only attract the existing clients but also motivate them to make frequent purchases for handsome rewards. Below are some benefits of launching loyalty programs in Australia for a business:
- Large Customer Base
When your business focuses on both winning new clients and retaining the existing ones, your efforts lead to a huge customer base. An incredible advantage of this approach is that your customer base keeps on increasing and your business touches the new heights of success.
A great customer loyalty program can be useful in attracting both new and existing customers and convincing them to invest in a company’s products or services.
- Easy Customer Retention
As per research, loyal clients of an organization tend to spend at least 67% more on average than new customers. However, retaining customers is a challenging process. You need to keep your consumers informed and motivated. In addition, there must be a lucrative reward program to make them stick to one brand.
A well-established customer loyalty program makes it easy to retain existing customers.
- Less Competition with Competitors Over Price
The most amazing thing about reward programs in Australia is that they make you stand apart from your competitors. You don’t need to compete with other service providers or lower your product/services prices to attract people to your company.
A great reward program does its magic by keeping existing customers motivated. In addition, it helps attract new customers who otherwise may consider your competitors too for their requirements.
- Increased Customer Lifetime Value
Customer Lifetime Value, popularly known as CLV or CLTV, is a profit to the connection you build and maintain with your clients. It helps you understand the importance and value of a customer today and in the future.
According to experts, great loyalty programs in Australia can be an effective approach to increase the CLV in the long term. Using the approach, you can find detailed information on each of your customers to design a custom reward program to win them.
- Strengthened Relationships with Customers
When you provide your customers with special offers and rewards, they feel valued. They realise their importance for a brand. And, this may encourage them to stay loyal to a company.
An organisation can make use of a reward program to strengthen its relationship with its existing customers. The company understands what a customer may want as a reward and provides them with exactly what excites them. It means a loyalty program can be a useful approach to winning customers for a long time.
In the End
Remember, all loyalty programs in Australia work only when they are created keeping customers in mind. Finding professionals to help you create effective, useful programs that actually work and help you in the customer retention process. Work with the service provider to create customer reward programs that attract your clients and win them. All the best!
