95% of consumers want brands to find new ways to reward them for their loyalty. Customer loyalty does not happen unless you make your loyalty program an integral part of your architecture.

Here are three great reasons why your business needs a loyalty program, and how we could help:

1. Loyalty programmes build an emotional connection

Loyalty programmes drive sales and increase customer lifetime value. A well-executed loyalty program can offer a deeper connection with your customers than just a dangling carrot.

A loyalty programme will help build emotional commitment through repeatedly conditioning your customer’s behaviour. You can structure the rewards of your loyalty program around your customer’s lifestyle for greater success. For example, take NikePlus — Nike’s mobile loyalty programme. Members use Nike’s branded app to access birthday rewards, member-exclusive products and content, offline event invitations and online workouts. Nike’s programme has been very successful, because it creates that exclusive feeling of “insider access” for all members, making hem truly feel like an essential part of the brand’s ecosystem. Based on the latest report, NikePlus members spend four times more than non-member shoppers.

The great news is that all the great features in Nike’s loyalty program can be yours too, with Kaddra Loyalty.

2. Loyal customers have a high ROI

It costs five times as much, on average, to acquire a new customer than to retain an existing one. Existing customers are 50% more likely to try a new product and spend 31% more per purchase than new customers. Although marketing efforts aimed at reaching potential customers are important, retaining customers is essential to your long-term growth. If you don’t retain customers, you will have to work harder to replace customers as they churn.

Incentivising customer loyalty via a programme can help you avoid high churn rates and hold onto your high-value customers. It’s also a cost-effective approach to driving sales.

3. Loyalty helps you reach new customers

Loyal customers are one of your most powerful marketing tools. In the digital age, positive customer word-of-mouth is essential to attracting new customers. In fact, 83% of consumers place more trust in personal recommendations than any other form of marketing. A McKinsey study showed that referrals generate two times the sales of paid advertising.

Your loyalty programme can also be a unique selling point in and of itself, especially in a competitive market. If you are unable to compete on price or other differentiating factors, you can gain a competitive advantage with your loyalty offerings.

If you have any questions about how to set up your loyalty program from scratch, we are here to help.

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