American brands are focusing on strengthening customer relationships to sustain in a highly competitive market. For building customer loyalty and engagement, businesses are investing in rewards platforms. A rewards platform helps businesses offer personalized incentives that align well with customer preferences.
Many loyalty programs software are on the market that are empowering businesses with real-time data analytics to deliver personalization and fruitful redemptions. This post will discuss the benefits of a rewards platform in detail.
Achieve Higher Customer Retention Rate
For US businesses, customer retention is far more cost effective than customer acquisition. A rewards platform makes customer retention easier as it helps businesses appreciate their customers and reward them with points, discounts, member-only perks, and early access to new products.
Loyalty programs are a great reason for customers to stay with a brand. It’s an authentic way to recognize the customers for their business with your brand. Studies show that 56% of US customers admit that they are more inclined to the brands that offer loyalty programs. Such loyalty initiatives lead to lasting relationships, reduced churn rates, and strong customer connections.
Take Customer Experience a Notch Higher
Customers value personalization much more than transactional benefits. US customers are in for much more than transactional relationships. A robust rewards platform that is customized per individual preferences is the need of the hour for businesses. Personalized rewards, such as offering birthday gifts or customized promotions, add value beyond the products or services.
A study shows that 80% of US customers are more likely to repeat business with the brands that offer personalized experiences. A rewards program that checks all the boxes right creates positive dialogues with the customers and builds customer loyalty.
Increased Sales and Revenue
A rewards platform can enhance your sales by motivating customers to repeat purchases from your business. Customers are familiar with points-based systems and feel motivated to increase the frequency of business to get more rewards. Businesses can increase their sales by doubling the reward points during peak seasons or on bulk orders.
Customers who have enrolled in loyalty programs and feel rewarded in a true sense are likely to spend 12 to 18% more every year than those who are not participating in loyalty programs. A surge in sales leads to more revenue and more profit making.
Get your Hands on Customer Data and Insights
Customer data is the goldmine every business can access. Customers gift you with valuable data when they interact with your brand on the internet. Not utilizing this data is just like turning your back on a treasure. You can get customers’ insights with the help of loyalty program software. A loyalty programs software like Novus Loyalty efficiently tracks and analyzes customer data in real time and presents actionable insights to a business. You can use these insights on customer preferences, behaviors, and habits to craft personalized loyalty programs.
In US markets, competition is bottlenecked these days. Having access to customer data can give you a competitive edge. It can help you segment your audiences, make targeted campaigns, and anticipate customer needs more accurately.
Get More Customer Referrals
The US customers consider referrals a credible source. Influenced by peer recommendations, 83% of US customers trust brands that they get to know from people they know. A rewards platform can turn your customers into brand advocates and accelerate your referral loyalty strategy by leaps and bounds. Instant gratification is the need of the hour, and loyalty programs software can help you offer that efficiently.
By integrating referral rewards into your loyalty program, you not only retain loyal customers but also acquire new ones at a lower cost. This strategy has been proven to work effectively in the US market, where customer acquisition costs are high, and organic growth through referrals can offer significant savings.
Lowered Marketing Spend
Marketing spend allows brands to reach out to new customers. Customer acquisition can be expensive for small to mid-level businesses. The US market has been on the lookout for a cost-effective strategy, and customer retention has emerged as a suitable option. Retaining existing customers using a rewards platform is more cost effective than acquiring new customers. Customer acquisition is five times more costly than customer retention.
When you offer rewards and discounts through loyalty programs software, you give your marketing budget a breather. US customers love the fact that they got something in return for the money they spent, it nurtures their loyalty towards a brand or product.
In a Nutshell
A rewards platform is a great way to build customer loyalty. Building a robust loyalty platform can benefit your business in multiple ways. Businesses must invest in technology to implement relevant loyalty programs and track the performance of loyalty campaigns in real time. Novus Loyalty is a leading loyalty management platform with real-time data analytics and automation capabilities.
