It’s not often you hear a business owner claim that they have as much business as they can handle. So, with that in mind – let’s talk about the bottom line. There are two ways a business can grow and prosper. First via customer acquisitions, which can be costly and very time-consuming. The other way companies can grow their bottom line is by getting additional business from existing customers. In both situations, implementing or improving your customer loyalty program should be an integral part of your marketing strategy.
In business, more than likely, your profits are based on the 80/20 rule. 80% of profits typically come from 20% of your customers, which is why it is critical to have a loyalty program that offers modularity. Think about it – your high value customers will more than likely have different preferences than your low value customers, not to mention, your most profitable customers should be rewarded differently than a customer who may only do business with you occasionally.
Companies large and small offer a myriad of loyalty reward programs but not all of them are thoughtfully designed or effective, which leads me to let you know about an article I came across recently titled, “5 Best Practices for Loyalty Programs”, This article covers 5 very important components of a successful loyalty program: Customer Insight, Modularity, Openness, Customer Management, and Simplicity. Many of the key points we’ve covered previously on the VIPdesk blog, which is why I strongly recommend this article to any business that is working on implementing, or improving, their customer loyalty program.