16 Reasons Why SME's Should Integrate Loyalty Rewards Programs In Their Overall Marketing Strategy

1. Increase customer retention. Customer loyalty rewards programs can help you to increase customer retention by giving customers a reason to keep coming back to your business. According to a study by Bain & Company, a 5% increase in customer retention can lead to a 25% increase in profits.

2. Boost sales. Customer loyalty rewards programs can help you to boost sales by encouraging customers to spend more money at your business. A study by Colloquy found that loyalty program members spend an average of 18% more than non-members.

3. Improve customer satisfaction. Customer loyalty rewards programs can help you to improve customer satisfaction by showing customers that you appreciate their business. According to a study by American Express, 53% of consumers said that they are more likely to do business with a company that has a loyalty program.

4. Increase customer lifetime value. Customer loyalty rewards programs can help you to increase customer lifetime value by keeping customers coming back to your business for longer periods of time. According to a study by Frederick Reichheld, Harvard Business School professor, a 5% increase in customer retention can lead to a 25% increase in customer lifetime value.

5. Build customer relationships. Customer loyalty rewards programs can help you to build customer relationships by giving you a way to communicate with customers and learn more about their needs and preferences. This information can then be used to improve your products, services, and marketing campaigns.

6. Attract new customers. Customer loyalty rewards programs can help you to attract new customers by making your business more appealing to potential customers. According to a study by Nielsen, 77% of consumers said that they are more likely to choose a business with a loyalty program over a business without one.

7. Increase brand awareness. Customer loyalty rewards programs can help you to increase brand awareness by getting your brand name in front of customers more often. The more customers see your brand name, the more likely they are to remember it and choose your business when they need to make a purchase.

8. Improve customer engagement. Customer loyalty rewards programs can help you to improve customer engagement by giving customers a reason to interact with your business on a regular basis. This could involve visiting your website, following you on social media, or signing up for your email newsletter.

9. Gain valuable customer insights. Customer loyalty rewards programs can help you to gain valuable customer insights by collecting data about customer behavior and preferences. This information can then be used to improve your products, services, and marketing campaigns.

10. Reduce customer churn. Customer loyalty rewards programs can help you to reduce customer churn by making it more difficult for customers to leave your business. Customers who are enrolled in a loyalty program are more likely to stick with your business because they have something to lose if they switch to a competitor.

11. Improve employee morale. Customer loyalty rewards programs can help to improve employee morale by giving employees a sense of purpose and accomplishment. Employees are often more motivated to work hard when they know that they are helping to build a loyal customer base.

12. Increase employee productivity. Customer loyalty rewards programs can help to increase employee productivity by reducing the amount of time that employees spend on customer support tasks. When customers are happy and satisfied, they are less likely to contact customer support for help.

13. Improve customer referrals. Customer loyalty rewards programs can help to improve customer referrals by encouraging customers to refer their friends and family to your business. When customers feel appreciated by a business, they are more likely to tell their friends and family about it.

14. Increase social media engagement. Customer loyalty rewards programs can help to increase social media engagement by encouraging customers to share their experiences with your business on social media. This can help to attract new customers and grow your brand awareness.

15. Improve website traffic. Customer loyalty rewards programs can help to improve website traffic by giving customers a reason to visit your website regularly. For example, you could offer exclusive discounts or promotions to loyalty program members.

16. Boost online sales. Customer loyalty rewards programs can help to boost online sales by encouraging customers to shop online. For example, you could offer free shipping or extra rewards points for online purchases.