As is widely known, acquiring a new customer is usually several times more expensive than retaining an existing one. That is why it has become so important for entrepreneurs to take care of building long-term, positive relationships with their customers. One of the most effective ways to increase brand loyalty today is a loyalty program. With its help, motivating customers to make more purchases becomes much easier.

Customer value over time

In order to assess the real value of a customer to a company, one must answer the question – what will be the amount of future revenue generated by the relationship with the customer? In this way, the so-called Customer Lifetime Value (CLV) is calculated, i.e. the value of a given customer over time. For example, if during a month he makes purchases for the amount of 300 EUR, while generating a profit for the entrepreneur in the amount of 80 EUR, then during a year this customer will generate 960 EUR of profit. This type of calculation is very useful for business owners and is the basis for customer segmentation, the purpose of which is to focus on those who generate the most profit.

Take care of the relationship through a loyalty program

An effective tool for assessing customer behavior can be a precisely designed loyalty program. The advantage of this type of solution is not only the ability to segment the audience, but most importantly to establish regular interactions with them by, among other things, granting discounts and rewards to those customers who buy from a given company most often and the most. This is an excellent way to motivate the target group. It works well not only in large corporations, but also in micro and small businesses, regardless of the industry in which the business is conducted. A tailored loyalty system will bring tangible financial benefits in a hair salon, as well as in a small coffee shop, a car wash and a family florist.

Loyalty without obligation

Micro and small businesses still relatively rarely decide to launch a loyalty program. This is largely the result of a misconception that such solutions are unaffordable and difficult to operate. Nothing could be further from the truth! The development of information technology and the increased availability of industry-specific mobile applications has meant that even the smallest companies can now afford to implement a program to motivate their customers. Such an opportunity is provided, for example, by Rewardo, a mobile loyalty system that combines the advantages of paper stamp-collecting cards and online loyalty programs used by large corporations. In addition to giving customers rewards in exchange for repeat purchases at the same location, the solution enables multi-channel interaction with the audience and supports brand positioning on the Internet. Rewardo consists of a business user panel, which is used to create and measure the effectiveness of promotional campaigns, and a free app for individual customers, available for download on Google Play and the App Store. The system is extremely easy to use and affordable – the basic license costs just a few dozen zlotys per month. Importantly, each entrepreneur can try the solution free of charge for a few weeks, with no obligations.

Rewardo – Business Dashboard

Quality, charm and technology

There is no doubt that behind every successful business there are loyal customers who return again and again to shop at the same place, enticed by the quality of the products and services, the charm of the salesperson or the rewards due in exchange for collecting a certain number of virtual stamps in a mobile loyalty program. Any of these ways is good if it allows you to increase the profit of your business. Quality offerings and courteous service combined with the use of modern IT tools are the key to success today. Importantly, it is also available to the smallest companies operating seasonally, from smaller towns and with limited marketing budgets.

Want to know more? Learn how to build consumer loyalty by clicking here.