Loyalty Programs in Australia: Why are They Important

As per a report by Reichheld of Bain & Company, a 5% increase in customer retention can result in at least 25% profit. It happens because retained customers invest in more products/services offered by a company. However, more than 60% of businesses see retention as a big obstacle to overcome. Loyalty programs in Australia can help businesses in keeping their right customers. How?

Experts believe that acquiring new customers is at least five times more expensive than convincing the existing ones to make a purchase again. It makes sense: you don’t want to spend your resources on finding new leads and converting them into sales. One, it is an expensive process. Two, it takes a lot of time to reach potential clients and turn them into buyers. Three, you need to follow the same steps again and again, which results in slow business growth.

The bottom line is: Focus on retaining the existing customers.

Importance of Loyalty Programs

Turning buyers into loyalists is a complex process, which is why there are dedicated loyalty programs in Australia that focus on encouraging people to stick to a brand.

Loyalty programs aren’t new! They date back to around 1793, and it hasn’t changed much since then. In the past, they were known as premiums, which were promotional items around a product.  

However, the modern programs are planned to promote and reward customer loyalty of 21st-century buyers. Today, each program is customised as per a business and its clients. Also, the Earn and Burn approach is followed to give something to customers and receive the desired actions.

Benefits of Loyalty Programs

The obvious benefit is customer retention. These programs help keep existing buyers and turn them into loyalists. Some of the advantages include:
  • Increased Customer Lifetime Value
Also known as CLV, it is the profit you gain for maintaining a long-term relationship with your clients. It helps determine how valuable the relationship is, and how it can be useful for your brand in the near future. Using the process, you can find who are the people you should focus on to grow more.
  • No Need for Lowering Prices
As a brand, one of your biggest fears must be to lose customers and watch them choosing your competitors over you. To stop this from happening, you may think of lowering your product/services. But this may affect your profit.

Here, you need loyalty programs in Australia to reward your existing clients, without lowering your prices. You can provide them with additional benefits and don’t need to change your product or service price.
  • Stronger Company-Customer Relationship
These programs help you understand the importance of loyalists. You come to know that convincing your current buyers to make a purchase again is easier than looking for new clients and requesting them to invest in what you are offering them. Through these programs, you build long-term relationships with your customers and get rewarded.

Conclusion

Loyalty programs are integral to modern businesses. They help retain clients and reap their benefits for a long time. While implementing a program, make sure you’ve chosen one that has been customised to suit your business needs. All the best!

Comments

Post a Comment

Popular posts from this blog

Do Reward Programs in Australia Really Work [With Loyalty Program Guide]

Rewards and loyalty programs are promoted as cost-effective techniques to get continuous support from clients and partners. Are reward programs in Australia effective, or are they short-term fads? For years, businesses have been using loyalty programs to retain customers and strengthen links with their partners. From cashback to travel incentives and visa prepaid cards, different types of reward schemes are popular among businesses in 2021. Do They Work? In practice, rewards programs are misunderstood. Many businesses consider loyalty programs as short-term schemes or practices for special occasions. Such programs provide a small fraction of favourable results. According to experts, reward programs in Australia can be a great way to win customers or get loyal partners when they are educated about a business continuously. In addition, there should be a well-crafted and well-executed approach to get the results. How to Create Loyalty Schemes or Reward Programs The best example of long-t...
Read more

6 Costly Mistakes to Avoid for Successful Reward Programs in Australia

Image
Loyalty or reward programs are an effective way to accelerate business growth and increase profit. However, a costly mistake while creating or managing reward programs in Australia can lead to expensive, unuseful results. In this post, you will learn some mistakes that must be avoided during a reward program. Some businesses fail to understand that there is a huge difference between a loyal customer and a repeat customer. Just because a client has purchased from you or taken your services twice, doesn’t mean the customer is loyal. Some customers are loyal to the price you offer them. When you increase the price of your products/services, they tend to look for an alternative. However, a loyal customer believes in your business and comes back, despite the change in price. However, turning buyers into loyal customers is a challenging, hectic task. And, many Australian businesses try to lure people with attractive incentives in Australia . But, they forget that not all kinds of programs ar...
Read more

Exploring the Untapped Potential of Loyalty Program for B2B Sales in Australia

As per research, at least 25% of B2B businesses spend only 5% of their total budget on marketing. The study result highlights the importance of retaining clients for B2B sales in Australia. When it comes to retaining customers - whether B2C or B2B - loyalty programs are a useful weapon in an organisation’s arsenal. They make clients feel special, strengthen the relationship between buyers and sellers, and help in customer retention. From brands to hotels and retailers, businesses from different sectors of society have been using reward programs like cashback in Australia and others to grow. However, B2B loyalty programs are relatively new.     Although B2B loyalty programs are new, they hold potential to help a business grow. According to a PwC report, at least 60% of B2B consumers say they never had an experience with their service provider that may make them feel special about the partnership. They also believe that businesses should make efforts to offer special benef...
Read more