The Benefits of Customer Loyalty Programs

Customer relationship management plays a vital role in the success of a retail organization. It allows companies to work more effectively by responding to customer's demands. One way, companies respond to customers and be more effective is by creating customer loyalty programs. It allows customers to be more involved and have a say in terms of products, services and the quality of the shopping experience.

Customers' Benefits

- Save money by using points earned and deals offered on certain products

- Get updated on what's happening in the store such as weekly promotional offers

- Receive discounts on other services such as flight travel

- Are more knowledgeable, and remain informed about the status of the card, and how many points have been earned

- Online access to customer loyalty programs provide more convenience

- Improved quality of the shopping experience

Company's Benefits

- A method to gain competitive advantage in the retail industry by encouraging existing customers to purchase more items as well attracting potential customers to shop at a particular store, thus increasing company's profits.

- Observe and learn about the different types of customers in the market

- To gain a better perspective of the customers' purchase behavior in terms of what items are bought; quantity of items purchased and the frequency of shopping

- A method used to maintain good relationship with customers

- Retail companies would then have a better idea on what items or services to promote, therefore loyalty programs play a key role in marketing

So these are some positive factors you may want to consider when joining a loyalty program or to incorporate it in your business. Please send me your feedback in the comment box below. Thanks