Loyalty program is the secret weapon that turns your label into a ‘Brand’. If you are here to stay as a floral business, then you cannot possibly ignore the many benefits and long-term effects of a Loyalty Program. Here in this article, we have discussed everything there is to know about Loyalty Programs.

What is a loyalty program?

A Loyalty Program is a well-crafted marketing strategy that inspires the customers to stick to the same brand for their purchases. A loyalty program rewards a customer for making repeat purchases or engaging in any other ways with the same brand.

The purpose of a Loyalty Program is to build a long-term relationship with customers, and reward their loyalty by offering various incentives or benefits.

Why is customer loyalty important?

• Firstly, statistics shows that it costs a brand 3x more to acquire a new customer than to retain an old one.
• Secondly, data also suggests that customers that are a part of a loyalty program spends 67% more than others.

The above-mentioned data should be enough to convince you about the importance of loyalty program. Moreover, there are several other benefits that we are going to discuss in a bit. But to sum it up, customer loyalty is what sustains your brand, increases your brand value, and of course, contributes towards your overall revenue.

Benefits of having a loyalty program:

A loyalty program rewards both the brand and the customers. For the brand, it means more sales, while for the customer, it involves discounts, special deals, incentives, and so on.

However, the benefits of Loyalty Programs are a lot more than what meets the eye. It helps a brand in the following ways:

1. Better customer retention

Imagine the scenario: A customer wants to purchase some Valentine’s Day flowers, and there are brands A, B, and C available with their offers. Now the customer has to choose a brand based on his requirements, and he chooses brand B. 

Next, it’s time for Mother’s Day. The customer will again check out the ongoing offers from those three brands, and again choose the most suitable one. However, he suddenly remembers that the last time when he made a purchase from brand B, he was awarded some loyalty points. Now he wants to use them for his upcoming purchase. So, even if apparently brand C is offering a better deal this time, the customer is more likely to stick to brand B.

There are several reasons behind his decision. First, he is already satisfied with brand B’s service, while he is unsure about that of brand C. Secondly, using the loyalty points and getting a discount from brand B seems to be a better deal for him, and not using the loyalty points seems to be a ‘waste’. So, even if the monetary value of the purchase from brand B might be slightly higher, he will still probably stick to it.

This is how brands retain customers by using loyalty programs.

2. Increased brand affinity

Loyalty programs increase both Brand Awareness and Brand Affinity for your business.

When customers are the part of a loyalty program, they are more conscious about the brand. This is not a one-time purchase for them that they will forget about the next day. Rather, they are going to be associated with the brand in future too. So, it makes sense for them to be aware of the brand they are a part of.

Loyalty programs create positive emotion and experience for customers. In order to be a part of a loyalty program, the customer has to like their services in the first place. Once they are impressed, they will remember the good experience and stick to the brand for similar experiences in the future, and loyalty programs will reward them for their loyalty.

For these reasons, the customer will stick to the same brand for all or most of their future purchases and show affinity towards the brand.

3. Better customer experience for repeat buyers

Loyalty programs improves customer experience too. As a repeat customer, the brand already has your data. they can use those data to offer personalized services, deals, and offers for you. moreover, being a part of the Loyalty Program, it generates a sense of exclusivity in the minds of the customer. It makes them feel special, and the exclusive benefits only increase those feelings. So, overall, customers feel great to be a part of a Loyalty Program and they want to stick to it for as long as it proves to be beneficial for them.

4. Increased sales and revenue

Loyalty programs aim to build a long-lasting relationship with customers, and acts as a channel of communication between them. Brands can use this opportunity to intimate its loyal customers about special deals and discounts, offers, updates, new product launch news, and more. Being a part of the loyalty program makes customers feel like a part of the brand. So, they will find these updates about the brand more relevant and useful. This will make them curious about trying out new offerings from the brand as there is already a ‘trust factor’ working in favor of the brand. So, customers will be less apprehensive while selecting new products and services from them.

All of this will work in your favor and increase your sales a lot, and in turn, increase your revenue.

Why do Loyalty Programs fail, and how you can prevent it

Despite the various benefits of loyalty programs, very few brands seem to get it right. 

Why? Well, there are several reasons behind that. 

Before launching a Loyalty Program, you should understand the long-term implications of it. Loyalty Programs are supposed to yield sustainable benefits, not overnight ones. So, you should invest the time and resources required for it to yield results. Apart from that, the way you build it matters a lot. Here are a few faults that brands commit with loyalty programs:

1. Complex terms and conditions

One of the main reasons why none or very few people sign up for a loyalty program is having too complex terms and conditions that the audience don’t understand clearly. If you make it too hard for them to get the reward, then they will not care enough to sign up for it, or even if they do, very few will stick around.

2. Poor selection of rewards

If the rewards that you select are unappealing, or too hard/time-consuming to get, or the money you spend for getting the rewards is too much compared to the value of the rewards, then also it will fail. Customers prefer when they can redeem their rewards quickly, and they must also feel that it is value-for-money against the money they are spending on your shop. If these conditions are not met, then they will not sign up or continue with the loyalty program.

3. Lack of awareness

Even an amazing loyalty program with outstanding benefits can fail too, if customers are unaware of it. While launching a loyalty program, it is of optimum importance that you spend a considerable amount of time and resources in promoting the offer, and make sure that most, if not all, customers are aware of it.

Conclusions

Overall, loyalty programs contribute to increasing brand affinity by providing tangible rewards, personalization, exclusivity, fostering engagement, and creating positive emotional connections. By consistently delivering value to loyal customers, brands can strengthen their relationship with customers, enhance their perception of the brand, and ultimately increase their brand affinity.