Reward programs need time to deliver their full results. There are many initial benefits to starting a program, but the best value is seen in the long term.
Here are some of the reasons why we always seek long-term relationships with our new partners:
Full Integration Takes Time
It can take time to update your website and materials, but it is a crucial step. It also takes time for new and existing customers to learn about your program and how they can benefit.
To get the message out there, ensure program information is included in all sales materials and leveraged often in marketing and promotional efforts.
Standing out from the competition is one quick result from starting a reward program. However, improving your businesses’ reputation may take a little more time.
The Value of Customer Loyalty Compounds
Earning repeat business, referrals and advocacy are not instant, but they are excellent ways to grow your business.
First, you must attract new customers, make them happy, and then earn their referrals and good reviews. This takes time to achieve, but it will be worth it. Aim to measure the growth of your customer base annually. Clients need time to learn about the program, see the value and grow fond of it.
Increases in revenue are best seen year over year due to annual buying cycles and industry fluxes. It’s not accurate to compare the revenue of consecutive months in the same year. Instead, compare to the same month in the previous year.
Reward Programs Encourage Higher Frequency of Purchases
The value of returning customers is easy to see in high-frequency retailers but, slight increases in buying frequency aren’t always noticed. Use your program to reward frequent purchases, or build packages that encourage customers to come back more often.
If customers normally buy 3 times per year, set a new goal of 3.3 times per year. This is a 10% increase in purchase frequency which equates to a significant increase in annual revenue.
Reward programs also show you what your customers truly value. You can adjust reward offers based on the response and results. It is normal to need time to see these patterns. When you do, adjust your offers as needed.
Always give new reward programs proper time to gain momentum and see results. When starting out, it takes a couple of years to see the full potential.
Our team of loyalty experts have many years of experience and are ready to help you grow your business.
To learn more, check out our ebook Loyalty Programs, The New Business Imperative.
We also explain how reward programs motivate customers, in this recent post.
Take the first step, and contact us today!