Customer loyalty programs are designed to increase sales for businesses that implement them.
Why is it super important for a business to have an effective customer loyalty system?
The reason is pretty simple.
It is easier (and cheaper) to get people who already love your product or services to return to do repeat business with you.
Therefore, the easiest (and cheapest) way to increase sales is to market to your existing customers.
That is the very reason why you should consider starting a customer loyalty program right away. RIGHT NOW.
Consider a simple illustration to help you appreciate why having a customer loyalty system is a must-do right now.
Suppose a business owner have 1000 loyal customers who love her products.
Suppose too that each customer buy an average of twice per year from this business owner. And they spend an average of 3,000 Naira each visit.
That means, each customer spends 6,000 Naira per year buying products from this business.
In this case, the business will earn a total of 6 million Naira per year.
That is . . .
1,000 customers X 6,000 Naira per customer = 6,000,000 Naira revenue per year
Business is good. The business owner is happy.
However, the business owner now have a new goal . . . to double her sales this year.
There are two ways to double the revenue generated by this business.
1. The business owner can order our digital lead generation software to accelerate the process of getting MORE new customers for her business or
2. She can implement a digital customer loyalty program using our digital loyalty program software
We actually recommend using both systems . . . a combination of both digital lead generation and digital customer loyalty system.
Right now we're discussing the importance of customer loyalty programs. So, let's continue where we left off.
The Goal: The goal of this particular business owner is to double business revenue this year. She wants to grow her business revenue from 6 million Naira per year to 12 million Naira per year.
Remember our case study . . . the 1,000 loyal customers this business have already buy an average of twice per year from the business. And that generates 6 million Naira per year in revenue for the business.
Also remember . . . customers love the products of this company.
If the business owner can get her customers to buy an average of 4 times per year (instead of the twice they currently buy), her business revenue will jump from 6 million Naira per year to 12 million Naira per year.
Now pulse and think.
Which is easier to accomplish?
OPTION 1: Run digital lead generation campaigns to acquire 1,000 new customers who buy from this business an average of twice per year? or
OPTION 2: Run digital marketing campaigns with incentives that get existing customers returning to buy more often from this business?
Of course, option 2 is easier to accomplish. And more cost effective.
Yes, customer loyalty programs are the most cost effective way to increase sales!
Most companies that have implemented customer loyalty systems in their business have seen appreciable increase in sales.
However, most are barely scratching the surface.
What does that mean?
It simply means most businesses who implement customer loyalty programs in their businesses are not maximising the revenue potential of their programs because they are using a manual system. And manual systems are ineffective and open to abuse.
Therefore, we highly recommend using a digital customer loyalty system that is powered by a digital marketing software.
The good news is . . . we offer a Nigeria digital marketing loyalty program software that is designed to . . .
Want to increase revenue by getting your existing customers to buy MORE from your business?
Click HERE for FREE consultation with Samson Itoje, the Nigeria customer loyalty program expert.
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