Technology Advice conducted a study in 2014 where they surveyed 387 people and discovered that 80% were more likely to take their business to companies with loyalty programs and incentives. If that isn’t evidence enough, keep reading to learn why incentives are important to retain customers.
Increases Customer Communication
As years change, demographics change, and millennials are slowly becoming the dominant economic force. This new generation expects companies to be different from previous generations; they’re loyal to brands that they think care about them as much as you do their service. They want open companies with clear lines of commutation between the business and the consumer. Coupon messages or emails can be critical in establishing communication with the client. By sending incentives, you are also engaging with them, building a bridge of trust. This trust will translate into more loyal customers and increased revenue.
Sets You Apart From Competitors
Between local shops, big-box retailers, online orders, and delivery, the market is more crowded than ever in every sector. With competition high, you must find ways to set your business apart from your competitors. Sometimes the most significant deciding factor in earning a client’s business is simply by having lower prices. Offering reward-based incentives or coupons to your customers will give them an added reason to favor your business over similar establishments.
Boost Customer Satisfaction
The Pareto principle, also known as the 80:20 rule, is a marketing theory that 80 percent of your sales are represented by 20 percent of your clients. So, it would be best if you kept that small percentage of loyal customers happy to retain their repeat business. It could be the difference between being profitable or not.
By establishing incentives that reward repeat clients, your most faithful customers can feel confident that you recognize their loyalty. Along with excellent customer service and products, incentives can go a long way to boosting consumer satisfaction.
Now that you understand why incentives are important to retain customers, if you’re interested in customer rewards program software for your business, contact TruCentive today!