Loyalty Programs in Australia Why are They Important

1. Loyalty Programs in Australia: Why are They Important As per a report by Reichheld of Bain & Company, a 5% increase in customer retention can result in at least 25% profit. It happens because retained customers invest in more products/services offered by a company. However, more than 60% of businesses see retention as a big obstacle to overcome. Loyalty programs in Australia can help businesses in keeping their right customers. How? Experts believe that acquiring new customers is at least five times more expensive than convincing the existing ones to make a purchase again. It makes sense: you don’t want to spend your resources on finding new leads and converting them into sales. One, it is an expensive process. Two, it takes a lot of time to reach potential clients and turn them into buyers. Three, you need to follow the same steps again and again, which results in slow business growth. The bottom line is: Focus on retaining the existing customers. Importance of Loyalty Programs

2. Turning buyers into loyalists is a complex process, which is why there are dedicated loyalty programs in Australia that focus on encouraging people to stick to a brand. Loyalty programs aren’t new! They date back to around 1793, and it hasn’t changed much since then. In the past, they were known as premiums, which were promotional items around a product. However, the modern programs are planned to promote and reward customer loyalty of 21st-century buyers. Today, each program is customised as per a business and its clients. Also, the Earn and Burn approach is followed to give something to customers and receive the desired actions. Benefits of Loyalty Programs The obvious benefit is customer retention. These programs help keep existing buyers and turn them into loyalists. Some of the advantages include: •Increased Customer Lifetime Value Also known as CLV, it is the profit you gain for maintaining a long-term relationship with your clients. It helps determine how valuable the relationship is, and how it can be useful for your brand in the near future. Using the process, you can find who are the people you should focus on to grow more. •No Need for Lowering Prices As a brand, one of your biggest fears must be to lose customers and watch them choosing your competitors over you. To stop this from happening, you may think of lowering your product/services. But this may affect your profit.

3. Here, you need loyalty programs in Australia to reward your existing clients, without lowering your prices. You can provide them with additional benefits and don’t need to change your product or service price. •Stronger Company-Customer Relationship These programs help you understand the importance of loyalists. You come to know that convincing your current buyers to make a purchase again is easier than looking for new clients and requesting them to invest in what you are offering them. Through these programs, you build long-term relationships with your customers and get rewarded. Conclusion Loyalty programs are integral to modern businesses. They help retain clients and reap their benefits for a long time. While implementing a program, make sure you’ve chosen one that has been customised to suit your business needs. All the best! Contact us: Melbourne Australia Level 7 606 St Kilda Road Melbourne VIC Australia 3004 +61 3 8620 7820 Website: https://212f.com