Insights

Customers who stay loyal towards one brand for a long period of time are those that even pass down their favourites to the next generations.

Study shows that increase in customer retention rates by 5% increases profits by 25% to 95%. Generally, customers retention generates huge profits and retaining customers costs a lot less than acquiring new ones.

Research shows that 68% of respondents said they would join a loyalty program for a brand they like. 60% of these respondents indicated that they would spend more on the product they like even if they are cheaper alternatives.

Recent study shows that 50% of respondents would spend more on the company after joining a brand’s loyalty program.

In another study, its revealed that 95% of customers say trusting a company increases their loyalty.

Loyalty programs have been proven as one of most effective tactics for increasing revenue and aspiring customer loyalty.

UserX Rewards assists businesses understands that:

  • Building relationship is good for business, creating a program that rewards customers for shopping with the company is one of many ways to create loyalty that lasts.

 

  • Taking retention one step further by establishing formal systems that celebrates and rewards customers through some combination of points, discounts or other rewards will yield higher retention of clients.

 

  • Designing a program well, will:
    • Makes customers feel appreciated
    • Build trust in your brand
    • Offers a competitive advantage

In order to create an appealing loyalty program, one has to be generous with the rewards i.e giving away discounts on products or special products.

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Customers are not only looking for coupons. Saving money is a motivating factor. Engaged fans are also motivated by exclusive benefits i.e behind the scene perks, early access to products that are on sale, and customized recommendations tailored to them.

Brand Loyalty occurs when a customer is a lifelong fan of a particular brand. Loyal customers are always an asset to a company because they are their stable base of income. Customers who stay loyal towards one brand for a long period of time are those that even pass down their favourites to the next generations. On the other hand, repeat purchase intention is when a particular product has been purchased again- but due to the action of a previous purchases. Kodippili. N Et al (2020).

Psychologist tell us that one of the most powerful human behaviour is recognition. Therefore, it is important to recognise and personalize our customers.

Customer data gives us the behaviour and insights of the consumers, we will know their demographics, their preferences, their taste, their budget and so much more.

NB: Data privacy and use will adhere to the POPI Act.

Taking cards from plastics to phone. Study shows that more respondents indicated that if their loyalty card were on their phone they would use them more. Mobile phones are preferred more than wallets.

Targeted marketing to a specific group of people based on what they often shop before the marketing to the crowd.