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4 Ways to Boost Your Sales by Implementing a Customer Loyalty Program



4 Ways to Boost Your Sales by Implementing a Customer Loyalty Program

In order to maintain the increase in sales and profitability, both traditional and online merchants have to come up with innovative ways to bring about an increase in their repeat shoppers. One such method to increase repeat consumer business is to implement effective and attractive loyalty programs. Loyalty programs depend on the business concept, where profitability can be increased when the loyalty customer based is well maintained. The most productive loyalty program is one that convinces customers that they will be well rewarded if they spend more on the targeted product or service.


Let us check out how these programs help in increasing repeat shoppers:

  • Gift Cards

These programs buy a certain number of items and avail a free gift, or offering a discount on the next item coupon will encourage your customers to come back to the retailer and shop more. For example, when a customer needs to purchase 5 bags of an item to avail one bag free, the business makes more money on selling the 10 bags rather than losing the money on 1 free bag. This is also true in the case of cashback and discount loyalty programs. Examples of these are the points programs and the frequent purchase programs, to name just a couple.


  • Free Shipping

The number of customers who are on the lookout for free shipping while ordering online is on a never-before high. Here offering a loyalty program where the customer is offered free shipping is an ideal and sure way of increasing repeat purchases.


  • Word of Mouth

One of the greatest and freeways of advertising is through word of mouth. A customer who has experienced a positive experience or is already participating in any kind of loyalty program is most likely to bring in a friend into the business who will be keen to be a part of the program. It doesn’t matter that you offer reward points, discounts on items or cashback, providing the customer what they value most will naturally lead to a sure increase sales through repeat purchase.


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  • Loyalty Programs

It can be seen as proof by the customers that you value and appreciate their patronage. Consumers look forward to getting rewarded and are more likely to come back and spent more. This loyalty is established, encouraging for a large and healthy loyalty customer base. The investment that an organization makes on a reward program is far less than the profits that are obtained since they are sure to get a substantial return on their investment.

More and more businesses are turning to introduce and establishing loyalty programs as their effectiveness and success have been proved beyond doubt. They have realized that it is more profitable to retain their existing customers than it is to try and find ways to attract new customers. They help to motivate customers to shop more often, thus spending more money. In these hard times, it is practical to make the best of every available marketing tool. Effectively and successfully implementing and managing a loyalty program will not only increase repeat customers but will also help to build a brand and a loyal customer base.


As a tool for increasing retail marketing, reward programs are becoming very popular among customers. Loyalty cards act as an incentive for customers to purchase and stick from a particular store. When they are offered bonus points, customers will choose that specific store over just another one, helping businesses to build a solid customer loyalty base and that will surely boost the sales.




Read more Business related articles in The Weekly Trends magazine.

I am a passionate Freelancer while studying. An avid reader of multiple websites including Medium, Thrive Global, Kivo Daily, and of course, The Weekly Trends.

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