Loyalty programs can help organizations retain their most valuable customers with special offers. They can also gather useful marketing data, increase referrals and more.
Customers aren’t the only ones who love loyalty programs — marketers love them, too.
Loyalty programs drive customer retention, which can help organizations generate revenue, increase referrals and achieve overall growth. Organizations typically generate most of their revenue from existing customers, which requires less overhead than new customers. While organizations should still invest in customer acquisition, repeat business is ideal.
In addition to improved customer retention, loyalty programs collect valuable customer data and firsthand feedback. Marketing teams can use this data to derive customer insight and optimize CX. Additionally, loyalty programs have advanced even further with AI. The amount of data that loyalty programs collect can benefit organizations that use AI and increase revenue, automate outreach and create a hyperpersonalized CX.
Given the many benefits of loyalty programs, CX leaders who haven’t already done so should consider one for their organization.
What is a loyalty program?
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