How to create a right loyalty program

How can you create the right loyalty program for your business?

Did you know that, statistically, to win a new client you need to invest with 30% more in advertising and six times more time than to keep an existing client? 

The existing clients represent the area where we can use the loyalty programs because to sell them is - in theory - easier than to attract new clients. Therefore, how can you make them to come back in your stores?

Anyone can have a loyalty card to offer points or discounts to certain products that don’t sell well or that are in a big quantity in the store. But this is only an extra path to promotion. To create a real loyalty program, you need more. You need to offer a relevant discount to your audience, to understand the customer’s behaviour, its needs and its habits, to see what is important for the client so you can make him happy. 

What are the advantages of a loyalty program?

• It raises the number of clients. The members of a loyalty program are more willing to share their shopping experience with their family, friends and co-workers. In this way, the merchants are getting free direct promotion.
• It raises the number of shopping sessions of existing clients. Only 22% of loyalty cards holders will use it regularly.
• It improves the retention rate of existing clients. From statistics you can see that only 20% of a retailer’s buyers can be loyal, but they are generating between 55% and 70% of sales.
• It raises the profit. Companies can raise the profit with approximately 50% by increasing with 5% the number of loyal clients and selling products which brings higher profit.

But how can you make a successful loyalty program?

This usually means money spent, logistics, people and strategies. These expenses represent a considerable amount of money which will be initially spent and which will put pressure on your company marketing budget.

However, there is an alternative through which you can make have these expenses monthly, receiving the expertise and the advices of experienced marketers. You can also receive a benchmark analysis for reference.

We’ll talk about the mobile app dedicated to loyalty cards, VirtualCards. Why? Because over 59% of the clients want to have the possibility to collects points from their favourite stores using a loyalty app. And over 82% of them would be easier to convince to go to a store if it gives discounts for sure through an app.

On average, a client subscribes to 7.5 loyalty programs. This means that he has at least 7 loyalty cards in his wallet. VirtualCards app is helping users to keep all their loyalty cards in their mobile phone.  Moreover, this app helps affiliate merchants to create cards instantly from App so easy, by filling some personal information.

Why should you use VirtualCards app to create your own loyalty program?

1. First, because you’ll save money from your budget. Instead of spending resources as plastic cards, filling forms, hire people to handle it, time and implementation, you’ll only pay a monthly amount of money.
2. Immediately promotion to VirtualCards database in your country to attract new users to your loyalty program through discounts and promotions. On VirtualCards platform, beside app, you can also access the web page, Facebook, Instagram, Google+, LinkedIn and VirtualCards blog.
3. Direct communication. You can be in touch with your clients through notifications, telling them about your promotions, discounts and news from your store.
4. Attract new clients through geolocalisation and raise the number of visits in sale points.
5. Real time statistics. You’ll have access immediately to relevant information about your clients: the number of clients who opened the loyalty card, number of clicks on each offer, how many have accessed your website for information, etc.
6. Feedback. You can talk with your clients directly and improve your company image through your quick answer. You can see in real time what the potential problems which might appear in your stores are and you can react as soon as possible.
7. Experience and dedication. At VirtualCards there are professionals who handle directly every client, looking after your objectives. The chosen strategy needs to match the business specificity and your promotion campaigns must reach the target!

In conclusion, a loyalty program based on loyalty cards is a marketing tactic used worldwide by most big retailers and full with benefits if it’s used correctly. 

However, using a mobile app and multichannel promotion are innovative techniques which are used by forward-thinking companies to rethink their loyalty programs. These efforts are rewarded by consumers’ loyalty who enthusiastically embraces the idea of exclusive benefits offered by dedicated mobile applications or technology innovations.

With over 5 years of applications development expertise, VirtualCards proposes innovative services to several key accounts, retailers, and loyalty program providers. The App offer an entire marketing and communication platform to its partners, with a complete set of loyalty tools: statistics and feedbacks, coupons, notifications, SMS, newsletter, s.a.  Bottom line, VirtualCards is one of the most powerful modern marketing tools. Everything can be managed autonomously for a close relationship with the clients.

Always evolving, VirtualCards announces iBeacon BLE (Bluetooth Low Energy) technology integrated at the last update. This technology brings news opportunities for contextualized offers and geofencing features (near the point of sale) with a unique precision for loyalty cards holders.

You will find us at www.virtualcardsapp.com. For more info please contact us at contact@virtualcardsapp.com, our specialists will answer all of your questions.