Rewards for loyal customers can be somewhat double-edged. When marketing tries to come up with ways for building customer loyalty, they believe that offering rewards can encourage people to become repeat customers. These rewards could be things like punch cards, point systems, or something else that gives loyal customers a reason to keep coming back. The technology of rewards programs has gotten to the point where a consumer doesn't even have to think about the management of them; the rewards simply accumulate and are there when it's time to spend.
But another way to look at this is from the perspective of the brand: what are the benefits it reaps for inspiring loyal customers? And what does it take to inspire that loyalty? Rewards certainly help, but it's more important to focus on things like providing a great product or service and being known for having top-notch customer service. Marketing alone won't convince customers to remain loyal.
To build a brand with loyal customers takes time, but we can't undersell the importance of that investment. As our latest infographic shows, customer loyalty is very important. 78% of loyal customers help spread the word about your brand, and 54% won't even consider switching to a competitor. If your company can offer a unique experience with your product or service, it will only encourage more of your customers to stay loyal.
If you're looking to create a strategy for building loyal customers, learn more about Zendesk for retail.