As consumers, most of us like to “see” the bonus of buying things from a seller. Whether it’s a loyalty loyalty program or cashback for credit card purchases, it’s a good idea to get more for your purchase, even though we know that the amount of the “bonus” is hidden in the price we pay.
But does such a loyalty program for B2C or B2B print sales work?
Wis. Stimulation, positive reinforcement and gamification are strong psychological driving forces of human behavior.
Offering customers something valuable in exchange for their specific actions can create greater engagement, loyalty and value. This goal should be one of the pillars of your company’s marketing strategy. With these reward programs, additional revenue comes from:
- Higher frequencies
- Higher order value (volume, up-sell and cross-sell purchases)
- Increased retention / loyalty
Loyalty and reward programs can increase customer retention by 5%, which can increase revenue by 25% or more. These programs open up opportunities for cross-selling and up-selling, which not only creates higher order values, but can also generate new loyalty points for more products than for new ones. The advantage is also greater market promotion for customers. The result will also be recommendations and referrals because rewarded customers feel better and are more likely to share their experiences with a friend or colleague.
Survey data shows that 84% of buyers say they are more likely to stay with a seller who offers a loyalty program. Two-thirds say their ability to earn rewards changes their spending behavior. And 56% said they were willing to spend more on the seller, even if there were cheaper options. Customer loyalty / reward programs can also help create a brand community so that customers have a sense of belonging. As a bonus, customers may be asked to provide contact information and related information for future marketing communications.
No business owner would claim that selling to existing customers costs less than acquiring new ones. Customers now know and love what you offer, so there is plenty of incentives and recognition that they can spend a lot with you.
If you don’t have a customer loyalty program, you can start today. There are several types of programs that you can consider, from the most basic to fully integrated into your CRM or POS systems.
If your printer serves individual consumers, consider a points loyalty program where points can be exchanged for benefits, advantages, or loot. Customers earn points from their purchases, but also by sharing a social media post, leaving a review on Google, or just celebrating a birthday. There is a specific driving force behind behavior that comes from gamification, and reward points can work if there is a certain level of frequency among your buyers.
One of the benefits of score-based programs is that there is less risk and less barrier to entry. They are easy to implement, monitor and manage. They are also good at starting to collect information about your customers with consent. One disadvantage is that there is not enough to attract top customers and there is not the quick satisfaction that some consumers demand. In addition, net transactional benefits do not establish real loyalty.
A better option for your printing company would be a multi-level loyalty program, where customers get different benefits depending on the number of purchases and interactions. Customers who meet at a higher level will receive a lot of rewards. The main advantage of this method is that it rewards your customers with higher value and better experiences than traditional programs. It supports more purchases because members want to achieve exclusive status. You can adjust the levels to your liking.
Finally, premium loyalty can also be attractive, especially for B2B print customers. Thanks to this strategy, customers will receive immediate and lasting benefits at the expense of participation. Remember Amazon Prime.
Research shows that consumers are 62% more likely to spend more per brand after participating in a paid loyalty program. Sixty percent of buyers say direct discounts are an advantage that encourages them to participate in premium loyalty programs. About 51% of retailers with premium loyalty programs consider program members to be at least four times more valuable than non-members. In general, loyalty programs can have low risk and a significant increase in customer wallet acquisitions and long-term sustainability. With your own design, you can implement a B2B or B2C print purchasing program that can bring more value and profit.
