The philosophy behind a customer loyalty programme is simple: Repeat customers are rewarded and businesses increase sales. It’s a basic but powerful strategy that Prosper ² are using to transform the business potential of our SME clients.
An ideal customer loyalty programme intends to connect with the customer at an emotive level, building a relationship and promoting advocacy. A customer loyalty programme is crucial for businesses, and especially SMEs, to differentiate themselves in a crowded marketplace. If you can build a relationship with your customers, through offering an incentive your competitors do not, you will improve behavioural loyalty and thus, increase bottom-line profits.
So, why is customer loyalty important?
Meet your loyal customers.
They account for about 20% of your customers, but, generate around 70% of your sales. Let’s put that into perspective…