Based on a survey, 82.4% of the customers are more likely to buy in a store that offers a loyalty program. Around 57% of the respondents say that saving money is the primary reason why they join a loyalty program. This strategy makes the business grow exponentially.
In fact, the largest e-commerce marketplace in the world Amazon relies on the effectivity of their loyalty program. Amazon prime, their loyalty program, has more than 20 million members worldwide.
“We want Prime to be such a good value, you’d be irresponsible not to be a member.” – Jeff Bezos, CEO of Amazon
This was the exact same words that Jeff Bezos told his employees when they launched Amazon Prime. Top retail giant Amazon focused on their loyalty program which enabled them to reach $100 billion annual revenue and be the fastest growing company in the world.Bezos emphasized that their company must focus on making their customers happy and satisfied and Incentivizing their loyalty could make that happen.Image courtesy of Amazon.comFor Andrew Sobel, the author of the book “Making Rain: The Secrets of Building Lifelong Client Loyalty”, companies can get around 80% of their revenue from repeat customers. This kind of customers usually share their loyalty to the brand to their friends and family and would be part of your free marketing. However, loyal and paying patrons are quite hard to achieve without having a specific strategy.Sadly, for some companies, they are not leveraging the power of repeat customers. Most businesses actually exert their effort and budget into looking for new customers when in fact investing in repeat customers incurs less cost.Filipino companies such as Mercury Drug, National Bookstore, and SM Supermalls shows that it pays to have a good loyalty program.
MERCURY DRUG’S “SUKI” CARD
Photo credit: Mercury DrugsYou usually get to hear the word “Suki” in the Filipino market. It is a Filipino word which means loyal customers. It is usually used as a term of endearment between the seller and the buyer. Being a proudly Filipino brand, Mercury drug take hold of this idea and made their clients feel that they are their “Suki”.Since the launch of Mercury Drug’s loyalty program, their sales grew by leaps and bounds.
SM SUPERMALL’S “ADVANTAGE” CARD
With over 50 malls worldwide, SM Supermalls continues to be the top retail stores in the Philippines. Since the launch of SM advantage card in 2002, The loyalty reward programs continue to be the premier program in the countryIn fact, they have more than nine million members. Or Around 1 out of 10 Filipinos have SM Advantage Card. Could you believe that?Alluring their customers with discounts and perks, Filipinos are most likely to SM than their competitors because of the advantage that they get.
NATIONAL BOOKSTORE’S “LAKING NATIONAL” CARD
As a premier bookstore in the Philippines, one of their key brand strategies is to make their customers stay. “Laking national” is such a strong branding that it makes you remember that you started buying school supplies from their store.They leverage the fact that they are the only player in the market in the 1960s who are selling books and school supplies. These three companies mentioned above are successful cases of loyalty programs. The question now is, why can’t others follow the same?
HERE ARE THE TOP FACTORS THAT HINDERS COMPANIES TO LAUNCH SUCCESSFUL LOYALTY PROGRAM
Lack of System that can make it happen
The high cost of launching a loyalty program
Lack of market study if the program would work
GURU TIP:
Good loyalty program is something that every business must implement. If you want your loyal customers to stay, you have to let them know that they matter to you. And you could convey that through launching a loyalty program now.A few years from now, all our transactions will be cardless. Be ahead of the competition and be one of the few companies who offer a digital loyalty program. We definitely could help you pull it off.
Launch your loyalty program for as low as P49 per day. Fill in the form below to know more details:
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Why do people buy? 15 Factors that affect a buyer’s purchase decision
Ever wondered what’s running through the minds of your buyers when they make purchase decisions? Here is the result of a survey done by bigcommerce about the top 15 factors that affect a buyer’s purchase decision.
15. Advertisement (21%)
Advertising is very important for any business. Whatever consumers see in your advertisements would reflect your brand and would eventually reflect your sales.
Advertising is done in various channels such as newspapers, television, radio, social media and the likes.
14. Social Media Recommendations (23%)
People nowadays go to Social Media for recommendations. Having a good Social media presence on platforms such as Facebook, Instagram, Twitter, Google+ and Youtube could really be advantageous to your brand.
Consumers usually decide on what social media influencers talk about. Sometimes, shoppers would even buy something they do not need.
13. Top search engine results (39%)
Usually, consumers get to buy a specific product that is on the top of their search. Google becomes everyone’s best friend whenever they look for something to buy.
12. Influence of Friends and Family (42%)
Influence of the people closest to the consumer plays a big factor in their purchase decision. Sometimes, even without asking for it, consumers share to their friends and family certain products that they use.
11. Loyalty-rewards program (45%)
Good loyalty rewards program encourages your consumers to buy again. Aside from boosting your sales, this strategy proves to be cost-efficient, growth-oriented and ultimately makes your customers happy.
Business becomes profitable if you have repeat customers and working a loyalty program is a good first step to achieve it.
Omnirio could provide you a system that would enable your company to launch your loyalty program seamlessly, click here for more details.
10. Mobile-friendly webpage (46%)
85% of Amazon’s purchase came from people who buy through their mobile phones. Google prioritizes website that is mobile-friendly. To add to that, Google says that 61% of users are unlikely to return to a mobile site that is hard to access.
9. Tailored Selection of Products (53%)
Consumers nowadays want to have their products customized. As much as possible, they would like their names to be on the products that they are availing. This kind of products doesn’t just only provide customers more options but you are also getting their loyalty to your brand.
8. Simple Site Navigation (64%)
Since the majority of consumers want to have a faster transaction in buying, they want a website that is easier to understand and navigate. You have to take note that not all consumers have the same level of education and knowledge thus you have to make an effort to make your website as simple as possible.
7. Brand reputation (67%)
Your brand reputation is your most important intangible asset. You have to build a brand that your customers would positively think about. Branding isn’t an overnight thing, however, single steps in building your brand would mean a lot.
You have to be remembered for something that you do that impacts other people in a positive way.
6. Flexible or Free returns (68%)
A lot of customers have bad experiences in availing products, especially online. Because of these kinds of experiences, they want to make sure that they are protected once the product did not meet the expectations they had when they bought the product.
Returning the products alone could be stressful already, not having a good return policy could make it worse.
5. Trustworthy reviews (68%)
Based on a survey, almost 9 out of 10 consumers looked at the product review online before making a purchase. Because of the availability of reviews online, consumers get to know the quality of products before purchasing it. This is a big factor
4. Variety of stocks in option (71%)
Amazon’s success could be attributed to a variety of options they provide to their customers. This option arises from customers difference in preference particularly in Color, Size, Design and raw materials used. Not having a stock demanded by customers could result in them looking for an alternative to your brand.
3. Discount Offers (71%)
Offering discounts to new and old customers would give your brand a major boost. A discount offer would usually drive traffic to your sales channel both online and offline. These kind of offers are something that consumers wouldn’t miss especially when it has a deadline set for it.
2. Shipping cost and speed (80%)
This is quite surprising since there are a lot of factors perceived to be more important than shipping cost and speed. Unfortunately, many business owners overlook the advantages of having a better shipment strategy.
Consumers nowadays tend to be less patient. Perhaps it could also be attributed to the improvement of technology overall, Amazon even has a same-day delivery option. The company had set a new standard that companies and consumers follow.
“In our retail business, we know that customers want low prices and I know that’s going to be true 10 years from now. They want fast delivery, they want vast selection” – Jeff Bezos
1. Price (87%)
Pricing continues to be the top factor in why people buy a certain product. People can’t buy something they can’t afford thus pricing is the topmost factor that brands must consider.
Consumers would base their purchase on the perceived worth your products are giving them. You might have the best advertisement, fastest shipping, and most trustworthy reviews. But if they can’t afford it, they won’t avail it.
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This was the exact same words that Jeff Bezos told his employees when they launched Amazon Prime. Top retail giant Amazon focused on their loyalty program which enabled them to reach $100 billion annual revenue and be the fastest growing company in the world.
Bezos emphasized that their company must focus on making their customers happy and satisfied and Incentivizing their loyalty could make that happen.
With over 50 malls worldwide, SM Supermalls continues to be the top retail stores in the Philippines.
Since the launch of SM advantage card in 2002, The loyalty reward programs continue to be the premier program in the country
In fact, they have more than nine million members.
Or Around 1 out of 10 Filipinos have SM Advantage Card. Could you believe that?
Alluring their customers with discounts and perks, Filipinos are most likely to SM than their competitors because of the advantage that they get.
As a premier bookstore in the Philippines, one of their key brand strategies is to make their customers stay. “Laking national” is such a strong branding that it makes you remember that you started buying school supplies from their store.
They leverage the fact that they are the only player in the market in the 1960s who are selling books and school supplies.
These three companies mentioned above are successful cases of loyalty programs. The question now is, why can’t others follow the same?
Good loyalty program is something that every business must implement. If you want your loyal customers to stay, you have to let them know that they matter to you. And you could convey that through launching a loyalty program now.
A few years from now, all our transactions will be cardless. Be ahead of the competition and be one of the few companies who offer a digital loyalty program. We definitely could help you pull it off.
