Today, companies around the world are using loyalty programs as an effective measure to win customer loyalty. The organizations have realized the importance of retaining the existing customers and, therefore, are using the customer loyalty or privilege membership program more than ever before. The program is especially popular among the Airlines companies who offer benefits like free miles, the check-in, priority baggage tagging, waiting lounge facilities for connecting flights and many more. Now why do companies have to offer the privilege membership programs just to retain customers, well it has several other awesome benefits, which are discussed below:
It is obvious that different type of privilege program will yield different results, but as a business owner, you must not overlook the fact that the customer privilege programs have stood the test of time and have proven to be a great success in attracting new customers in almost all the industries. Today, as the customers have a wide array of options to choose from, the loyalty is minimum. People prefer being doing business with companies that offer them a few perks and freebies. In such circumstances, privilege program is an excellent way to tap in new customers. For instance, if a company like Jet Airways is offering jetprivilege membership, it is obvious that people would choose to fly with the airline rather than any other airline simply because of the fact that other companies are not offering them anything substantial.
Most of the business organizations when they think of privilege membership programs, imagine a large chunk of their existing resources being funneled into a program that may or may not yield success. However, in reality, seeking new customers is very expensive these days. A research conducted by Forbes suggests that retaining the existing customers is up to 7 times cheaper than acquiring a new customer. Thus, the resource that you utilize for the privilege membership program will surely pay rich dividends in helping you retain your customers and thereby giving you full value for the worth of your resources.
Every business owner would agree that earning goodwill among the customers is the hardest thing to do. This is where privilege membership programs play a great role in helping business boost their reputation and make an impact on the customer’s mind. The programs serve a dual purpose, it not only helps in luring new customer and retaining their interest in your goods and services but also it makes the existing loyal customers feel special and valued for their patronage with you.
While the privilege membership program may not have any effect on the goods and services that you are offering to the customers, your initiative of offering additional rewards and perks for your loyal customers makes your business stand out from the competition. By offering the privileged program, you are sending a loud and clear message to the existing and potential customers that you are not only interested in minting money off purchases but also you are here to build a strong relationship with the customers. This act of goodwill will improve the overall outlook of your company and make the customers feel happy, which ultimately will have a positive impact on your business.