How Businesses Can Boost Customer Loyalty with Mobile Apps?by Alex Hales Business Analyst in San Jose
In today’s competitive business world, every organization is struggling to gain their customers’ attention and stay ahead of the race. Keeping the focus on seeing their customers return again and again, many are relying on robust customer loyalty solutions and companies without a strong loyalty program are the ones who are losing their customers to the competitors. Irrespective of what industry your business is, it is crucial to make your customers engaged towards your services and reward them for being your customers. With the increasing demand for the loyalty program for banks, banking institutions are considering a loyalty program as a part of their mobile app development process. In this article, we will find out how businesses can strengthen customer relationships with mobile loyalty app & help them in increasing retention rates & better ROI.
Significance of Loyalty in the Banking Sector
There is no denial in the fact that the financial services market is becoming competitive than ever with a tremendous increase of customer data into the market of payment wallets. Customers today have high digital expectations and many traditional banks have been slow to adopt digital transformation. Customers not only demand 24/7 access to their finances online but also wants personalized experiences that are based on their lifestyle and communications preferences. That is where customer loyalty needs action.
Banks need to move beyond transactional relationships to deeper ones for example-customers may need a relationship manager that can guide them for the risk of their banking transactions. Though exceptional customer service is still important for banks, it may not be enough to build true customer loyalty. Banks must have loyalty programs that enable them to offer rewards like sign-up bonuses, extra reward points, or lesser loan rates. One of the main reasons why bank loyalty programs tend to be successful is that they have a huge amount of data on customer spending habits, which can be analyzed deeply to offer reward programs that will make every customer feel special and unique.
If your banking organization doesn’t have a loyalty program and doesn’t give preferential treatment to existing customers, you may risk a huge amount of revenue. Retaining loyal customers with the help of a loyalty program can be the cost-effective and beneficial way as rewarding one customer can cost you 3-10 times less than acquiring a new one, depending on what industry your business is in.
Top Reasons Why Every Business Needs a Customized Loyalty Program
Winning customers’ hearts is what every business looks and this is what a loyalty program can do by retaining old customers and adding value to business growth. With the increased usage of smartphone users, having a mobile app can be a reminder to make your business a part of your customers’ daily lives.
Here are some of the main benefits of building a customer loyalty program-
- Reward & Retain Customers
A study states more than 60% of businesses using loyalty programs have been successful in enhancing sales by retaining and rewarding old customers. Maintaining existing customers is always better than making the new ones, as it can be 5 times costlier than retaining old ones. To increase the profit margins by 25-95%, all you need is a minimum of a 5% increase in retention rates.
- Boost Sales
One of the best benefits of building a loyalty program is keeping your customers return to your services again and again, as you are offering personalized customer experiences with everything they love. Your loyal customers not only buy repeatedly from your brand but also it will contribute to more than 60% of annual revenues.
- Reduced Advertising Spends
Do you know your loyal customers can be your brand influencers? Yes, if your customers love your services more than any other competitor, they can help in bringing new customers by spreading word of mouth, which means more customers with less/no marketing costs.
- Stay Ahead of the Race
Using an effective customer loyalty program, small and medium enterprises can stay ahead and gain a competitive advantage in the online marketplace dominated by big brands. Your loyalty program should offer something unique and better than what your competitors are offering to make them satisfied with your offerings.
Wrapping UpBuilding an effective customer loyalty program for a business can be a game-changer to retain repeat customers, which leads to better ROI and higher sales. Returning customers are important for the success of the business as they are the only ones who spend more & generate higher transactions. There are many Mobile App Development Companies in California that are helping organizations bond better with their customers & create strong relationships. If you are planning to build a customized solution for a loyalty program in your mobile app, get in touch with the skilled developers today and level up your business sales.
Created on Dec 16th 2020 03:51. Viewed 135 times.