Customer loyalty is something that is earned over time. There is no guarantee that after their first purchase, a customer will continue to buy from you. In fact, the odds are stacked against you. That’s because competition is fierce and consumers often shop on price and discounts alone. You’re going to have to convince shoppers and business buyers to stick with you. If you execute a few of these tips to build customer loyalty with gift card rewards, your market cap potential can expand multifold. Focus on customer loyalty and the pump will be primed from there.

How Do Customer Loyalty Programs Work?

At the most basic level, loyalty programs provide positive reinforcement that motivates a purchase decision. Sales perks are one example of this kind encouragement. And once a customer is loyal, it costs less to retain them over time. The impact of customer retention on profit margins is often dramatic. When you make repeat purchases appealing, your business scales more quickly. 

  1. Enable Digital Sign-up: Customers are invited to join the loyalty program. They are asked to provide their contact information. The gold is in the data, so be sure your database tracks their purchase history and preferences. That will allow you to create more appealing offers in the future.
  2. Distribute Points or Rewards: Loyalty programs are often designed with a gamification or fulfillment component. Performing desired behaviors like referring friends or leaving product reviews create a pool of earnings. Those earnings accumulate over time and can be cashed out for something valuable, like a gift card reward.
  3. Structure tiered levels: Some loyalty programs offer tiered levels of membership. Customize the tiers to your program based  based on the types of behaviors your are attempting to drive. As customers graduate to higher levels, they may be offered additional benefits.
  4. Get Creative with Seasonality: Make sure your campaigns and communications are compelling and break through the clutter. When your themes center around occasions and holidays, loyalty programs become more fun and engaging.

Building Customer Loyalty Pays Off

Customer loyalty is a proven business builder. When you rely on gift card rewards to engender loyalty and build your customer base, you’re tapping into a mine of opportunity. Studies show that loyalty and rewards go hand in hand*.

  • 77% of consumers say loyalty programs make them more likely to stay with a brand. 
  • 78% of consumers are more likely to participate in a loyalty program if they can earn points for activities beyond purchases. 
  • Approximately 50% of customers will refer their friends or family members if there is a direct referral incentive. 
  • 80% of consumers are more likely to do business with a company that offers personalized experiences. 
  • 79% of customers would be more likely to join a loyalty program if they could earn points for leaving a product review. 
  • Loyal customers are worth up to 10 times as much as their first purchase. 

Gift Cards are the Best Loyalty Rewards

With no long term commitments, no minimum orders and the greatest selection of popular gift card brands, the eGifter Rewards gift card platform is where it’s at. Schedule a demo today and see for yourself.