5 good reasons to start a loyalty program or a customer club

13. January 2020

5 good reasons to start a loyalty program or a customer club

Big, successful companies have their own customer clubs, but that doesn’t mean smaller companies can’t. In this post, Robert Bengtsson presents 5 reasons to start a customer club – no matter the company size


Customer clubs and loyalty programs are obvious choices for almost all major retailer chains and web shops. Modern retailers such as Boozt, Amazon, XXL, and Zalando clearly show that a loyalty program is a key part of their operations – and it is only becoming more important.

But is it worth the trouble? And is it even possible for a smaller chain or web shop? For most people, the answer will be a big and loud YES.

Therefore, we present to you: 5 benefits a loyalty program can create for you.

1) There is money to earn

Imagine that a large portion of your customers make an extra purchase with you each year – that doesn’t sound too bad, does it? The fact that customer club members make multiple purchases has been showed over and over again. It is usually one of the main reason companies decide to give a loyalty program a chance.

But it’s far from the only way a customer club can show its value. The opportunity to personalize your communication and make it more relevant to the recipient is of great value. For example, if a customer receives more relevant offers, it’s more likely that she will end up making a purchase. This benefits not just your customers, but also you.

But personalized communication also sends another, more indirect message: that your care about your customers and that they are important to you.

The last, but far from least, reason for starting a customer club is the way it helps you keep your existing customers. You don’t have to spend all of your energy and your entire budget on recruiting new customers. Your existing customers feel seen and acknowledged, therefore, they stay with you.

The result? That, you should be able to see on the bottom line.

2) You become closer with your customers

In addition to the opportunity to see your customers more often, you can also get closer to them in other ways.

By gathering information about members’ behavior and buying patterns, you can get a much clearer understanding of how your customers think and act. The next step is to turn this into concrete actions that make you more attractive to your customers.

Another way to reduce the distance between you and your customers is through the magic of two-way communication. Take advantage of the opportunity to do surveys and follow up on the answers you receive. It gives you the chance to map out what customers think about your store setup or your business hours – yes, basically everything you need to know in order to optimize your business.

Results: The information gained from customer feedback is valuable and unique – and it will help your business grow.

3) It is appreciated by the customers

Are your customers already asking if you have a customer club for them to join? If so, that’s a good sign! This means that the customers like what you do and want more of it. You can use different incentives to reward your members and make them feel valued.

A personalized loyalty program can help your customers to create an emotional bond to your brand. It is important to earn their trust in case the future would bring on stormy weather. Maybe you businesses experience problems with poor service or quality – then that trust will be beneficial.

You can also increase each member’s engagement even more by offering exclusive VIP nights, pre-sale for members only, or why not surprise them with a birthday gift.

4) It is both fun and rewarding

Let’s put all the financial and practical arguments to the side for a moment. A well-executed loyalty program is often rewarding, educational and fun. Not just for the customer, but also for you! Focus on building relationships with your customers and sharing the fun with them. That way you create a feeling of companionship.

If you happen to be extra lucky, your customer club also has an element of special interest – it can be anything from gardening to fishing – an interest that you share with your customers. If you focus on the “geekiness”, you will have the chance to achieve an even stronger bond with your customers.

5) It is much easier than you think

It doesn’t have to be difficult to get a loyalty program up and running. In just a few hours, you can start recruiting and creating value for your customers.

Do you want added value by linking e-ecommerce, the checkout system, or the ERP system? Then let’s do that. It is usually done very smoothly as system vendors often have completed integrations to the most common systems – and are actively interested in making even more.

Are you a small store chain or web shop? No problem. You also have the chance to enjoy the benefits that a loyalty program brings. Benefits that your big competitors have enjoyed for a long time. Now it’s your turn!

Here at InterMail, we offer a cloud-based loyalty program which we continuously improve and develop. Let us introduce you to IM Loyalty. We don’t just sell you a system, we also help you to get the best out of the system in order for you to eventually see a difference on the bottom line. Feel free to reach out to us – no matter how far you are in the process. We are here to help you succeed!

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