6 Reasons why you need a VIP Loyalty Program
What are your business goals for the coming year? Increase revenue? Consistent sales? Additional exposure? Consider a VIP loyalty program as part of your marketing mix to help meet the goal you have in mind.
A VIP loyalty program helps you identify, track and reward top customers of your business, ultimately increasing brand awareness and advocacy to encourage purchases from both frequent and first-time buyers. Examples of national VIP loyalty programs are Sephora's Beauty Insider program and Marriott Bonvoy Rewards, to name just a few.
Why consider a VIP program?
Treating every customer the same sounds like a nice business practice. It is in fact an excellent customer service tactic. But did you know that your Brand Champions (or VIP customers) are actually contributing more to your business. Studies have shown that 66% of sales come from 25% of customers.
Yes. A quarter of your customers contribute to more than half of your revenue. VIP customers bring in consistent revenue. These customers frequently visit, spend more than other customers, and are more likely to refer friends and family to your business.
If you are not sure about starting a VIP loyalty program, here are 6 reasons to do so:
- Boost Sales Numbers: A VIP program encourages repeat purchases. VIP benefits such as a special offer can increase the number of sales made, even at slower times of the year.
- Increase Brand Loyalty: Inclusion and participation equal loyalty. Incentivize action through loyalty points and exclusive offers.
- Encourage Customer Engagement: VIP programs or loyalty rewards often include regular offers and opportunities that encourage customers to check in frequently to see what's new. This pattern leads to more interaction with a brand across social media and on the brand's website.
- Make Customers Feel Special: A VIP loyalty program allows customers to feel like they're part of an exclusive club. One example of this is early access to a new product or service before it becomes available to the public.
- Generate Helpful Feedback: Leverage VIP customers to get valuable feedback that can be used to improve the product or service available to all customers.
- Create More Referral Opportunities: If your customer is happy and engaged with your brand, they can recommend it to a friend. Incentivize sharing by offering bonus reward points for referrals to your website.
Reward your most loyal customers as a fast way to build brand awareness, give back to your most dedicated Brand Ambassadors and drive profitable repeat sales. And it creates a feeling of community.
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