Customer loyalty. It’s the one thing that all companies need to have in place so that they can do more than just attract people to their business but keep them coming back over and over again too. And although virtually every business owner is aware that providing good customer service is essential, there are some that are still hesitant to instill customer loyalty programs due to the additional time and potential expense that they involve.

So, if you’re someone who owns a company, you have yet to start up a loyalty program for your business and you’re interested in knowing about some of the benefits that come with having one, we have provided you with five main advantages below:

It helps you to keep the customers that you currently have. Definitely one of the best reasons to instill a loyalty program for your business is that it will help you to keep the customers that you currently have. That’s because there are many studies which indicate that by implementing things like point and reward programs, customers find themselves becoming excited about returning to certain businesses simply because they look forward to seeing what they can earn as a direct result.

It helps you to gain new customers too. Aside from having a strong brand and marketing campaign, one of the best ways to grow your business is to have your current customers tell others about how much they enjoy what you have to offer. And when you have a loyalty program in place, that will give you the good “word of mouth” you need to make prospective customers interested in you and in what they could possibly gain by supporting your company on a regular basis.

It gives you insight into your customers’ ever-evolving needs. There are a lot of companies that will provide incentives to customers who are willing to fill out questionnaires or surveys that they send through their social media accounts or their monthly newsletters. By asking your customers to specifically share some of their comments or to share some of their concerns, you can find out what you need to do in order to better meet their needs. And the happier they are, the more successful your company will be too.

It saves you money on promotional and advertising costs. There’s another benefit that comes with having a loyalty program. By establishing a database of what your clients purchase, you can avoid spending thousands of dollars mailing them flyers about sales and coupons that they might not even be interested in. For instance, if you know that Mrs. Smith purchases Hefty garbage bags and Crest toothpaste, you can send her discounts for those items via mail or better yet, email with confidence that she will probably use them. And you can avoid giving her a Pine-Sol coupon which your records shows she never buys.

It can strengthen your reputation. A part of the reason why companies like CVS, Kmart and Kroger’s are able to continue to do well is, in part, due to their loyalty program. In fact, it’s directly because of loyalty programs that many businesses are able to receive brilliant directories reviews. And with good reviews comes a good reputation which always works in a company’s favor—for years to come.

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