Big retailers have the budget and the knowledge of loyalty programs so they often get the recognition. This is because established brands like supermarkets, airlines, and restaurant chains have developed extensive and effective loyalty programs.
But what about startups? Do startups need loyalty programs?
Yes, though for some reason loyalty programs seem to be underdeveloped among startups. Here are three reasons why loyalty programs are just as important for startups as they are for large established retailers:
1. Get started early. The purpose of a loyalty program is not to acquire one-time customers but rather, to develop strong and established relationships with customers. These customers will evangelize your brand to friends and family and sooner than you know it, you might not be just a startup anymore.
2. Capitalize on customer information. Loyalty programs put the customer information you have to fantastic use. You not only get to know your customers but you get to know how they use your productâwhether that be an app or a physical product. This knowledge will aid tremendously in business development. Think about a great social CRM strategy from your loyalty database.
3. Makes you more competitive. Who has the top loyalty programs? The top retailers and service providers. So why not join them and make yourself more competitive? A perk for loyalty to a big retailer can be the same perk for loyalty to your startup.
Learn more about loyalty programs at the 2013 Customer Festival this October where top marketers and c-levels will be discussing solutions to these kinds of issues.[image – flickr Daniel Dionne]