Customer Loyalty Programs: Incentivize Online Customers

Salma
September 22, 2021

Customer loyalty can have a huge impact on your business. It can be very beneficial especially to local and small businesses that need to utilize brand loyalty to their best advantage. In addition to boosting your sales and retaining loyal customers, loyalty programs can also help you reach new customers and enhance brand loyalty overall. While brand loyalty programs may not seem like a big concern for your business, it is definitely a great upselling technique that you need to consider to encourage your customers to return and place more orders with you.

Learn more about brand loyalty, customer loyalty programs and how to start reaping its benefits with ChatFood in this article!


What is customer loyalty?

Having a loyal customer means having a customer that is willing to return to your brand and purchase from it repeatedly. A customer would only do this if he has an overall exceptional experience when he deals with your business. Programs to achieve customer loyalty are not new practises, for years marketers have been designing them to bond customers with their services or products. Offering additional incentive to secure customer loyalty is an especially necessary strategy for small local businesses, local restaurants and food stores in general.

Known as a “1:1 Marketing” technique, customer loyalty programs help you grow your business and attain more customers faster than many new marketing and advertising techniques.


How do I attract loyal customers?

Now that we agree that ensuring customer loyalty practices is an effective method to increase revenue, let’s explore what makes a customer loyal. To instill and maintain customer loyalty, it is essential to understand what a loyal customer is like, and what attracts them to your business. Building an ongoing successful relationship with a customer that engages with your brand continuously is a direct byproduct of great customer experience. It is a relationship based on trust first and foremost. 

A loyal customer is one that orders repeatedly from your brand, stays engaged with it and interacts with it on different levels. Having a loyal customer base means having happy customers that dealt with you numerous times and provide positive feedback to you. In addition to providing trustworthy and positive customer experiences, competitive prices, discounts, convenient services and loyalty programs are other great techniques that enable food business owners to attain loyal customers.


Customer loyalty online vs. in-store

While online businesses are equipped with many marketing tools and channels to grow online, building customer relationships that are based on trust and loyalty can be a bit challenging. Online food ordering and delivery grew beyond everyone’s expectations due to quarantine and social distancing regulations that started almost 2 years ago. Restrictions are indeed easing greatly; however, online orders and delivery will always be a huge part of any successful restaurant or food business’s revenue.

Building loyalty in-store involves recognizing your repeated customers, engaging with them, recognizing the regular orders and creating a personal relationship with them. This incentivizes your truly loyal customer to come back again and talk positively about your business with others. Online food delivery portals make it extremely difficult for businesses to form meaningful customer relationships to begin with, making building a loyal customer base online even more difficult.

If you are one of our clients, we hope you agree that ChatFood made this a problem of the past by allowing you direct access and contact to your customers. If you’re not one of our clients, we encourage you to keep reading to discover how ChatFood can empower you in your endeavours to build a loyal customer base!


How can customer loyalty programs benefit your business?

If you’re still not convinced of the value having a customized loyalty program brings to your business, we are sure these numbers will change your mind! Based on our analysis covering 933 businesses and 664,000 orders, we concluded that businesses that offer a loyalty rewards program have 74% more monthly active users than those who don’t.

Those businesses also scored 68% more returning customers and 47% more orders when they activated their customized loyalty program on ChatFood. Generally, it costs less to sell to repeat customers through loyalty programs than it is to acquire new ones. Here are some more benefits of having a loyalty programs or reward points programs:

  • Customer loyalty programs can increase your revenue by incentivizing customers to repeatedly order online directly from you.
  • Loyalty programs will render customers more likely to stay engaged with you for a longer time, translating into higher customer retention for your business.
  • Loyal customers can be brand advocates that will help you generate referral traffic through word-of-mouth marketing.
  • Customer loyalty programs can instill the sense of trust between you and customers, which means they will always choose you over your competitors.
  • Cashback and rewards points can encourage customers to engage with you on different communication and social media channels.


Start your customer loyalty program with ChatFood

You can start building your brand loyalty online and increase customer loyalty by implementing your own easily customized loyalty program with ChatFood. Our online ordering system informs you when you receive an order from a repeat customer, so you can know and decide what to do next. This helps you identify your repeat customers and make smart decisions to keep them engaged!

customer-loyalty-program-example

ChatFood empowers businesses with the essential tools to create their loyalty program, re-engage customers with automated reactivation campaigns and retain them by rewarding them when they order directly. Our customer loyalty program tool is easily customizable to suit your brand and allows you to have full control to adjust the cash-back percentage, maximum redeemable value, and validity period to suit your needs.


Set up your online store in less than an hour and have access to all the tools you need to manage your business online today!


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