You must have seen many companies which give you an option to buy their “premium memberships”. However, every company calls it with another name for their VIP plans like “Amazon Prime”, “Zomato Gold”, etc. These are customer loyalty programs that reward customers and encourage them to bear additional purchases. There is a series of reasons to do that. Such customer loyalty cards increase sales without compromising marketing budget. Here is why you should provide membership perks.
According to some report success rate of selling existing customer is 60-70% but at the same time, the success rate of selling new customer is 5-20%. Hence, you should focus more on your existing customers to generate higher profit with low cost marketing. In this post, we are going to reveal them all and help you decide whether you should also have VIP memberships or not and how to create A VIP Program for your small business.
8 Reasons why You should Provide Loyalty Rewards
Make Them Feel special
When people buy VIP membership in your service, they feel special. It is because, of course, you will provide some special service to your VIP members. If you have a restaurant, you can provide free home delivery, special booking, special treatment, etc. to your VIP customers. It will make them feel different and special.
When people will feel special, they will end up becoming your permanent customers. Also, if they have a VIP membership, they will come to you, at least till they have their VIP membership is valid. Moreover, if you can initiate the automatic renewal of their membership, it will be great for your business. I hate Amazon Prime but I still don’t quit it’s membership because I think Rs. 120/month is not a big deal and I don’t have to pay manually its fully automated system.
You can provide a reward system in your VIP membership. You can give them points on buying something particular or discount on bringing another VIP member. Furthermore, you can test your new service or product by providing points to the VIP members on using it. You can ask for their reviews and make changes accordingly. Moreover, provide points on a particular number of purchases, it will increase your sales.
Increase User Base
As people will share their code and bring you more people to get rewards, you will acquire more customers. It will eventually increase your sales. However, please don’t overdo it if you don’t have enough funds. Customer loyalty program ideas help a lot in building your customer base.
If you provide customer loyalty cards to your VIP members, it will be great for marketing. Most of the humans are social animals, and they like to show off. Most of your VIP members will show their VIP cards off to others. It will be great for your marketing. Also, when your VIP member will see their VIP card, it will remind them about your service. They are more likely to come to you if they see something related to you again and again.
I’m not buying Netflix’s subscription only because I already have Prime’s. Even though I know Netflix is much better and I hate Prime, I use Prime. It is because, somewhere in my subconscious mind, I have become loyal to it. I don’t want to hassle again to register and buying some other service.
In one or the other way, Prime has made me a loyal customer. Just like me, other people will become your loyal customer and will think a lot before going to another service. And after thinking a lot, if they are lazy like me, they will end up compromising. Unless you give a terrible service, they will be your loyal customers.
You can provide exclusive access to your new product to your VIP members. It will make them feel more special as only they will have that product. Also, you don’t have to worry about the stock. It will be out if your customers are loyal enough. However, analyze your customers first and provide a good exclusive product or service.
If you have a restaurant and exclusively selling a new phone, it will be disastrous, because people come to you for food. Or if your exclusive product is out of fashion as if you are exclusively selling a feature phone or even an old-style smartphone (with bezels), no one’s gonna buy it.
Build Community Forum
Customers always trust more on their peers and they love to engage with them. Thus VIP Membership program will give you an opportunity to build a community forum where people can share their positive or negative feedback on the same platform. It will help you to make your product or services better.
Should You Provide VIP Membership?
Although VIP membership is great to have in your business, it depends on the nature of your business. If you have a car showroom, there is no point in giving VIP memberships because people don’t buy cars every day or every month. Whereas, if you have a grocery store, you can provide VIP membership with services like free home delivery and that the customer can give you their grocery list so that they don’t have to waste their time in choosing their stuff, etc. This was just an example. Create your ideas and use them in your VIP memberships.
However, I don’t have to repeat the points of importance but VIP membership work. Your customers cannot go to your competitors until their VIP membership get invalid. Please check your service’s nature if it is compatible with VIP membership or not. Also, you can even lose your other “non-VIP” members if you give stupid service in your VIP membership. Think a lot and then decide on every aspect of your business.
Consider it your baby, because it is. Your business is not just your effort, many people, directly or indirectly helped you a lot. So take every step carefully.
Do you have a VIP membership to any service? Please comment down below. Also, share this post with all your friends.