1 - Customer Retention

The main motive behind any loyalty program is to retain customers by rewarding them for shopping with you. Customer loyalty is based upon familiarity, value and trust. Loyalty programs heighten these feelings by helping to establish numerous positive experiences each time they make a purchase. 

2 - Capture Accurate Customer Data

 As soon as a customer registers to become a loyalty member their data is captured. Often, this data can give a complete profile of your customers buying habits and preferences. This can be used in multiple ways, but the most successful use it to profile your best customers and tailor your offerings to specific consumers. The more you know about your customers, the more you can tailor offers and promotions to them, the more profit you will make. 

3 - Reduce Unprofitable Customers 

One of the slightly less obvious pros of a loyalty program is the ability to reduce your number of unprofitable customers. If your loyalty system is well designed it will enable you to easily segment your customers into numerous groups - including profitable and unprofitable. Customers who only purchase discounted lines, or products on offer, on a regular basis can actually cost a business more money than they generate. A loyalty program can help you reward your more valuable customers, in turn easily retaining those that spend the most money while minimising the amount you spend on your less profitable customers.

4 - Increased Customer Communication 

Loyalty programs give you a direct communication channel to your customers. Walletly makes this even easier with push notifications to your customers via messenger and their mobile wallet. This channel can be used to promote or announce anything your audience will find valuable; special offers, new products, reminders to use a coupon before it runs out. The more you communicate with your customers, the more you will build that same feeling of familiarity and trust that makes loyalty systems so successful in the first place