Why Companies Program You to Be Loyal!

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You love doing business with your favorite brand or service. You notice that they have a loyalty program and you think this is icing on the cake. Wait, why would they want to do something extra for me when I am going to buy anyway? Well, that is because if they turn you from a user to a true believer, then you will give them more value. I am not just talking more of your dollars, but I am talking about word of mouth advertising, long term profits and less complaining. 

You may not understand the value of not complaining but businesses certainly do. If you are a true believer in a product or service, you are going to let certain mistakes and behaviors slide more often than just a regular user of the company. That is because you love them. When you love someone or something you are more understanding of them. Companies have to spend a lot of time and money to deal with difficult customers. It is found through that difficult customers only contribute to about twenty percent of a company’s profits but waste about eighty percent of a company’s resources. The opposite is true for true believing customers; they contribute to about eighty percent of the profits. So, you can see why companies would be interested in getting or turning customers into the complete loyalists. You can check out a more in-depth explanation on Entrepreneur magazine

How much value do you give as a customer to a company? More than you would think because even if you don’t tweet every day about how great the company is, just once is enough. People buy based on trust, if your friend that you trust, recommends a product you are much more likely to get that product, then if something else attempts to influence you. Companies are depending on that trust that you provide to your network. Now with social media influencers, that game has changed, times a hundred. There is a way to calculate your value or your customers, that is with a value calculator that are free from many websites. Here is some basic information about the calculation.  

Business is all about profit predictability. No one wants to invest in a company that cannot predict how much money they will make or if their profits are going to be increasing. There are dips but if the company is declining then forget it. That is why gauging how many loyal customers you have is paramount to a company’s success. Also, customers that are loyal tend to buy more as well. How do you find these fabulous people? Customer loyalty program companies can help you get on the right track. Because once you give customers a loyalty program you will know who they are so you can up-sell them and you can track them.

That is the best thing about a loyalty program, to know what customers you can count on. Also, customers benefit because they are rewarded for being the best. They love the attention and the special privileges that your company can offer. It is the ecosystem of a successful business. So, if you are a customer take full advantage of a company trying to give you some awesome perks for being their best.


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