We’ve all heard of the 80/20 rule. In retail, it states that 80% of sales comes from 20% of customers.
That small percentage of customers represents your most important ones. They’re the ones that already have a strong affinity for your brand and want to be engaged with it as much as possible.
Here’s why you should offer them a premium loyalty program.
Your Best Customers are Already More Loyal
If the top 20% of your customer base accounts for roughly 80% of your sales, they represent your most engaged and passionate members.
These customers want more from your brand and will gladly spread the word about you to family and friends. These customers are your target segment for a premium loyalty program.
In fact, 84% of consumers are likely to recommend a retailer to friends or family when the retailer offers a paid loyalty program with benefits that are valuable.
To these customers, the membership fee connected to a premium loyalty program is merely a small investment for the attractive benefits they receive in return.
They see immense value in the program and heightened engagement opportunities.
A premium loyalty program puts your customers at the center of everything you do.
These programs keep the brand top of mind for members. Often, premium loyalty programs become part of a person’s daily life.
Your Best Customers Give You The Best Results
Your best customers behave that way because they have an emotional attachment to the company. Add in rewards and perks that customers desire, and a premium loyalty program raises that emotional connection to another level.
Traditional, transaction-based loyalty programs focus on getting people to sign up (that 80%), while premium loyalty programs really focus on that all-important 20%.
A brand’s top customers become more important because of stronger bonds that nurture two-way conversations. Rewarding your best customers elevates engagement and allows for loyalty inroads with newer ones.
As your best customers drive your premium loyalty program, a new company culture develops that perpetuates higher engagement levels and personalized interactions.
Eighty-seven percent of consumers who are satisfied with the special benefits offered by a retailer’s paid loyalty program will likely choose that retailer over a competitor that is offering a lower price.
That sense of exclusivity means members will engage more regularly, buy more often, and provide higher AOV.
Premium Loyalty is the Best of the Brand for Your Best Customers
The reason why we call these loyalty programs “premium” is because they are for your best customers. You are offering the best benefits and experiences that represent your brand to your best and most loyal customers.
The goal of any premium loyalty program is to have your best customers raise their hands to participate. You want to build a program so valuable that your customers are willing to pay for it.
Developing sustainable, two-way relationships is the key to competitive differentiation and successful premium loyalty programs.
Premium loyalty is all about instant gratification, awesome 24/7 benefits, and putting the customer at the center of everything you do.
It’s about giving the best your brand has to offer to your best customers.
The Best for the Best
A premium loyalty targets the top 20% of your customer base.
This represents your best, most engaged, and most loyal customers.
The customers who become members are the ones who are driving the bulk of your revenue. They want the best from your brand.
And that’s what they get in a premium loyalty program.
How would your best customers benefit from a premium loyalty program unique to your brand?