Loyalty programs vs discounts: and the winner is…

Loyalty programs vs discounts: and the winner is…

Loyalty programs vs discounts: and the winner is… 1201 631 Pharmacy2020

Many pharmacies use discounts on consumer products to attract new customers and, consequently, to increase sales. This short-term practice is out of date, because modern pharmacists need to plan on a long-term basis and not to rely on temporary revenue increase. In the long run, only the acquisition of a solid customer base, the customer engagement and the development of lasting & profitable relationships with the customers can guarantee the sustainability of a pharmacy.

Loyalty programs have proven to be the ideal vehicle for the development of a pharmacy. They are much more effective than a discount-based policy and pharmacists can confirm that an increase in sales based on discount policies is not accompanied by attracted customers on a permanent basis. In other words, consumers will visit the pharmacy during the discount period, but they will not show up again. On the other hand, loyalty programs reward regular customers, generate more sales and build fixed relationships between the pharmacy and its audience. Program members often spend 20% to 30% more per transaction and remain loyal customers for a longer period of time.

A loyalty program can turn an occasional consumer into a permanent customer of your pharmacy. In addition, loyalty programs pay attention to each customer’s specific purchase preferences. You can use a wide variety of techniques and modern approaches to reach your consumers, such as email marketing, in-store promotions, mobile marketing and social media, in order to inform them about sales events or motivate them to redeem their points, prompting them to visit your pharmacy. What is more, happy customers who collect points and redeem them will prove the best ambassadors! Word-of-mouth advertising is the most efficient marketing tool and, moreover, it is free of charge!

Overall, a well-executed loyalty program helps increase customer engagement, boost customer experience and generate more sales for a pharmacy.