Did you know that nearly 60% of consumers say that earning rewards points is one of the most valuable aspects of shopping? Furthermore, research shows that the ROI on selling to a current customer is as high as 70% while a new customer can be as low as 5 percent.
These numbers show that loyalty programs are a valuable aspect of your business. If you’re looking to take your marketing strategy to the next level then you need to consider loyalty marketing.
Don’t worry if you don’t know what that is or how to implement it because you’re in the right place. Keep reading to learn all about loyalty marketing including its many benefits.
What Is Loyalty Marketing?
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Business marketing experts everywhere agree that it’s easier and less expensive to keep a happy customer than to continually have to find new customers. That’s why many are turning to loyalty marketing to boost their business year over year.
Loyalty marketing is an incentive program you use to entice current and past customers to continue to do business with you. Increasing customer retention will increase profits and grow your business without needing to find new customers or add to your product catalog.
People want to do business with companies they know and trust. You can build that trust relationship by building engagement and creating incentives for previous buyers to return and purchase again. Some examples of great loyalty programs include:
- Rewards cards
- VIP membership programs
- Points programs
- Discount programs
- Referrals discounts
As you can see there are many ways you can incentivize current customers to remain loyal customers. This will bring you a continuous source of sales for years to come.
Why You Should Use Loyalty Marketing Programs In Your Business
There are several benefits of creating a loyalty program. Some will have a larger scope and will take more time to create and integrate into your business. Others are easier to get started and will give you immediate benefits.
Drive More Business
As previously shown, a winning customer loyalty marketing program will provide a source of new and continual sales. In addition, happy customers will post on social media each time they purchase. These posts are an optimal and organic way to grow your brand and bring new customers at the same time.
Save On Costs
It always costs more money to find new customers than to retain current customers. If you’re tired of spending money every month on social media advertising then consider creating a referral program that incentivizes your current customer base to share for you.
Build Customer Data
In today’s business environment, big data is invaluable. And when you create a rewards card that your customers use each time they shop with you then you can save the information from each purchase.
This information provides you with a wealth of information and allows you to customize your interactions with your customers. People want to feel like they have a relationship with your company. Personalized marketing helps you to build that relationship and improve engagement with your customers.
Improve Customer Service
Creating an amazing customer experience for your clientele is imperative to growing a thriving business. Building a relationship with your customers on social media, tracking their purchasing habits, and personalizing communication with them are all ways that a loyalty program can benefit your business.
As you grow your business through the years, it will become easier for you to predict your income for each month and quarter. You’ll be able to use the data mentioned earlier to watch for trends and purchasing habits of your customers. This will give you predictability and reliability you can count on as you grow your business.
Tips For Creating Winning Marketing Strategies For Your Loyalty Program
Some of the top tips from experts, such as Kobie, for getting the most from your loyalty program include using social media, encouraging dialog with your customers, and teaming up with a charity.
Make The Most Of Social Media
You have exclusive access to your best customers without having to spend any money. You can reach them anywhere including their kid’s soccer game or on their living room couch. Never before have marketers been able to engage so intimately with their audience as you can now with social media.
Use social media to build engagement with your best customers and they’ll help you spread the word about your business. Be sure to post consistently and reply to all comments on every post. Run giveaways, promotions, and sales through your social media account to encourage your customers to check in regularly so they don’t miss a thing.
Request Customer Feedback
People love to give their opinion and your customers aren’t any different. They want to feel heard and that their thoughts matter. Ask your current customer list for feedback on your products, customer service, and any other aspect of your business.
Create a short survey asking your customers for their opinion on where you currently stand as well as how you can improve in the future. Send out this survey to your email list and, of course, post it on social media.
Support A Cause
Another unique way to encourage customers to stay loyal to your company is to partner with a cause. You can choose a local charity or a worldwide concern. Take your time to find a cause that aligns with your company’s mission statement and values.
Once you have a charity or cause you’re going to champion, reach out to social media influencers and create a campaign to spread the word. This will build awareness for both your brand and your charity making it a win for everyone.
Build Your Business By Building Relationships With Your Customers
As you can see there are many ways you can use loyalty marketing to grow your business. Create repeat customers through incentives and long-lasting relationships. Take the time to build engagement and your loyal customers will stick with you for years to come.
For more great information on this and other topics check out the rest of our blog.