Did you know that 82 percent of businesses believe customer retention is cheaper than customer acquisition? Makes sense, right? People are comfortable with what they know.
If you’re looking to save money, a strong customer loyalty marketing strategy is essential.
Read on to learn everything you need to know about loyalty marketing, as well as how you can use it to boost your business.
What Is Loyalty Marketing?
Loyalty marketing is a specific type of marketing strategy to encourage your current customers to keep coming back to you again and again.
When you do a good job of this, you’ll have a much easier time retaining customers and won’t have to worry about losing them to the competition.
Benefits of Brand Loyalty
One of the greatest benefits of loyalty marketing is that it helps you save money. After all, it’s five times as expensive to gain a new customer as it is to keep a current one around.
It’s also easier to sell new products to existing customers than it is to sell to new customers. Don’t forget, 80 percent of your company’s future revenue will come from 20 percent of existing customers.
How to Use Loyalty Marketing
Okay, you’re convinced that loyalty marketing is important. But, ow do you use it? How do you create an effective loyalty marketing strategy?
Here are some tips to help you get started:
- Make customer service a priority: Whether you’re running a business exclusively online or if you have a brick and mortar shop, the first step to building loyalty is offering great customer service to everyone who visits
- Keep in touch: Make sure you’re communicating with clients or customers regularly; reach out to them via email, for example, or connect with them on social media
- Ask for feedback: Ask your customers for feedback. Send out surveys in your email newsletter, leave comment cards in your store, or invite them to leave reviews online
- Incentivize loyalty: Make your loyalty programs extra attractive. One way to do that is by offering special benefits when people shop with you over and over again
- Offer payment programs: Consider offering payment programs to your loyal customers. Payment plans make it easier for people to continue shopping with you, even when their budgets are tight
- Give people a head start: When you’re introducing a loyalty program, it can help to give customers a head start. For example, when you start using punch cards, offer customers 2 punches for their first purchase to encourage them to come back
- Give social media shout outs: If someone tags your brand on social media, share their post on your stories or feed to say thank you
- Incentivize referrals: Encourage people to refer their friends and family to your business. Consider giving them a special referral code, for example, or offering a discount on their next purchase every time a new customer mentions their name
Start Building Customer Loyalty Today
The strategies listed above are proven to build customer loyalty and give your business the boost it needs. Start using loyalty marketing today and save money while your sales soar!