3 Steps To Customer Loyalty Program Success
A Deloitte survey found that businesses with loyalty programs, on average, are 88% more profitable than competitors who do not.
By PEER ARNO SCHMIDT
88% more profitable than competitors
A Deloitte survey found that businesses with loyalty programs, on average, are 88% more profitable than competitors who do not. But having a loyalty program in place doesn’t mean it will automatically work. With these three steps, you can ensure your customers are participating and excited to come back in the door.
New customers vs. Loyal customers
Reaching Customer Loyalty is a long road and one worthwhile to go – returning customers are 80% more likely to re-buy as compared to new customers! One may also consider that attracting new customers is on average 6 times more expensive than attracting loyal customers.
Driving Growth and Profitability
According to Harvard Business Review, customer loyalty is the single most important driver of growth and profitability for your business.
Your biggest asset is your existing customers, so whether you use Facebook, email, text messages, or a simple spiral notebook, make it easy for them to join.
Train your staff to ask the customers before every purchase if they are part of your loyalty program.
Reward your employees for encouraging customers to sign up.
1. Make customers want to return with a compelling reward to earn
Set up a loyalty program that is attractive and memorable to encourage visits.
Make the first reward easily attainable to delight the customer.
Build multiple reward tiers to encourage customers to visit frequently save up for bigger rewards.
2. Sign up as many customers to your reward program as possible
Your biggest asset is your existing customers, so whether you use Facebook, email, text messages, or a simple spiral notebook, make it easy for them to join.
Train your staff to ask the customers before every purchase if they are part of your loyalty program.
Reward your employees for encouraging customers to sign up.
For a good customer list to regularly communicate with, shoot for over 1000 customers participating in your rewards program.
3. Stay top of mind by engaging your customers
Customers will naturally start visiting more often as they received their payment of CashBack (in their bank account).
Recognize and celebrate your VIP customers, those who visit most frequently and mention you to the most new customers.
As customers start experiencing CashBack, you will see their visit frequency increase even more!
* THE BIG ASTERISK
You can have a fantastic rewards program for your customers, but that will all go down the drain if you don’t have the fantastic customer service to match it.
The most important thing is to continually delight your customers, and as a side effect, they will be willing to spend more time and money with you.
[7 in 10 Americans said they were willing to spend more with companies they believe provide excellent customer service. – American Express Survey]So show customers that you care and appreciate them, continually get customer feedback, and build long term relationships with every customer.