According to studies, we have discovered that obtaining a new customer is 6 to 7 times more expensive than retaining one that you already have – depending on your area of business. In terms of both, money as well as time, having a customer return to you is way easier than marketing to a new prospect and hooking him in.
So how do you keep your customer coming back to you? Though providing excellent services and quality products certainly works, sometimes you have to bring something extra to the table. Holding seasonal sales and introducing slashed prices for your older customers is one of the greatest ways to spike customer loyalty. A mere 5% increase in customer loyalty can translate to a 25% to 100% increase in your yearly profits!
The common man might think that the craziest discounts and sales offered by the biggest brands are to clear out an older collection of products to make room for new ones, but these promotions serve a higher purpose in addition to this.
Tools such as the magento rewards program are largely used in the modern corporate world to encourage people who have already done business with you to continue doing so. In the following paragraphs, we have discussed how you can use this brilliant marketing tactic to improve your overall sales.
The more loyal the customer, the better the rewards
Over 69% of the customers choose their retailer after considering if they will be eligible for collecting and using reward points in the future! This alone says how much you need a smart customer loyalty program to keep your sales up.
To keep even the loyal customers hooked on, you might like the idea of a gradually unfolding scheme. The longer a customer has stayed with you, the more benefits he is entitled to. This tactic works especially well as it makes shopping with you interesting, with the customers climbing levels like a game of Candy Crush.
Choose the right enticement
One of the most primary things to realize when employing a customer retaining scheme is that not all of your customers will like the same thing. Though some might like a discounted price on the next item they buy from you, others may prefer getting a complimentary gift that shows your appreciation as they pay the bill! In this case, a universal rewards program does not work as well with everybody.
To increase the number of loyal customers even more, go for a targeted approach. Either take the time out to study and analyze your customers behavior and guess which option they would like better, or provide them with both options and let them choose. The right reward is much more likelier to make loyal customers than a general scheme.
Limit your offers to specific platforms
Another smart thing to do when you are thinking of introducing a reward program for your customers is to group them by channels. For example, you may offer your Facebook followers a 20% off discount voucher, and introduce a buy 2 get 1 offer on your Instagram. People who have subscribed to your email newsletter might get a different reward altogether – maybe a free gift on purchase of five or more items at a time.
This does not only let your customers believe that each group is getting something exclusive, you are also more likely to generate customers that are connected with you on multiple platforms so they are eligible for everything. Ultimately, you are going to have a following that is so well connected with you that it always brings its business to you.