You’ve probably heard what I’m about to say before: It’s more cost effective to retain a customer than to acquire a new customer. As a matter of fact, landing a new client or customer can cost as much as 25 times more ! Customers you’ve already established a relationship with also typically spend 67% more per order.
So then the question is, how can we keep customers then ??? LOYALTY PROGRAMS. Not too sure about it ? Here’s some reasons that’ll seal the deal for ya.
Loyalty programs also help you gather data about your customers and that data can help you make better decisions about your next move. You won’t have to guess who is spending what and how to advertise to who. The numbers will tell you. You can also get insight into your audiences shopping habits. You can find out how often they come and long they stay whether that’s in person or online.
You can also find out the top 5% most engaged customers so that you can give them special rewards. They definitely have the power to draw to you even more people. Tracking this data will also give you insight into what the best offers would be for the loyalty program.
When it comes to cranking out your ads and newsletters and other promotional items it’s always more effective to send them to people who have already offered up their information. Since they’re already expecting something from you also, they’re more likely to open or read it than someone who isn’t expecting a correspondence from you. Having a loyalty program where people can opt out and opt in as they please gives you the best group of people to send your promotional offers to.
Now we’ve focused on customer retention but loyalty programs can help lure new customers as well. When they see what benefits they can receive by being loyal it gives them an incentive to join your team over your competitors. Then once you get them to give you a chance, as long as you keep up great quality and customer service, you can have that customer for life.