Acquiring new customers is great, but keeping your existing customers is the most effective way to generate steady profit and grow your business. There are several interesting statistics that support this: 20% of existing customers can drive 80% of your future profits, and about 80% of a company’s business is generated from 20% of its existing customer base. One of the best ways to keep your customers is through customer loyalty programs.
Clearly, customer loyalty programs, which is fundamental in customer retention, is one of the key ways to grow a business. The major challenge is that businesses are finding it increasingly difficult to hold on to existing customers. You will need to be more strategic to keep your existing customers and attract new ones. To point you in the right direction, we will briefly discuss nine tips that can help you implement successful customer loyalty programs in 2020:
Start By Conducting a Relevant Research
There is a need to see what others are doing and then think of better ways to make your customer loyalty programs more interesting for your customers. There is no way you can achieve that without proper research. By researching the various ways to approach customer loyalty and what your competitions have been doing in that regard, you will be able to find the one that suits your business requirement. Conducting relevant research will also give you clarity on the objective of your campaign.
Offer Easy Loyalty Rewards Program
Your customer loyalty programs should be simple and straightforward. The process of earning and redeeming points must be very easy that every customer will understand and appreciate it. If it is overcomplicated, the chances are high that some will not understand and will quickly ignore it. Making purchases is normally the easiest way to earn points, but you can also include other kinds of interactions like sharing social posts. You must also update customers regularly about their progress in the program.
Use Gamification Effectively
Gamification is a term that is used to describe an improved version of the traditional loyalty reward practice of collecting points to earn rewards. Here, you may want to put a fun and social spin to it. It can become more effective when you include an opportunity for participants to progress towards a goal with more milestones. The basic rule is that the rewards must make financial sense for your business and also offer something that your customers want. A scratch-and-win game or an opportunity to participate in open contests are good examples of gamification strategies. You just have to make sure that it offers value to the customer.
Create VIP Tiers
This is another little secret that works wonders in customer loyalty programs. By creating a system that offers more perks for the most active and valued customers, you will get more people to embrace the programs and aim for the extra perks. You can offer more points for more dollars spent, exclusive offers for the high-ranking VIP customers, and similar tricks. Whatever you feel will motivate your customer can be used.
Find Effective Ways to Encourage Referrals
Your reward program will be more successful when participants refer family and friends. You can encourage this by simply awarding more points for each referral. The best part is that referrals always work better than advertising. When done the right way, you can spend less to get more loyal customers.
Promote Your Loyalty Program across Different Channels
More customers will participate in your loyalty programs when you offer different channels for communication and participation. You will likely earn more rewards when you promote your program through email, social media, apps, mailings, in-store signage, and more channels.
Stay In Touch through Socials
Most of your customers are on social media, and the different platforms offer effective ways to connect and engage with them. During your loyalty programs, try as much as possible to stay in touch through social media. You can also reward customers on socials for helpful interactions.
Personalize the Program for your Costumers
A little bit of personalization in your loyalty reward programs will appeal to most customers. This doesn’t require too many resources to achieve. You will be surprised that most customers will be willing to share information in exchange for personalized attention and rewards. The goal is to make everyone feel valued.
Use Customer Feedback to Strengthen Your Brand
You will get a lot of feedback during an interesting customer loyalty program, and you should not disregard them. Most customers will only voice their concerns when there is something at stake. You can use all the feedback to improve your business and strengthen your brand. Collect as much information as you can and use accordingly to make strategic decisions that will improve your business.
Customer loyalty programs are essential for customer retention, which is integral to growing your business. You need to approach it the right way to get the desired results. The tips discussed here can be helpful, but you must be ready to be innovative every step of the way.
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