A business loses more money trying to obtain a new customer than by selling to an existing one. Acquiring a new customer can cost 5 to 10 times more than by simply retaining your loyal clientele. So how do you keep customers buying your brand? Through loyalty programmes that is.
A points system is when frequent customers gain points resulting to an award, whether freebies or special customer treatment. One way of achieving a successful points system is by keeping it simple. The points system is the most common type of customer loyalty programmes and is best suited for businesses encouraging repeated, short-term purchases.
Reward Loyalty and Encourage Purchases
Strike a balance between realistic and desirable rewards. Provide small rewards as an initial offering for being a member of the program, and then encourage customers to step up by increasing the value of rewards. These types of programs work better for businesses with higher price-points, including hotels and airlines.
Sometimes, an annual or one-time fee that provides customers with VIP benefits can be advantageous to both the customer and the business. This type of program provides customers with an easier time shopping and is ideal for businesses that depend on frequent purchases.
Strategic partnerships or coalition programs are effective for company growth and customer retention. For example, if you are a company specializing in dog food, partner with a pet grooming facility or veterinary clinic.
Motivate your employees through employee incentive schemes. If your employees are motivated, chances are that the services they provide will reflect their satisfaction in the workplace. This results to pleasant interactions with customers, who can sense a positive and healthy dynamic between a business and its employees. Motivated employees communicate a strong belief to customers and potential buyers in the product or services they offer. Such confidence inspires customers to become repeat customers. These types of businesses also reflect honesty and transparency, which are among the top company values that a customer most appreciates.