Did you know that nearly 50% of businesses fail within the first five years? The good news is that there are steps you can take in order to prevent this scenario, including implementing a loyalty marketing strategy.
A common misconception is that loyalty marketing only applies to large or global brands. But, the principles can be applied at any scale.
One of the most important obligations you have as a business owner is maximizing customer loyalty. After all, it’s much better for your company to prioritize strong relationships with your existing customers as opposed to constantly seeking new ones. However, not everybody understands how to implement solid customer loyalty marketing.
Here is a brief guide that details why this is a crucial strategy that can save your business.
It Shows Your Customers That You Care
As you might guess, people will be more likely to do business with you if they feel as though you genuinely care about their results. The best way to show customers that you care is by offering loyalty rewards. When somebody makes a purchase, they should feel like they’re part of an exclusive club that’s going to save them money in the long run.
Incentives are a powerful tool, so use them wisely. Another great way to show your customers that you care is by offering them personalized service. In other words, don’t treat them like a number.
Get to know them on a first-name basis and ask about their day-to-day lives. If you can build a rapport with your customers, they’ll be much more likely to trust you and do business with you in the future.
It Shows That You’re Invested in Their Success
When you offer loyalty rewards or personalized service, it sends a strong signal to your customers that you’re invested in their success.
This is an incredibly powerful marketing tactic because it instills a sense of trust and cooperation between you and your customer base. And as we all know, trust is the cornerstone of any successful relationship.
It Separates You From Your Competition
In today’s competitive business landscape, it’s more important than ever to find ways to separate yourself from your competitors.
Offering loyalty rewards is a great way to do just that. By showing your customers that you value their business, you’ll be one step ahead of the competition.
It Drives Repeat Business
The whole point of loyalty marketing is to drive repeat business.
And there’s no better way to do that than by offering loyalty rewards. When customers know that they’ll be rewarded for their loyalty, they’re much more likely to continue doing business with you.
Not to mention, they’re also likely to spend more money with you over time.
It Increases Customer Lifetime Value
Loyalty marketing can help increase your customers’ lifetime value. Lifetime value is the total amount of money that a customer will spend with your company over the course of their lifetime.
The higher your customers’ lifetime value, the more profit your business will generate. This is a crucial metric to consider, as it can play a large role in how much revenue your business is able to generate in the future. So, be sure that you keep this in mind when you’re developing a loyalty marketing strategy later on.
How Do I Get Started With Loyalty Marketing?
Using professional services is one of the best ways to get started with loyalty marketing.
This will help you automate the process and make it easier to keep track of your customers’ loyalty rewards. You could also offer a discount to customers who make a purchase within a certain time frame.
For example, you could offer a 10% discount to customers who make a purchase within the next month. Consider offering loyalty points that can be redeemed for discounts or freebies. For every $100 a customer spends, they could earn one point, for example.
Once they’ve accumulated enough points, they could redeem them for a discount on their next purchase.
Finally, make sure you track your results so you can see how effective your loyalty marketing strategy is.
Keep track of things like customer attrition rate, customer lifetime value, and repeat purchase rate. By tracking your results, you’ll be able to fine-tune your strategy and make it even more effective.
What Should I Look For in a Provider?
Taking a look at their past reputation will help ensure you find someone right for you. It’s essential that you consider what previous clients have had to say. This will help you substantially when it comes to making a decision.
Industry experience is another factor that you should consider. Unfortunately, it’s not uncommon for people to overlook this factor.
Fortunately, reputable companies are proud to showcase their expertise. If they haven’t worked with people like you before, it’s best to steer clear of them.
It’s essential that you hire someone who understands your needs. Their billing structure is another important element to consider.
From here, you’ll know whether you need to adjust your budget. Are you able to easily communicate with them?
If they seem to brush off your concerns, they aren’t the right choice for you.
Loyalty Marketing Doesn’t Have to Be Complicated
Although it might seem difficult to understand at first, developing a loyalty marketing strategy is much easier with the right provider in place.
Just be sure you consider the above information so you can develop a strategy that is as effective as possible. Want to learn more about how Kobie can help? Be sure to reach out to us today.