“It costs 6-7 times more for a company to obtain a new customer vs retaining an existing one.” *Bain & Co
Getting new clients & customers is tough. Not only is it expensive as noted above, but it can also be extremely challenging and time consuming to gain enough trust to get that first “yes”.
Once you’ve made the investments to get them onboard, it would be foolish to ignore the importance of keeping them coming back. Not only is repeat business considerably less expensive, but studies show that current clients & customers spend 67% more on average than new customers.
Taking this a step further, you can receive exponential business growth and revenue from the referrals that your existing clients & customers may bring you.
“Increasing customer retention rates by 5% increases profits by 25% to 95%” *Bain & Co
Bottom line, keeping your customers happy and coming back can contribute tremendously towards the success of your business.
But if you’re like most business owners, implementing a system to do this can be costly and challenging to implement.
When The Solution Is Simple, God Is Answering.” * Albert Einstein
One of the easiest ways to increase the retention rate of your customers is with a loyalty or VIP program. In fact, 73 percent of consumers believe loyalty programs should be a way for brands to show loyalty to customers.
Loyalty programs are a great way to create deeper bonds with your customers and make you the natural choice for future business.
This all sounds great but perhaps easier said than done.
Among the best ways to implement a loyalty program in today’s environment is with either an app or chatbot.
“57% percent of consumers want to engage with loyalty programs via mobile devices” -Bondco
While there are numerous loyalty solutions available today, many are very expensive and often sell you on components you really don’t need as a means to justify the price tag.
Well? Which one’s do you want?
Here’s a breakdown of some features you should consider when your ready to jump on the loyalty marketing bandwagon.
Let’s Make A Deal!
One of the best ways to get folks into your business the first time is by offering a deal or discount. Make sure your solution is capable of delivering these and your customers can easily make use of them. A simple incentive can get folks mobilized to begin a relationship with you that can last far into the future.
Book ’em Danno
Convenience is key these days. The easier it is for folks to do business with you the better. Solutions that offer the ability to order online or book reservations to dine in are excellent. Your customers have easy access to the lazy route of getting what they want and you get more repeat business. Win win!
Push It Real Good
Out of sight out of mind so they say. Being able to send messages to your VIP members is a great way to re-engage with them and increase sales. How bout sending out a message with one of those offers we mentioned during a slow period?
If your solution has the ability to segment your members, all the better. Perhaps you only want to send out an offer to people that haven’t purchased in a while… Or folks that would likely be more interested in a particular promotion. The opportunities can be endless.
Chat Em Up
While we’re on the subject of communicating with your VIP members, solutions that offer the ability to chat can really boost your revenue. Whether it’s answering questions about a specific product or service, or being able to give directions and share your latest specials, the ability to chat and engage with your members can foster a great experience.
Sold to the Man in the Blue Dress
Once members are in your VIP club, you’ll likely want to increase the frequency of purchases that they make. A great way to achieve this is to create special offers that are available for them to use as they please. Perhaps you send them a message to let them know they have a 20% off gift code waiting for them when they’re ready. Perhaps it expires each month to keep them coming in and new ones come out each month? These are just a few options you may wish to consider.
The Royal Loyal
What would a loyalty program be without the ability to reward members based on activity? What about if you could send them offers based on their spend instead of the frequency of their visits? That way someone hat comes in for a full meal with a party of 4 would be rewarded more than someone that has a beer at the bar with an appetizer a couple of times.
A great strategy to further increase engagement is to create tiers within your loyalty program. For example, silver members get 10% off of product “X” and gold members get 10% off product “Y”. There’s a million ways to slice it up but what’s important is that by creating tiers, you keep people coming back for special treatment and you also give folks a reason to come back more often to reach the next tier.
Bet Your Bottom Dollar
With reduced cost per sale, increased customer frequency & spending habits, and increased emotional connection & bonding, implementing a loyalty program can be extremely rewarding for your business.
Want to learn more? Click the button below now for a complimentary, no obligation consultation.