When it comes to retaining the existing customers, it is far cheaper than looking for new ones. Most successful businesses believe that it’s all about utilizing the resources your already have than looking for new ones. Although you should always look to expand, never underestimate existing clients.
There are plenty of plans and strategies that can work, but we are going to talk just about the Loyalty Marketing Programs here. These are the most influential reason why a customer should stay with your business.
What are loyalty marketing programs?
You can include anything from discounts, cash backs to allowances and gifts on consecutive deal with the business. In simpler language, it is a token of appreciation to motivate people for purchasing something from your business again.
Departmental loyalty cards are the best examples of these programs where card holders get monthly points for grocery shopping.
Are these programs for every business?
Loyalty marketing programs have penetrated businesses beyond departmental stores a long ago. Today, almost every company defines a plan where they look to reward loyal customers. In fact, Honda Motors has recently launched $500 discount for existing customers. Even Apple has increased discounts for people who buy from the brand often.
What is a sound loyalty campaign?
Just like any other business activity, it all comes down to figures. How much do you spend? What do you expect in return? What will be the cost per sale? Will you be able to extend the offers? Answer these questions way in advance for better results. Talk to marketing and finance department about it first.
You can choose anything from premiums to prizes and points to trade cards. Just make sure that existing customer get benefits that overpowers the wish to try anything else. Keep them satisfied with the deals and discounts that you have to offer.