Warning: Your Business is Losing Money by Not Using A Customer Loyalty Program
After working so hard to obtain a customer or make that one sale that puts you at or above your quota, what are you doing to maintain that customer’s support and backing? Today, only about 28% of consumers are loyal to their providers and brands. While most eCommerce websites these days have customer loyalty programs in place, if they aren’t generating anymore sales than before, there might be some tweaking that needs to be done to ensure the program is strategic in keeping that customer and making sure your business is giving them something to get excited about.
eCommerce has become a primary platform for sales today behind big box retailers. Customer loyalty programs are almost crucial to keep that source of revenue flowing into your business and not lose it to the competitor that has a loyalty program already in place. Maybe you offer a “refer a friend, get $10” program, or something discount or point based. Once put into place, tracking those systems to see if customers are partaking in the programs will give you more leeway to see what your customers want and what their buying behaviors are.
It’s a Buyers World
This day and age we can pick and choose exactly what we want based on how eager we are to get it and if we don’t like that experience, it’s on to the next place or product. It’s hardly the case anymore to only have one option to choose from. The first step is having a customer loyalty program in place to ensure to them that you value them as a customer. The second is to be strategic in knowing you’re providing something that they will actually want to partake in.
“38% of marketers say their biggest challenge in 2015 is improving customer acquisition and retention,” according to a study from TeraData.
5 Types of Customer Loyalty Programs
There are a lot of ways to show customers you are thankful for their business. Here are five types that have proven effective and are easy to implement:
- Refer a Friend Program: If a customer loves your product or business, they will most likely want to share it with their friends, but will be much more eager to if they are enticed with a discount or credit value.
- Exclusive Offers: For some reason, when we feel like we are a part of an exclusive club, we feel special. By giving your customer the feeling of “This is just for you,” it makes them feel that their purchase is legitimate and less frivolous.
- Frequency/Points Program: Whether it’s a “Buy 10, Get 1 Free” deal, or a system that haves them work up to a certain amount of points, the customer is working up to something that will reward them.
- Rebate or Cash Back Offers: This incentivizes the customer because they will feel like they will see money in the future, and it makes the product or service seem less expensive upfront.
- VIP Memberships & Upgrades: Offering customers premium memberships or services will make the feel like they are valuable to you. Extend something that they will see benefits from, like faster shipping or discount codes.
How To Measure the Progress
Once you have your customer loyalty program in place, promote it, and track for three weeks to a month then measure results. This can be done by installing a tracking pixel, via Google analytics, or the discount code that is used depending on your program. The testing should be targeting existing customers that have previously purchased and will benefit from your customer loyalty program. A true “Thank you for sticking with us,” not “Thanks for your money,” gesture.
Find A Program That Works and Stick To It
After testing and tracking to see if your businesses customer loyalty program is working and generating sales, be loyal to the program! The sales will tell whether it’s something your customers see worthy or not. Conduct surveys, or ask for feedback on whether or not the program is deemed respectable. Getting involved with your customers will only make your relationship with them stronger and less robotic.
Engaged customers are four times more likely to say they “appreciate when this brand reaches out to me” and seven times more likely to “always respond to the brand’s promotional offers.” (Rosetta)
The act of engaging with your customers and letting them know they are valued is key to keeping sales, especially if your business or product is something that requires sporadic use. If you would like to learn more about how to obtain a customer loyalty program, or how to improve one that’s already in place, contact a member of our web marketing team today!