Consumer behaviour is constantly changing and adapting to the times. In the last year and a half, customers began to rely on online shopping after stores closed across the US. Customer retention became more critical than ever with so many brands dealing with financial difficulties.
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Customer retention refers to how many of your customers are loyal to your company and product. These customers will make repeat purchases and invest in your company values, products, and loyalty schemes. Loyalty programmes come in all shapes and sizes – whether it’s points systems or quick and easy customer discounts.
Acquiring new customers costs time, resources, and a lot of money. It can cost up to seven times more to acquire a new customer than it does to retain an existing one. Brands need to focus on keeping their existing customer base and building a solid relationship with those consumers.
Businesses are currently finding success with digitising loyalty schemes to retain their existing customers. Say goodbye to store cards and loyalty stamps, and hello to an all-new digital process. Digital loyalty schemes can help brands engage with their consumers regularly through newsletters, email marketing, and social media. Brands can use social media to run giveaways, one-off customer discounts and competitions to keep their customer base engaged and interested in their products.
Social consciousness is an area many brands need to improve on and is an integral part of connecting with customers on a deeper level. Brands need to address challenges of social justice, climate change, global events and much more. It’s also important for businesses to review their loyalty schemes and identify areas for improvement. The younger generation, particularly Gen-Z, is increasingly looking to invest in brands that support their values and purchase needs.
Loyalty programmes should be designed to improve a brand’s customer loyalty. However, you need to understand your target demographic and the products they are looking for to do this.
Your loyalty programme should make your customers feel valued so that they continue to make purchases from your brand. Repeat customers are likely to spend 67% more than first-time buyers. Your loyalty programme should encourage repeat purchases through a discount system or a points-based process. Remember to keep it simple so customers can easily access their loyalty perks without putting in extra work.
A well-designed loyalty programme will encourage customers to spend more. Frequents sales or member discounts are a great way to prompt the customer to buy something. Keep the discounts under the 20% mark so that your loyal customers are getting a good deal and you are still making cash.
Do your research, design a bespoke loyalty programme for your company and build a fantastic customer base!