How to retain a customer when competitors are coming closer and closer, customers neglect your offers, and do not want to buy? Introduce a loyalty program! It will also help create added value.
By and large, customer loyalty is a value that all companies striving for success aspire to. A good customer base is more likely to keep your business afloat in good times and bad.
As a result, all business owners need to consider implementing some kind of loyalty program designed to reward loyal customers for their support. A good example would be turning to the Exness Bonus & Rewards program which includes all the best features of this approach.
Still, doubting? Check out the next tips!
Main Business Problems
No business can live without issues. Some face them at the initial stage of launching the product while others come across them at the more advanced level. Here are the most common business problems:
- No core of regular customers;
- The low consumption level of goods and services;
- Buyers’ outflow;
- Customers don’t come back;
- Decrease in sales;
- New customers aren’t attracted;
- Low brand awareness;
- No ability to build a customer-centric approach to business;
- No collection of information about customers, store occupancy, and product needs.
Do these obstacles seem familiar to you? Want to upgrade your project? Find the right solution below!
Possible Solutions
After trying a great variety of solutions, as a rule, sooner or later, greedy business owners come to one and (for the major types of projects) only right way out of this problem – launching a loyalty program.
It’s possible that many of the marketing efforts and resources going into customer acquisition efforts could have been saved. The only wise step would be to focus more on customer retention + loyalty and learn to identify customer loyalty signals that prove ROI.
While customer retention is one measure of customer loyalty, it doesn’t guarantee that your customer loyalty marketing strategy is actually working.
That’s why we want to offer you five customer loyalty signals you should be looking for as proof that your loyalty marketing plan is well worth it.
#1. Retain existing customers
Loyal consumers spend on average 67% more than new ones. This is a metric that cannot be ignored. At the same time, attracting customers can cost you at least five times more than retaining existing ones. Apply this mindset to your business and you will see the positive impact it can have.
The main benefit of loyalty programs is that you can do more so customers come back and spend more. As you start converting existing customers to loyal customers, you will see how the importance of customer loyalty management manifests itself in the long term.
#2. Increasing the customer’s life value
Customer Lifetime Value (CLV or CLTV) is the net profit attributable to the overall relationship you maintain with the customer. It tracks how valuable the customer is to you now – and how much that ongoing connection will cost in the future.
Why is it important? Well, the numbers show that you will see most of that 365-day “value” in just 30 days. Two-thirds of this volume was sold only on the first day, and by three months this figure will grow to 79%.
The advantage of a customer loyalty program is that you have data on a person’s unique buying habits. This means you can reward them every step of the way and also increase your CLV.
#3. Build personal relationships
Creating that emotional connection and making your customers feel loyal to your brand will show you how much you value them. At Exness, we are confident that you can achieve this by building a genuine relationship.
Your customers are unique – so treat them differently.
#4. Satisfied buyers
When was the last time you actually took any measurement when it comes to customer satisfaction? Companies that are serious about customer loyalty marketing need to be obsessed with customer satisfaction, and they need to find ways to measure and track that over time, with new programs and product launches, changes in customer experience, and more.
#5. Brand awareness
Brand awareness is one of the keys to a shopper’s purchasing decision. Markets are crowded and extremely competitive, so customers are more likely to stick with a brand they know.
Previous and current market volatility has made price an important factor in shopping, which has created a market gap for those businesses that return to their customers, allowing them to stand out more from the crowd.
Customers talk, and companies should never underestimate the power of recommendations. If a consumer receives a large cashback or discount from your loyalty program, chances are they will share this information with their friends and family, which will automatically increase brand awareness.
Why Loyalty Should Be Rewarded
We know that money doesn’t always flow freely for small businesses. Important decisions need to be made about where to focus your investment. Should you focus on attracting new customers? Or make sure existing ones come back over and over again? Retention is often proven to be a more effective way to grow a business. And customer loyalty is a big part of that.
Be sure to focus on customer acquisition or customer retention. Remember, existing (and returning) customers matter. 75% of customers say they would change their beloved brand to improve their loyalty program.
Therefore, give this business-improving solution a try!
