Reward and Loyalty: Rewarding Loyal Customers
- by Career Moves PR, Marketing & Digital
- 4 Feb 2019
Building a positive relationship with customers is key to generating sale on sales, from a single acquisition cost. Reinvesting in customers who are loyal to a brand increases a customer’s positive experience, satisfaction and their relationship with the company.
In today’s digital dimension, loyal customers can grow business sales faster than marketing through repeated purchases and endorsement on social media. Brands that provide great customer service benefit from subscription and social media marketing from loyal customers.
Attracting happy customers, and creating loyal relationships should be a core motivator for most product and services companies. These customers will convert others to the brand and spend more with the company once they have built the relationship, being responsive to their customers through offering rewards for their loyalty will help drive free referrals.
Investing in those who will tell family, friends, and social media followers about their positive experiences is a fantastic means to spreading the positives about your company. Building a customer loyalty program to reward customers who frequently make purchases can grow their customer acquisition through a decreased cost.
Simple points approach
A simple points system approach, such as Boots cards, Nectar cards, and Clubcards are easy approaches to encourage frequent, short-term purchases, this method is ideal for consumer goods that require replacing on a regular to semi-regular approach with quick win-able rewards.
The tiered system is designed to show short and long term values from brand loyalty. When presented with tiering, customers can strike a balance between attainable and elite rewards within the program. The tiered system rewards initial loyalty whilst not becoming an inadvertent hindrance to the customers’ spending habits.
This system also encourages repeat customers through increasing the value of the rewards as the customer moves up the loyalty ladder. This offers the customer more freedom through their loyalty program to achieve their status.
The staggered nature of a tiered system naturally lends itself to higher price-point with higher levels of commitment and larger rewards.
Upfront Fee for VIP benefits
Businesses that thrive on repeated, frequent purchases can reduce delivery costs for their customers. Through bypassing common barriers during the customers’ decision making process, businesses can increase sales.
Pre-empting factors that cause customers to leave before purchase can carry a deal through as the customer’s hesitation is taken away before the next shop
Structure Non-Monetary Rewards
Offering non-monetary rewards, such as a gift or event day, can be an additional opportunity for your branding to be shared online through the participants endorsing the event online. When executed successfully, new customers will witness the additional benefits that come from being a part of the brand’s loyalty program and can then be acquired.
Partnering with a non-competing brand that delivers to the same demographic can be a fantastic means to further create sales. When choosing a partnership, such as a clothing brand and a gym, or make-up and a perfume, it is important to understand the values and ethos of the company in order to echo the brand’s marketing within your own.
Return the Loyalty
Previously the market witnessed how businesses onboarded new customers with bright and fantastic offers, subsequently accosting the loyalty from their existing base. Now, brands realise that reinvesting in those already loyal to you, and promising the same deal you would to those you’re trying to attract goes a much further way, with a steady increase in sales, as opposed to a fluctuation, matched by an inconsistent promotional method.
Build a Community
Building a community between loyal customers places your brand in a strong position. A community can be an easy means to generate a conversation about a product or service, generate social media shares, and increase product suggestion within an easily monitored space.
Trial New Products
Suggesting products that complement your customer’s current basket can help them find a diamond to add to their collection. These complementary suggestions need to be considered and angled towards items/services already existent within their category to build a trusted relationship and increase customer loyalty.
After a customer has been loyal for a prolonged period of time, it is important to continue to reward these individuals in order to retain their business. Offering a once off discounted subscription within a set time period can create an urgency around the deal, and encourage their loyalty for another extended period of time. This is also an opportunity to implement an Net Promoter Score to further increase customer acquisition.