Do you currently have a customer loyalty program in place? Odds are, it’s increased your profit margin, if it’s a good program.Customer loyalty programs not only create repeat customers, they generate new word-of-mouth & social media referral customers. So if you haven’t implemented a customer loyalty program yet, here’s a look at how, what and why your should do so.
The potential referral base loyal customers may send your way is huge, so getting to know them pretty well is important. The stronger they feel their connection is to you, the more likely they are to refer friends and family to you. Let’s examine some of the ways you can strengthen your contact via customer loyalty programs.
- Keep good Information history on loyal customers. Many people cite the reason they return to the same provider/supplier is indeed based upon quality/value of service, but also because it avoid starting fresh with a new provider. Translation: no repeat hassle of filling out paperwork and documentation from Square One, all over again.
While building your knowledge base about your customers, as their ranks increase it’s easy to lose track of what you spoke with certain ones about the last time you interacted, or what their kids’ names are, etc..But such details are part of what helps demonstrate that you know your customers far better than your competition. When they perceive that personal connection as well as great services and products, that establishes loyalty..
Take a few notes to help you keep track of some key facts. When you show them you’re interested in them personally, their trust in you and loyalty toward your business grows. Once they see that you go the extra mile and care about them as a person, not just the dollar signs their business represents, they’ll be back. Keeping track of special occasions such as their birthday in your database, then sending them a special offer for that day is an excellent show of personal interest.
Customer Satisfaction Surveys
Using customer satisfaction surveys provides great insight into your customers’ preferences, as well as expanding your personal knowledge about them. So use such surveys to ask key questions to elicit feedback about your products/services, but don’t forget to throw in a few personally oriented questions as well.
- If you discover many customers are most interested in saving money, then your customer loyalty program should naturally be dollar-related.
- If they are more motivated by personal attention, you’ll want to gear your program more toward that direction.
Tailoring Your Customer Loyalty Programs to Reach Your Goals
Make sure your customer loyalty programs are not more expensive than they’re worth. In other words, the bottom line of such programs is to increase your profitability. Any time you bend over backward too far in order to keep a customer, it’s normally not worth it in the long run.
Devise customer loyalty programs which don’t cost more than you gain by holding onto particular customers. You can do this by coming up with some low-cost strategies which keep them engaged, and periodically throw in a few that are higher cost for the higher income end of your customer spectrum. For example, you could offer a free product or service after so many purchases more regularly than you could hold a contest that gives away airfare to some desirable destination, right? But mixing it up periodically will help you maintain the interest and business of all income ranges
Never forget that you’re offering an extremely valuable service or product. You should never feel the need to “bribe” your customers to interact with you or use your services in the future. If you do, you’re encouraging the type of relationship that always ends up the same – the customer goes to whomever is offering the biggest bribe/incentive in the moment, so the loyalty factor is nonexistent. When YOU value what you have to offer, your customers follow suit.
Showing appreciation of customers continued support through well-designed loyalty programs lets them know you value them. Rewarding them secures their repeat business, and helps them feel they’re receiving something in return for their continued loyalty.