If you are looking forward to be successful in growing your business, give proper consideration to implementing customer loyalty program or offering regular giveaways. There are several benefits to rewarding customers and they are not just meant to prevent customers from accepting knocks of competitors.
Here are the 5 significant reasons why rewarding customers to keep them is a crucial marketing strategy for the success of the business:
Because it helps strengthen customer relationship.
Although the rewards program will not actually affect the quality of the products or services, yet it can make the customers happy, thus strengthen the relationship.
It will convey a sincere message to the client that you are not only about gaining profits from their purchases, but also about rapport and good relationship with customers.
The rewards you extend to them are an act of goodwill that will improve the customers’ outlook of your business and will then boost the success of the business.
Because it earns the loyalty of customers.
As loyalty of customers is earned, it also boosts the profitability of the business.
Loyal customers buy frequently, and this is an assurance of stable cash flow. In addition to that, they are also the company’s most powerful endorser as they pass the products on to their family and friends.
As you continue to give importance to your loyal customers through the rewards, they will also stay for long, even longer, despite some untoward incidences.
It increases sales.
The rewards program encourages and attracts loyal customers to do more purchases. Because of this, the company should implement customer loyalty program that satisfies the customers.
If the rewards are in tune with what they want, there is a higher potential that they will purchase more at a given time. This will increase the success and the profit of the business, as well.
It boosts the company’s reputation.
When you implement your customer loyalty program through rewards, it actually serves your company with dual functions. Its first function is to give customers incentive or rewards so that they will stay and stick around for a longer period of time.
The next function is to ensure that the customers know that they are of great value to the company. Customers will feel important, and in turn, they will appreciate the importance and recommend the brand to others. This will boost the company’s reputation to a higher level.
It helps improve stock selection and product range.
As you learn what your customer needs and frequently buy, and what products from rewards that satisfy them, you will be able to improve your company’s stock selection and product range. You will also be able to eliminate those products that loyal customers do not purchase.
Over a period of time, it will increase the sales and grow the business. The rewards program will also increase the company’s awareness of the products or services that the customers look for from competitors and this information will help the company improve its merchandising and store planning.
How do we engage past and present customers to keep doing business with us? How do we persuade them to make another purchase, or at the very least consider us the next time they’re prepared to buy?
Regardless of the niche of your business, engagement goes a very long way.
A simple ‘thank you’ often has a lot more benefits than actual incentives. Here’s what you need to do to preserve engagement levels with your customers.
How to Thank Your Customers
1. Write your customers a personalized note.
Have you ever thought of going old-school on your customers? “Thank you” notes delivered through their physical mailbox can be a great way to engage them.
It’s surprising and fun if you do it right.
As a business person, one of your biggest accomplishments is to see that your customers are happy; because happy customers react.
When was the last time you got a handwritten “thank you” card from someone?
When sending notes to customers, make sure you send them to the right group of people. This is where technology comes in. Segment your target audience by age, job, and personal preferences.
Then answer yourself the following questions:
- What did they buy from you and your business?
- When did they buy?
- How many purchases did they make?
These sorts of questions will help you send your customers the best “thank you notes”.
Write them something they can relate to, and use words from the heart. This will help maximize the impact, and they’ll be deeply moved by the fact that you used an old-fashioned technique to reach them.
In a world of email and online orders, getting something is the mailbox is something extremely touching.
2. Invite your customers to an event.
Inviting customers to an event hosted by your company is a great way to thank them for appreciating your company.
Set up an exclusive event, and make sure to send them personalized invites.
A black-tie cocktail party, for example, is a great way to engage with customers, socialize, and collect feedback. Don’t make the event too sales, and focus on building relationships.
Customers appreciate companies that are humane; that caters and listens to their needs. Set yourself apart from your competition, and set up an event they can remember.
3. Wow them with unexpected incentives.
Whether we’re talking about discounts, coupon codes, or email content, it’s very important to nurture your customers.
The best incentives should be offered when the customer expects them the least. It doesn’t have to be Christmas to showcase your appreciation. Pick a day and just give them something they want.
Set up a flash sale with an 80% discount on one of your best products. Craft a beautiful, qualitative email and mention that it’s an exclusive offer. Make sure the content is qualitative and don’t trick them in any way.
Honesty goes a very long way when it comes to grabbing people’s attention.
If you can’t afford to spend a lot of money, a free, exclusive e-book should do the trick. Provide valuable information they can use, and they’ll be eager to find out more.
4. Loyalty programs.
A VIP rewards program will make your customers feel special. They’ll feel special and appreciated, therefore they’ll be more than eager to sign up for the program.
You don’t have to craft the most complex rewards program. As long as you have something to offer them (something they don’t normally have access to), their interest to stick around with remain intact.
In fact, they might even spread the word and tell other people about the way they feel when doing business with you.
Encouraging customers to keep buying what you’re selling is not rocket science. In today’s cut throat business environment, the key to excellent customer service is customer care.
Look after their needs and wants outside holiday season, and always make sure to thank them for their support.
Branded corporate gifts are also a good idea, but your idea of a gift has to be personalized. It has to entice and grab attention, so that your incentive becomes memorable in the eyes of the customer.
Little by little your brand’s awareness will increase, and people will want to know more about your brand and business. All you need to do is say “thank you” more often.
About The Author
This is a guest post by Maxwell Donovan.