LOYALTY MARKETING- STRATEGIES TO RETAIN CUSTOMERS
Building a sustainable strategy is essential to focus on both new and existing customers. Digital marketing efforts, websites, active social media accounts are usually more focused on monitoring lead generation, conversion rates and optimized for new customers to make a purchase. It is important to note that existing customers can be included in this strategy through loyalty marketing.
WHAT IS LOYALTY MARKETING?
The focal point of loyalty marketing is retaining existing and past customers with initiatives and incentives. Loyalty marketing, essentially, is a strategy that encourages customers to do repeat business with an organization. The central tenets of these strategies involve incentivizing purchases and building up customer loyalty.
CUSTOMER LOYALTY & CUSTOMER RETENTION
According to the Gartner group’s global research on customer loyalty, 80% of a company’s future revenue will come from just 20% of its existing customers. However, customer loyalty is tricky as customers are not bound to buy from one company or brand. A customer might suddenly change his mind and skip to another brand for different reasons.
STRATEGIES TO RETAIN CUSTOMERS
Specific customer loyalty marketing strategies can be used to make sure customers remain loyal. Some of the essential points are listed below:
Soliciting customer feedback
Minimize the detraction rate: It is essential to understand why customers are leaving or staying. Obtaining their feedback is crucial to understand this and can be collected using social media, customer satisfaction surveys and requesting reviews.
Incentivizing repeat business with reward programs
Loyalty is dynamic. It is important to keep giving customers a reason to come back. Initiating a loyalty reward program is one of the best ways to draw customers back. The key to a successful loyalty program is to make the customer feel very special. Birthday deals, executive promos, free classes, etc., make customers feel that they have earned something extraordinary with a particular brand. Reward programs help to keep the churn rate low.
Celebrating the most loyal customers on social media
Social media platforms provide a great way to encourage customer interactions through user-generated content. Giveaways and contests on social media incentivize customers to interact with the brand and promote it through their networks.
Referral programs are the bridge between retaining existing customers through loyalty marketing and acquiring new customers. Customers who like a brand have the natural tendency to share their preferences with their friends through word of mouth. Referral programs encourage this behavior with incentives for both the advocate and the referred friend.
Loyalty marketing is about valuing customers by acknowledging them and appreciating them for their support. Data Direct can help grow your business through curated loyalty marketing strategies.