Loyalty.
This is what you expect from your beloved pet and your paying customers.
In terms of the first, I am no expert, but in terms of creating a loyalty program that grows your business, I have some insights to share with you.
Let's take a closer look at how to attract loyal customers before discussing loyalty programs.
In order to achieve their goals, customers will stay loyal to companies that help them achieve them. A competitor with a better offer can still win them over even if they have a positive history with your brand. It's because of this that customer loyalty isn't easy to earn or even guaranteed - these steps will help you build a loyal following.
Being in tune with your customers' needs is the first step toward building customer loyalty. Multi-channel service systems are the best way to connect with your customers, especially when they need assistance. As a result, your service team will have more access to your customers, creating more interactions with them, and the more interactions you have with them, the more likely you are to be able to influence their experience.
With multiple channels, you can also provide omnichannel experiences, where customers have a consistent experience across channels, platforms, and devices. In turn, this increases customer satisfaction, since your customer service is more accessible, which is exactly what you want for frustrated customers.
Help desk and live chat tools can help your customer service team cover multiple channels. In smaller teams, AI software like chatbots can reduce the workload of organizing and distributing incoming requests without hiring additional staff.
Providing exceptional service does not mean giving away free products, discounts, and perks. In fact, it's quite the opposite. Free samples are not what customers want. They want solutions to their problems. The problem cannot be solved with giveaways and discounts.
Challenge your team instead to listen to what the customer says and process their feedback. Most customers will be happier with a solution than with a replacement or perk - although they can help sweeten the deal.
There is a time and place for scoping out your competitors, but doing so doesn't always yield the same results, since mirroring them won't guarantee the same results. Knowing what your competitors do, and being more creative than them, is the key to being the best in your customers' eyes.
Several small decisions add up to big gains in customer loyalty. Therefore, your success is not dependent on one breakthrough. Customer interactions, product purchases, and referrals contribute to brand loyalty every day.
If the grass seems greener on the other side, it's probably watered by a different sprinkler.
Consistency is the key to the success of franchises like McDonald's. No matter where they are in the world, customers know what to expect from these businesses. Here's why that's a contributing factor to customer loyalty on the surface.
Customers can easily incorporate brands into their lives when they provide consistency through their products and services. Imagine you want ice cream, and all you can think about is your favorite cone from McDonald's. Count on them to be open and deliver exactly what you want. You'll begin to trust it after enough visits, since it's proven time and time again to deliver on its promise (and ice cream!).
Almost three out of five consumers report that good customer service contributes to brand loyalty. A further 76% of customers say they would stop doing business with a company after a bad experience.
Every business makes mistakes, but the key to retaining customers is acknowledging mistakes and correcting them when they happen.
Loyal customers expect a positive experience from your brand every time they interact with it. They want to feel like you value them as much — if not more — than they value you. If they sense their business isn't appreciated, you might lose them to competitors.
CRMs can be useful here since they record past experiences with your brand. In addition to email and phone messages, it stores customized notes that provide specific information about a customer. Employees can leverage historical data regarding past customer interactions to create a more personalized experience.
You're not the only one vying for your customers' attention - your competitors are as well. It is everyone's goal to demonstrate to their customers that they can best fulfill their needs. What can you do to edge them out? Make sure you go above and beyond their expectations.
According to research, one in four customers will pay 10% more in almost every industry if they are guaranteed a good experience. In addition to offering a loyalty program - which we'll discuss soon - you can demonstrate this by building a relationship with your customers that extends beyond the moment of purchase.
One way that your company can add value to the customer experience is to host events or contests that your target audience would be interested in. For example, the energy drink brand, Red Bull, has built a massive customer following by sponsoring extreme sporting events and teams.
Creating a customer community is another way to add value. A knowledge base or ideas forum could be simple, or it could be complex and include a loyal network.
Let's take Harley Davidson as an example. A community of brand evangelists advocate for Harley Davidson at dealerships across the country. As a result of these communities, customers feel like they're part of an exclusive in-crowd.
Why not let people know when you're generating positive customer experiences? Inform others about your company's benefits by gathering customer feedback and sharing reviews. In order to maximize customer value, it's important to leverage positive interactions with other customers more than your advertising.
Third-party review sites like Yelp give you access to a lot of customer feedback in one place if you're unsure where to find it. To gather qualitative information about your brand, you could also use NPS® and other feedback tools or ask your customers to submit testimonials.
The most valuable customers for your business are those who are loyal to your brand. Customers who have an emotional connection to your brand tend to have a higher lifetime value. To build customer loyalty, you need to reward these customers for spending more with your business.
Customer loyalty programs reward customers for their continuous purchases with your business.
You can offer rewards such as free products, early access to new products or events, point systems, awards, exclusive merchandise, whatever you want to show your appreciation.
Loyal customers are 68% more likely to join a loyalty program if they're offered rewards and unique offers. In these programs, customers receive benefits for their business, which leads them to spend more money. Why not give them another reason to buy from your company?
The simple answer to that question would be that offering incentives without receiving anything in return is too expensive. When you examine individual purchases, this appears to be true. Loyalty programs, however, benefit your business in more ways than one or two transactions.
If you're wondering whether customer loyalty programs are cost-effective, here are some key advantages. Firstly, let's take a moment to discuss platforms that make rewarding your clients simple.
With Xoxoday Plum, businesses can engage and retain their customers through personalized reward programs. Businesses can create and manage reward campaigns tailored to their specific customer base easily with Xoxoday Plum, offering both meaningful and relevant rewards.
Yotpo is an incentive marketing platform that helps you build a custom loyalty program, whether tier-based, a point system, or referrals, to engage your existing customers and reach new ones.
Using LoyaltyLion, you can create a loyalty program that makes your customers feel valued, rather than just another number. Whether you're re-engaging at-risk customers or thanking loyal ones, you can customize a program based on points, rewards, and tiers that customers can access anywhere.
The next step is to discuss the importance of customer loyalty programs for businesses.
Building a customer loyalty program and rewarding customers with additional, exclusive benefits is beneficial to all businesses. Perhaps you're already a member of a frequent flier program or a referral bonus program.
You can differentiate yourself from your competitors and keep your customers loyal with loyalty programs in an increasingly competitive and crowded market. Although loyal customers are more likely to make repeat purchases, that's not the only reason to start a loyalty program. Here are some benefits of a customer loyalty program for your business.
Nowadays, customers make purchase decisions based on more than just price. Shared values, engagement, and emotional connections with a brand influence their buying decisions. The purpose of customer loyalty programs is to engage customers beyond the point of purchase, to interface on shared values, and to provide even more value to the customer, making them happier and more likely to purchase from you again. You can also work with customers on recurring exchanges. With home service companies, you could set up a monthly or weekly maintenance plan with homeowners. As a result, the customer is engaged and enrolled repeatedly.
And 88% of customers that feel appreciated plan to stay loyal to brands, and 83% plan to spend more.
Your customers will tell their friends and family about your customer loyalty program if they enjoy its benefits. Word-of-mouth marketing attracts new customers with no acquisition costs and can increase revenue for your company. Word-of-mouth marketing drives $6 trillion in annual consumer spending, and 90% of people trust and buy from brands recommended by friends.
It's more cost-effective for your business to retain happy customers than acquire new ones. Acquiring a new customer is 5-25X more expensive than retaining a current one.
Customer reviews online are almost as trustworthy as recommendations from friends and family. Authentic user-generated content will result from customer loyalty programs that encourage reviews and ratings on websites and social media.
Now that you understand the importance of customer loyalty programs, how do you get started? Here's how to create a loyalty program.
Choosing a great name is the first step to a successful customer loyalty program. Customer participation should be sparked by curiosity and interest. Your loyalty program must be distinguishable from the many other loyalty programs they might already belong to.
In addition to explaining that customers will receive a discount or rewards, the name should entice them to join.
Some of my favorite customer loyalty program names include beauty brand Sephora's Beauty INSIDER program and vegan supplement brand Vega's Rad(ish) Rewards. These clever, unique names hint at benefits but don't give them away — making customers curious to learn more and join.
Some customers are cynical about customer loyalty programs, thinking they're just a way to get them to spend more. It should be about more than just money, even if that's one of your goals.
You can make your customer loyalty program more compelling by tapping into the "why" behind your product or service.
Briogeo is a customizable hair care product line. With just a few answers to a quiz, customers will have a shampoo and conditioner crafted just for their hair on their doorstep.
The company's rewards program is just as customer-centric as its product. Each $1 customers spend earns them three points toward a savings discount on their next purchase. Customers know that this loyalty program gets them closer to even more affordable hair care products with no frills or distractions. It's a win-win.
Is there another way to demonstrate your commitment to customer loyalty beyond just purchases? Customers who do not purchase should be rewarded for their actions.
Customers watching product videos, engaging in your mobile app, sharing social media content, and subscribing to your blog are still valuable signs that a customer is engaging with your brand — so reward them for it.
Providing more value to your customers doesn't have to involve discounts.
When you spend a certain amount or earn enough loyalty points, you can redeem them for free tickets to events or entertainment, free subscriptions to additional products and services, or even donations to a charity of your choice.
In this regard, Lyft's LyftUp program does an excellent job. While using the service as usual, riders can round up the cost of their ride to the next dollar and donate the change to the charity of their choice.
Offer something valuable in return for enrolling in your customer loyalty program.
When you offer cashback rewards as part of your customer loyalty program, assign monetary values to your points so customers can see what they can earn (and spend) by continuing to do business with you.
Watch any commercial offering points for dollars, airline miles, groceries, or gas, and you will see how credit cards illuminate this dollar-for-dollar.
Two-thirds of customers are more likely to spend money with brands that take a stance on social and political issues that matter to them.
Don't forget to incorporate those values into your rewards program, too.
For every pair of shoes purchased by a customer, TOMS Shoes donates a pair to a child in need. Knowing that providing resources to the developing world is important to its customers, TOMS takes it a step further by launching new products that help other important causes — like animal welfare, maternal health, clean water access, and eye care — to get customers excited about helping in other ways.
Ensure that you promote the benefits of joining your customer loyalty program once it's launched.
Share the points your customers could earn from spending that much on your online store next to the price.
If you have flown on an airline that offers a loyalty rewards credit card, you may have experienced this. If you apply for the airline's credit card, you could earn 30,000 miles toward your next flight.
Other ways to do this include promoting the program on social media channels and adding on-site push notifications when customers complete an activity that earns them points.
Is there anything better than one reward? There are two rewards, of course.
Rewards programs with co-branding can expose your brand to new customers and provide even more value to your existing customers.
As an example, T-Mobile offers a Netflix subscription with the purchase of two or more phone lines for free to its loyal customers.
Everyone loves games and competition — so use that winning spirit to get your customers interacting with your brand more frequently.
Lots of brands gamify their customer loyalty programs to earn valuable engagements within an app, website, or at point-of-purchase.
Gamification can easily be done with points. Treehouse teaches coding and app development and rewards engaged users with points that lead up to badges they can display on their websites and social profiles to impress colleagues and potential employers.
If you're operating with a growing business, you may not have much flexibility when it comes to your budget. However, you can still offer an attractive rewards program that fosters customer loyalty.
Even though small businesses don't have the same financial power as bigger companies, they can still create incentives that encourage customers to return. The rewards program of a small business should be creative and develop a unique system that benefits both the company and the customer.
Discover how growing companies build customer loyalty through rewards programs.
B2C companies often offer punch cards as rewards. After every purchase, customers receive a hole-punched business card. As customers fill up their cards with punches, they receive perks and rewards. As a result of this system, customers are guaranteed to return within a certain period of time to receive the reward, resulting in repeat purchases and revenue growth.
Nothing Bundt Cakes has a popular punch card loyalty program that offers customers a free personal cake when they buy 12 of them.
A opt-in email asks the customer for their email address so that you can communicate with them. If the customer opts in, your company can email them offers and promotions.
The cost of composing and sending emails is low, and they can be sent at almost any frequency. Email automation tools can also be used to deliver emails efficiently.
Incentives like free trials are typically used to convert leads, but they can also be used as rewards programs. Let's say you're about to launch a new product or service. You can offer a free trial to members of your loyalty program. As a reward for customer loyalty, this also serves as a marketing tool that primes your customers for future sales.
One way to add value is to look externally at businesses to partner with. By combining your resources, you can create an offer that benefits both you, your partner, and your shared customers.
Credit card companies like Visa and MasterCard do this all the time by offering cards sponsored by a specific brand. While having a credit giant on your side is nice, start by looking for local, non-competitive businesses you can partner with to add more to your offer.
Isn't it better to let your customers help you find new leads?
Offer loyal customers an attractive reward for customer referrals to encourage them to become advocates. Your customers will be happy to network with other potential leads if your offer is good enough.
It is a proven method of tracking customer loyalty to track points. It is important to have a worthwhile incentive and a reasonable deadline to earn the incentive for these programs to be successful.
Customers don't get frustrated with point-based loyalty programs because they find the sweet spot between the two. People might make purchases fairly frequently if you sell workout gear, and there are many different companies to choose from.
Incentives should be valuable - like free t-shirts - and buyers should be able to earn them quickly enough to keep striving toward them, but not too quickly that the incentive becomes unattractive.
Finding the balance can be achieved by assigning a point value per dollar, but you need to ensure that it is fair. A $10:100 point ratio may not be feasible for your profit margin, while a $1:1 point ratio might discourage customers before they even sign up.
Loyalty discounts come with a bonus to the traditional customer loyalty programs we've covered so far. These types of programs allow you to give back to the customer while also collecting data that can help you personalize their buying experience. Kroger's Community Rewards program is a great example of loyalty discounts in action.
A program of this type would offer consistent, predictable discounts to customers whenever they display an identification marker. A QR code, a card, or a phone number might be used.
The back-end of your business captures data about what the customer purchased. When you understand your customers' trends, patterns, and habits, you can improve their experience, making them even more loyal to your brand.
Incentives like these are so strong because they are consistent and predictable, which makes customers want to return.
Similar to the idea of a loyalty program, there’s an added sense of luxury or exclusivity when a business introduces VIP perks.
By introducing a VIP membership program, customers can subscribe to your company’s email or SMS in exchange for better product selection or ease of use. Not only will they be more interested in your new offerings, but they’ll get notifications each time they check their email or phone messages.
Giving back to the community is good for the world and business. A great way to foster customer loyalty is to offer added benefits for shopping with your company — like doing something for the greater good.
Baron Fig sells office materials in a broad market, but it has a program that plants trees with every item sold. The selfless nature of these programs will make conscious consumers think highly of your small business.
Small businesses can benefit from community programs because they attract customers in their area or through computer screens.
During the last year, it has been evident how businesses can impact their audiences when they position themselves as a way to connect with others. In some cases, family-owned gyms offer Zoom classes to make customers feel more included, or bakeries pop up at local flea markets. All of these steps can be taken by small businesses to build customer loyalty and social bonds.
The customer experience must be prioritized when building a customer loyalty program.
You don't have to offer a loyalty program to solve all your customers' problems - it's simply a more interactive way to say "thank you, come back." Once your customers trust you, they'll be eager to earn rewards for shopping with you. After all, don’t they deserve the royal treatment for being loyal customers?