We’ve often heard the phrase “the customer is king”. Maybe the line should read “customer loyalty is king” because, given the current trends, that certainly seems more apt. In an age where the consumer is spoilt for choice, building loyalty among one’s customer base can often mean the difference between expansive growth and mediocrity, which is why more businesses are incorporating the customer loyalty marketing concept into their retention planning.
Customer loyalty marketing is a strategy that revolves around persuading customers to keep purchasing from a particular company. This can be achieved through different means, including incentivising customers through loyalty program apps. Customer loyalty marketing has proven to be a cost-effective, highly effective method of retaining customers.
In the paragraphs that follow, we will take a look at some interesting facts about this retention strategy. If your business hasn’t already done so, now might be a good time to put customer loyalty back on the throne that it belongs.
It is a Revenue Goldmine
There is no denying that customer loyalty plays a huge role in driving the revenue growth of a business. According to various studies, roughly 65% of a company’s revenue flows from repeat business.
If that stat wasn’t enough to convince the sceptic in you, consider this: a mere 5% increase in customer retention can increase a business’s profits by a whopping 125%!
It makes sense for businesses to place more focus on retaining their existing customers. For this reason, a strong customer loyalty marketing plan is vital for any business looking to grow their income.
If You Want Loyalty – Have a Program
Loyalty programs are great for developing brand loyalty. Almost every major study points to this fact. Several reports have indicated that more than 50% of consumers would consider doing more business with a company based on whether that company had a loyalty program.
One Harvard Business Review study showed that companies with solid loyalty marketing programs generally increase their revenue 2.5x faster than their competitors. Customers tend to spend more at businesses that they feel can recognize and reciprocate their loyalty. Do not neglect the power of the loyalty program!
Customer Loyalty On The Go
Did you know that the average person spends roughly three hours, 15 minutes on their phone, every day? That’s a lot of screen time. It is no wonder, then that research has revealed that almost 60% of consumers prefer to interact with their favourite loyalty program via their mobile device.
Not only does going mobile satisfy the loyal customer’s need, but it also makes sense from a business perspective. Customer loyalty is often generated by maintaining a consistent presence.
By reaching out to where customers currently “reside”, companies can reach out to their loyal customers wherever they find themselves. It pays to make your loyalty rewards program go mobile.
Take the Omnichannel Approach in Your Customer Loyalty Marketing
Incorporating an omnichannel presence into a customer loyalty marketing plan is a great way to broaden customer reach.
Studies conducted by the Aberdeen Group showed that companies who engage with their customers via an omnichannel strategy manage to retain up to 89% of their existing customer base.
Customers seem to enjoy having the ability to connect with their favourite brands on different platforms, and in a seamless way – what happens on one channel, should be carried through to all others. Companies should use this fact to their advantage. Ensure that no matter where your customer connects with your brand, you carry their experience through from other channels.
I’ll Take the Money, Not The Points
When it comes to loyalty programs, it is all about the money. Surveys show that the top reason that people join loyalty programs is to save money.
While consumers do enjoy receiving customer rewards for their loyalty, that desire is secondary to the monetary benefits. As firms plot their loyalty marketing strategies, they need to ensure that they have adequately incorporated the saving aspect into their loyalty program.
A wonderful example of incorporating the savings aspect can be seen in the UBU International loyalty program, where customers receive actual cashback rewards every time they purchase via the loyalty app.
Fill up on Good Content
Do not ignore the value of great content. Offering customers quality, relevant communication and other content does go a long way in making a customer smile.
Consumers who found a company’s content to be relevant reported higher levels of satisfaction than those who found content to be of little or no relevance. Make sure that your customer loyalty marketing is sending the right message.
There’s Loads of Value in Customer Loyalty Marketing
Customer loyalty marketing carries an incredible amount of value for businesses. Rewards marketing as part of a customer retention strategy allows companies to spend less on trying to attract new customers while continuing to grow their revenues. The facts above prove this point. If your business is looking to increase that revenue stream, make sure that you develop a strong customer loyalty marketing plan, one that includes a loyalty program. Have a look at the options that UBU offers. A customer loyalty program, a mobile wallet app, a huge marketplace to sell your goods and services to a captive audience, and more!