Traditional marketing plans are usually divided when it comes to strategising for new customer acquisitions as opposed to present customer retention. Most of your efforts and money are usually funnelled erroneously into creating a bigger customer base through extensive advertising campaigns, etc, when a shared initiative is possible and even more feasible. New and improved trends employ customer loyalty tactics to attend to both acquisitions and retention through one simple channel – a loyalty rewards program!
Statistics show that customer retention represents 65% of your brand’s income. Loyal customers are between 60 and 70% more likely to buy from you than new customers are, yet so many businesses focus on expanding their new base instead. A balance must be maintained, with the ideal situation of turning new clients into loyal ones.
All customers are looking for in a brand, is a product that works well, is priced competitively, and offers a decent shopping experience. Modern buyers are smarter and are aware of marketing gimmicks and can work out which brands truly reward properly, and which don’t. Wise customer loyalty tactics should, therefore, seek to offer authentic customer engagement. This can be done efficiently by covering six smart marketing strategies:
Smart steps to implement into your customer loyalty tactics:
1. Provision of perks
Customers love freebies and value-added perks. Like we said earlier, they know how to differentiate between real bonuses and gimmicks, so businesses must ensure that they incentivise their brand by offering a tangible discount or cashback on their products and services.
Extra gifts and delights go a long way to making a customer feel like they’re getting a good deal and are way more likely to both retain them for future engagement as well as attract new customers. One of the best perks is one that can be enjoyed instantly, like UBU’s instant cashback rewards on every purchase made at any of the listed vendors.
2. Exclusivity = Engagement
Loyal customers like to feel that they’re appreciated and must feel that their rewards are exclusive. This will not only retain their interest in the brand but invite others to become part of the exclusivity offered by your company.
Some practical means to increase the exclusivity that your brand offers include:
- Invitations to exclusive events
- Early access to sales and special deals
- Special prize draws and other winning opportunities
- Birthday specials
- Holiday discounts
It’s always important to remember that people are social beings with a longing to feel connected to something. If your brand can make all your members feel like they are exclusively apart of your business, most of the battle in customer retention is already won and the base is set for drawing new potential.
3. Promote feedback
When it comes to customer loyalty tactics to implement, a part of building an emotional connection to your brand in the hearts of your clientele includes giving them a platform to air their views on. Brands that simply continue along and do what they want can be considered arrogant and off-putting by consumers, but a company that seeks to get to the heart of what a customer needs will be seen in an attractive light.
Promote feedback. Not only will your customers feel heard, but it offers valuable insight into the needs of your target audience, which will give you the ability to adapt your products and services to drive new sales. It also provides a priceless testimonial of the quality of your brand that may influence new and untapped consumers.
Providing incentives in the form of discounts and gifts may be a prudent way to get people to leave a review or post a blog on your products and services.
4. Referral rewards
According to specialists in the business field, 92% of consumers are more likely to believe suggestions from their friends over business advertising and 74% of consumers identify ‘word of mouth’ marketing as a key influencer in their purchasing decisions. For these reasons, you will want to try and leverage your existing customers to add to your client base. The best way to do this is to make sure that they are:
- Receiving valuable rewards themselves via your loyalty program which is worthy of mentioning to others.
- Rewarded further for referring friends and family to their products. This can be done by offering discounts on further deals or instant cashback from their referral’s deals.
5. Educate your customers about your brand
The more consumers know about your brand, the more likely they are to trust it. Unfamiliarity and ignorance are an enemy of sales. We are far more likely to order a meal from a restaurant when we know what the ingredients in that meal are, in the same way that we are more likely to buy a high-end phone when we realise what advantages it holds over cheaper ones.
It is, therefore, a great strategy to incentivise your customers for watching relevant videos or reading blog posts on your goods and services so that they can form an emotional bond with the brand and understands the perks that it offers. A great example of engaging content that we see in the market today, is from the beauty industry. There are ample tutorials and selfie content available for customers to view and built familiarity with the brands that are sold.
6. Omnipresent offers
The business world is a lot larger than it was only decades ago. To be truly successful, your marketing strategy must cover all platforms and facets of the business. Loyalty rewards and offers in association with your brand must be made available on social media, in your online store, in your physical store, and at special events and expos. This universal approach to marketing ensures that your brand is always in the eye of your target market. That way, when they need a product/service like yours, your brand becomes the natural choice.
Don’t do it alone
The business world is a daunting place already, so the implementation of new customer loyalty tactics might be enough to make you turn around and run in the opposite direction. At UBU International we are offering to help you walk the line. For more information about how UBU can assist you, visit our UBU for Business page.