Customer loyalty is key to the success of any business. When customers are loyal, they are more likely to continue doing business with you, and they are more likely to refer their friends and family members to your company. In today’s economic climate, attracting new customers is important however retaining them and ensuring they keep buying from your brand is critical for long-term success.
According to a study by the Aberdeen Group, companies that excel in customer retention generate 95% more revenue from existing customers than those companies that do not. In addition, a study by Bain & Company found that a 5% increase in customer loyalty can increase profits by 25-95%. This highlights the importance of customer loyalty and the impact it can have on your bottom line.
Today, we will discuss five ways to increase customer loyalty focused on the 3 R’s: Rewards, Relevance, and Recognition.
#1: Offer A Loyalty Program
A loyalty program is a great way to increase customer loyalty. With a loyalty program, customers earn rewards for doing business with you. This could be in the form of points that can be redeemed for products or services, discounts, or special privileges.
There are many ways to create a loyalty program that will appeal to your customers. You could offer a points-based system where customers earn points for every purchase they make. You could also offer a rewards program where customers can earn rewards for completing specific tasks, such as referring friends or filling out a survey.
Another way to reward customers is by giving them exclusive access to special offers and discounts. You could also offer complimentary services or products, or send out personalized thank-you notes.
Whatever you do, make sure your loyalty program is easy to understand and convenient for your customers to use. If it’s not worth their time or effort, they won’t participate.
If you’re looking for a brand that is killing it with their customer loyalty program, look no further than Amazon. Amazon has one of the most popular loyalty programs on the market, and it’s no wonder why.
With Amazon Prime, customers can earn rewards for doing business with the online retailer. Prime members receive free two-day shipping on all orders, as well as access to a library of streaming movies and TV shows. They can also save up to 20% on diapers and baby food with Subscribe & Save, and get exclusive discounts on select products.
Amazon also offers a Prime Rewards Visa card that gives customers 5% back on all Amazon purchases, as well as 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases. This card also comes with a $70 Amazon gift card sign-up bonus.
Amazon’s loyalty program is incredibly convenient for customers, and the rewards are unbeatable. That’s why it’s no surprise that Amazon has such a loyal following.
#2: Give Your Most Loyal Customers the Royal Treatment
Your most loyal customers should be recognized and treated like royalty. Show them how much you appreciate their business by giving them exclusive VIP perks. When members achieve a certain milestone, reward them with an exclusive tier of recognition which offers extra perks above the standard loyalty program benefits.
Some great VIP perks to offer your customers include:
– Exclusive access to special offers and discounts
– Complimentary services or products
– Special recognition on your website, on social media or in store
– A dedicated customer service representative
Many brands have found success with VIP programs, and there are many different ways to implement one. Here are a few examples of brands with great VIP programs:
1. Marriott Rewards: Marriott Rewards is a hotel loyalty program that offers members exclusive rewards, such as free nights, room upgrades, and late checkout. They also offer a variety of travel perks, such as free breakfast, discounts on rental cars, and early check-in/late check-out privileges for their most loyal patrons.
2. One small business that does an excellent job of rewarding loyal customers is The Body Shop. The Body Shop offers a loyalty program called ‘Love Your Body Club,’ which rewards customers for spending money on the brand’s products.
Members of the Love Your Body Club receive a number of perks, including a birthday gift, 20% off all purchases, and free standard shipping on orders over $50. They also receive exclusive access to special offers and discounts.
The Body Shop’s loyalty program is a great way to show appreciation to customers for their patronage. It’s also a great way to encourage them to continue doing business with the brand. Thanks to its VIP perks, The Body Shop has been incredibly successful in retaining customers.
#3 Celebrate Customers on their Birthdays with Special Offers or a Gift Card
Birthdays are a special time for celebration, and what better way to celebrate than with a special offer or gift from your favorite brand? Offering a birthday discount or bonus is a great way to show customers how much you appreciate them and personalizing their experience.
Many brands have found success with birthday offers, and there are many different ways to execute one. Here are a few examples of brands that do it well:
1. Amazon Prime: Amazon Prime celebrates members’ birthdays with a $10 credit applied to their account on the day of their birthday. This credit can be used towards anything on Amazon, including items from the Prime Pantry grocery store or digital music, TV shows, and movies from the Prime Video library.
2. Starbucks: Starbucks rewards customers for their loyalty by sending them an email offer for a free drink or food item on their birthday. The offer is valid for seven days after the customer’s birthday.
3. Sephora: Sephora offers customers who have signed up for their loyalty program a free birthday gift, as well as a special offer for 15% off any purchase made during their birthday month.
#4 Offer Perks and Rewards for Referrals
Refer a Friend campaigns are effective. According to a study by Nielsen, referred customers are 18% more likely to stay with a brand than non-referred customers.
There are many different ways for brands to offer perks and rewards for referrals. Here are a few examples:
1. Referral Bonuses: A referral bonus is a one-time reward that is given to customers who refer friends or family members to a business. This reward can be in the form of money, product discounts, or exclusive access to special offers.
2. Referral Perks: A referral perk is an ongoing reward that is given to customers who refer friends or family members to a business. The more referrals, the greater the reward!
3. Loyalty Points for Referrals: If you offer a loyalty program, provide extra points for each referral. Members LOVE to watch their membership points accumulate and points for referrals is an effective strategy.
Make it easy for customers to refer friends – offer a link for them to share on social media or send via email directly on your site or in marketing emails so sharing with their friends is effortless.
Customer loyalty is essential for business success, and it should be a big part of both the marketing and sales department’s strategy. There are many different ways to increase customer loyalty, and we’ve outlined four techniques that have proven successful for other businesses. By implementing one or more of these tactics, you can create satisfied customers who are more likely to return and do business with you again.