Our friends at Hubspot know a lot about customer engagement and they’ve assembled an Ultimate Guide to Customer Loyalty. With a tip-of-our-hat along with some value-added thoughts, this post is a quick tip guide to get your planning and creative juices flowing.
First, the numbers (or, why your customer base is your #1 asset):
- It costs about 5 to 25 times more to acquire a new customer than to sell to an existing one
- Existing customers spend ~67% more than new ones
- In the U.S., 40% of online shopping revenue comes from repeat customers
- Loyal customers tell their family and friends about positive experiences
With so many shopping choices, how can you get your customers to love you most? First, gain trust and loyalty. Then, give value and care in return.
Clearly, marketing dollars directed toward a Customer Loyalty and Engagement Program are well spent. In fact, why not add the line item to your budget and schedule a strategic planning session right now!
As you plan, consider the strategies used by world leading brands. One, or a combination of several, might fit perfectly into your sales incentives wheelhouse.
- Use a simple point system….like Sephora
- Use a tier system to reward initial loyalty and encourage more…like Virgin Atlantic
- Charge an upfront fee for VIP benefits…like Amazon Prime
- Structure non-monetary programs around your customer’s values…like TOMS Shoes
- Partner with another company to provide all-inclusive offers…like American Express Plenti
- Make a game out of it…like Swarm Perks
- Be as generous as your customers…like REI Co-op
- Scratch the “program” completely and just be spectacular…like Apple
Once underway, trust (but verify) program success. Be sure to measure the needle. Iterate as you go.
Because success measurement is the anchor of any marketing program, be sure to define your measurement system upfront. Consider the gauges available to you. Set yourself up powerfully to tout your ultimate success.
And, always integrate the best marketing rewards, incentives, giveaways and bonuses. Consider what folks really want. Make it easy to give and receive.
Naturally, gift cards fit the bill 24 x 7, 365 days a year.
Read more at Hubspot: Customer Loyalty: The Ultimate Guide