It's easy to get caught up in the day-to-day operations as a small business owner and forget to spend time on your retail marketing plan to increase your sales. Most businesses think that they have to dedicate a big chunk of their annual budget to marketing, and while for some this is true, there are some marketing ideas that don't have to cost a fortune while still delivering real results. One very effective marketing tool to build customer loyalty is loyalty marketing and reward programs.
What is customer loyalty? Customer loyalty is essentially the behaviour of repeat customers, as well as customers who will vouch for a business by leaving a testimonial regarding a favourite product or service. Loyal customers will also tell their friends and family about the amazing experience they had at your retail store whether online or at a brick-and-mortar store.
Building customer loyalty is a key retail marketing strategy, because it will mean that a business can thrive with an ever expanding client base instead of constantly having to find new customers. Some marketers put much importance on the strength of the relationship a business can build with their clients, which depends on: satisfaction of their experience with a business, the quality of the product or service, and in some ways the cost of the service relative to the service provided.
The concept behind loyalty marketing is to get your customer to switch from another retailer or service provider, to yours. In order to get a customer to switch over to your store/company, you'll need to reward them with something that's valuable to them. However, it's not the goal to just get them to switch over one time, you'll need to have them continue coming back. Develop a loyalty card that rewards your customer with something of value to them and they'll keep coming back to earn more and more of that valuable rewards.
Some businesses have had great success with loyalty punch cards. Think of the local pizzeria that offers a "buy 6 get one free" punch card. How often have you found yourself searching for that punch card in an effort to get all six circles punched out? Or what about the nail salon that offers half off after 10 visits? Any business can adopt this technique by printing up business cards with slots that they can either use a custom stamp or shaped paper punch to mark a sale. Consider also printing a price list or promotion on the other side of your card, and give them out freely! You never know where your cards will end up, and may result in some surprise traffic.
Another way to offer a reward as a result of continued loyalty is to partner up with a consulting company, like Loyalty One, who can offer years of expertise and experience with a range of businesses both big and small. Loyalty consulting companies can design a strategy to identify your goals and find a way to meet them by increasing your sales and creating repeat business. Consulting companies that focus on loyalty and rewards programs will also help you build relationships with your clients, which many customers feel is an important part of their everyday spending habits.
One of the major factors that can affect customer retention is customer service. Customers will always remember poor customer service over a good product, so make sure that along with your wonderful product or service you offer outstanding customer service to ensure your customers will return time and time again.
Loyalty programs should be considered seriously by any business, because it has a direct affect on profitability which is a concern for any business of any size. Loyal, long-term customers are less likely to take their business to another company, and more likely to provide a business with free word-of-mouth advertising. Loyal customers are also likely to diversify their spending within your company or retail business because they already have established a comfort level with you and your employees.
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