Businesses, no matter the size, put in significant effort to try and win over new customers.
According to the book Marketing Metrics, businesses have the probability of selling to a new prospect with only 5% to 20% while the chance of selling to an existing customer rises to 60% to 70%.
Despite this fact, still, the customers that were already brought on board are often forgotten or at least given less attention to. This is where customer loyalty comes into the picture.
Customer retention is said to be the biggest problem brands face according to 61% of retailers, per survey issued by the Retail Systems Research.
And for customer retention, it is crucial for marketers to build customer loyalty. If there’s one thing to keep in mind in marketing, that is customer loyalty is the key to repeat purchases – which is the backbone of any business. Even with a mere 5% increase in loyalty, your profits per customer can increase by 25-100%! Isn’t that worth pondering?
But loyalty, like most essentials in life, cannot be generated overnight. It’s built by creating positive experiences for your customers over a long period of time. And one of the most effective ways to do so is by rewarding them.
Here are some easy ways to build customer loyalty:
Design a Customer Loyalty Program
Statistically speaking, gaining a new customer costs 6-7 times more than keeping an existing one. Loyalty programs are created by companies to help monitor their consumer behavior, increase sales performance, and boost customer retention. Customer loyalty programs give your customers an added bonus to spending more at your establishment.
Some companies invest millions into complex rewards programs but this only works for larger companies with immense marketing budgets. But loyalty programs can be used by companies of all sizes. You just have to employ a smart and cost-effective strategy to design an effective one.
When launching loyalty programs, there needs to be some type of reward or incentive for the customer to take part. Offering promotional products as a reward for repeated purchases has been proven quite effective.
The point-based customer loyalty program is a popular and efficient tool. This allows customers to collect points and redeem them for free swag. Promotional apparel, drinkware, notepads and product samples will work well as loyalty program rewards.
Facilitate a Contest – online or offline
If you want a surefire way to increase customer loyalty while generating excitement around your brand, facilitate a contest, whether online or offline. You will surely garner interest among consumers through this.
Holidays are great occasions to hold contests as seasonal giveaways are something of a novelty when it comes to promo items.
If you want to make your promo giveaways more memorable, craft it in such a way that it relates to certain festivities so people will have memories attached to them. Imagine winning a planner on New Year’s day?!
Surely, the winner will remember this and tell the story every year.
Contests allow your customers to engage with your brand. This not only strengthens your brand’s relationship with them but also helps you gain new customers as well.
Take Advantage of Referral Programs
Building loyalty among existing clients and acquiring new customers are two distinct goals but referral programs can kill that two birds with one stone.
According to a Nielsen study, 92% of people trust recommendations more than any other form of marketing.
If you introduce a referral program that rewards existing and new customers, you may not imagine the wonders it can do to your marketing efforts.
Most customers will give referrals if they like your brand. By giving them an incentive to do so, you’ll show them that you value all that they do for your brand.
Send Birthday Gifts
If you really want to go the extra mile and make your customers feel truly special, sending them a gift on their birthday will definitely do the trick!
It gives you the opportunity to offer a personalized experience and helps customers remember your brand. What’s more, they will boast of it through their social media accounts.
Adding such a personal touch to your promotional plan will reinforce your brand’s relationship with customers in a special way.
Depending on your target audience, you can utilize classic and functional promo items like, drawstring bags, umbrellas or gift sets. Just make sure that you send a handwritten note along with the gift.
Now, have you thought of strategies to cultivate loyalty among your customers?
Customer loyalty is indispensable in the success of any brand. You will never go wrong with promotional products if your objective is boosting customer loyalty while increasing brand exposure.
We, at Greco Promotions, believe that enhancing customer loyalty must be a core priority of every business.
With over 20 years’ experience in building brands and maximizing marketing ROI, we can help you come up with smart strategies to raise brand loyalty through our wide selection of promotional products.
Contact us today to get started!