Customer loyalty strategy
Customer loyalty strategy. How much does your company lose by not retaining customers?
Acquiring a new customer can be up to 7 times more expensive than retaining a customer who has already purchased your brand.
We know that customer loyalty comes from their willingness to repeatedly buy your products or services because of their good experience, satisfaction with the purchase and service and, above all, their perceived value. But managing to close this equation is not always an easy task.
And reaching this level of loyalty is essential for the sustainability of the business. The idea is to focus on customer lifecycle value rather than the value of one-time transactions.
Loyalty programs are one of the most effective ways to get consumers loyal to a company.
It creates a deeper connection between customers and businesses, increasing spending during each visit.
How to succeed when implementing a customer loyalty program?
1. Aligning goals, brand and customers with Customer Loyalty
The first step is to assess which loyalty program model best meets your brand’s goals and is most aligned with your customer’s profile. There are different programs for different types of businesses; if you have a retail business, focus on choosing a program that meets your needs. Remember, more than offering points, a loyalty program has to generate value and not just offer free coffee.
2. Deliver what customers want, not what you think they want
Customers expect loyalty programs to deliver experiences that create value, right? But do you know what your consumer’s real interest is? Their interest varies depending on the product or service they buy and the purchase channel. Don’t assume that every customer is interested in every product or service you offer. Always analyze which ones are in higher or lower demand by conducting surveys and focus group interviews to identify which experiences are most valued and how they lead to greater customer satisfaction with your brand.
The study points out that customers are willing to share their impressions and information as long as it results in a better shopping experience, and they are also assured that their data is safe.
3. Personalizing is not demographically targeting
Consumers want their needs to be simple, hassle-free, and meet their needs. Personalization can deliver this experience, but you must prove to your customers that information sharing is critical to this personalization process.
And it is not enough to place the customer in a particular demographic segment like age, gender, education level, occupation, etc. You need to know their interests and preferences.
Business owners need to show that their loyalty programs are aligned with customer needs and can make their shopping experience special, engaging them more and more with the brand and generating more loyalty.
4. Build loyalty by valuing customers
The star of loyalty programs should be the customer, not software or applications… A good program that offers good rewards can attract buyers and create “loyalty”, but when another program provides better benefits, goodbye customer.
True loyalty is earned by providing unforgettable, personalized experiences and demonstrating that you know and understand your customer’s needs. In addition, people like to have options, so instead of offering a program with pre-defined options, identify how you can provide the possibility for the customer to build their journey, choosing their benefits and feeling in control of your experience. Thus, programs generate more value and establish more emotional connections, critical factors for building loyalty.
Retail Solutions have the best customer loyalty Program for retailers.
Extend your customer lifetime value by offering a personalised experience. Your relationship with your customers is key to growing your business. It’s easy to get started.
Who are we?
Retail Solutions is a market-leading EPOS provider with over 25 years of business experience. Our leading sectors are convenience stores, supermarkets, forecourts, and pharmacies.
We are dedicated to providing your store with the most up-to-date and reliable point-of-sale hardware and software tools to help you manage your business effectively.
To find out more about what we do, get in touch to chat with one of our knowledgeable consultants:
About the author:
Juliane Camozzato is an Executive Marketing at Retail Solutions. You can follow her on LinkedIn!