REWARD CUSTOMERS TO WIN NEW CUSTOMERS

Loyalty programs are not something that is new to the business world.  They have been developed and have gained tremendous acceptance from consumers worldwide for more than a decade now.  Loyalty programs are one of the marketing strategies that are structured to reward customers for their loyal patronage and in return, the company manages not only to retain its customer base, but in most likelihood, increase it.

Loyalty programs have provided many benefits and are adaptable to the many types of industries irrespective of their size and budget.  Although it has been successfully tried and tested in the retail industry, it can be tweaked and structured to suit any business to meet customer expectations.  Loyalty programs come in many forms.  The key thing to remember is that a loyalty program cannot and will not survive unless the customer sees the company’s name over and over.

The future sustainability of any business depends on its capability to generate customer loyalty.  A regular customer translates into a regular sale and profit to sustain the business’ market share. Attracting new customers usually involves higher expenses than trying to maintain an existing customer base.  Loyalty programs are the cost-effective method to retain customers without even the customers realizing that their participation in the program started when they purchased the first product or service from the company.  Many customers would be most willing to fill in forms requiring personal data that the company will subsequently use in their correspondences to promote their products and services.  The customers would also feel appreciated when they receive loyalty cards for collecting points in return of their patronage that entitle them to various prizes, bonuses, discounts or product redemptions.  A happy and satisfied customer is the best sales promoter for any business.

Loyalty programs are not only meant for large corporations or companies that operates globally.  Many smaller enterprises are not aware that it is also suitable for the small network of stores they are managing without incurring large activation and operating expenses for their loyalty programs.  Implementing a loyalty program need not turn their budget upside down but on the other hand, could result in winning new customers.  This is an effective and simple marketing strategy to winning and maintaining their customers.

A successful loyalty program can have a huge influence on a customer’s spending habit towards the company’s products or services.  In order to yield from that spending habit to the benefits of the company, it is important to begin with knowledge and understanding of the customer’s needs, behavior and expectations.  Gaining clear insights into the attributes of highly valued customers and delivering rewards that genuinely resonate with them can make the big difference on the direction of the company’s bottom line.  To find out more about implementing a customer loyalty program, go to: RESTAURANT DATABASE SERVICES

BOOST CUSTOMER LOYALTY AGAINST THE COMPETITION

Business competition is getting more and more challenging and furious in recent decades.  Consumers are presented with an ever increasing amount of choices while they become increasingly choosy in their spending habits.  Consumer demands these days are also more complex and volatile.  With such challenges, customer loyalty can either soar or doom a business.

 

Pareto’s principle of the 80/20 rule reveals that typically about 80% of revenue comes from just 20% of customers. Such a skewed distribution makes it a sensible strategy to concentrate most of the company’s resources on the 20% of customers.

 

It is commonly known that seeking new customers will cost much more than retaining them.  Therefore, without busting the company’s budget while maintaining competitiveness, there are a number of cost-effective sales promotion ideas that can be used to the company’s advantage.  One good idea is customer loyalty programs that will generate great effects in the sense that they cultivate customers from an existing customer base.  A properly targeted customer loyalty program can offer several benefits.  A good program can lower costs, elevate customer value over the lifetime, and ultimately, solidify a customer base that will be loyal to the company’s brand.  Loyal customers are ever so eager to communicate their appreciation towards the company’s products and services to the tune of approximately 52 other potential customers through referrals.

Loyalty programs are relatively easy to implement and once properly implemented can be great avenues to not only retain current customers, but also a surefire way to improve business sales. It seeks to bond customers to the company’s products and services and helps to motivate customers to make their next purchase which directly lends their support to the other aspects of the company’s offensive and defensive marketing strategies.

Database technology can be used to establish a personalized dialogue with customers.  The communication can be almost instantaneous with the social media of today.  Email blasts can reach every customer you have in an instant.  Regular mail still is a valid option for sending post cards and notices.  

Contact with your customer base is essential and in today’s economy CONTINUOUS contact is even more crucial to establishing customer loyalty and repeat business.  The main thing to insure is the quality of your communication.  Make sure the information, sales, bargains, opportunities, etc. that you are communicating to your customers is what they want and need.  Failure to heed this requirement will lead to landing you in the junk mail heap both electronically and with regular mailings.  You should also give your customers something that can use NOW… and not have to accumulate over periods of time.  Everyone loves immediate gratification!

Will customer loyalty programs work for your company?   The benefits are there to be tapped and the implementation is simple.  The rest is to understand the customers’ expectations and meet their needs in order to maximize their participation in the program and prevent any defection.  Need to know more about loyalty programs, visit me in RESTAURANT DATABASE SERVICES.