Is a Customer Loyalty Program Right for Your Business?
Customer loyalty programs are one of the most underutilized methods of increasing retention. You already likely know that 20% of your customers are typically responsible for 80% of your business, and how it’s far easier to convince an existing customer to buy from you than a brand new one.
But if loyalty programs work so well, why don’t more companies use them?
Because the steps can seem overwhelming. Rather than just jumping on the first loyalty program builder you find, it’s important to take steps to understand what this really means for your company and your customers.
Study Your Customers
Ask yourself questions about your customers and consult with your sales team for the details. Find out things like:
- What types of products they buy and how often
- How long they’ve been a customer
- Whether or not you can upsell them or cross-sell additional products or services
- If they use other competitors’ products (and if so, which?)
- How much profit you earn from them
- How quickly they pay for their purchases
- How happy they are with your company
- How likely they would be to recommend your company to others
Once you know this information, it’s time to put your team to work. You want to target those customers who purchase often and could potentially be up-sold or cross-sold.
Enlist Your CRM to Track Your Goals
Your CRM is a treasure trove of customer information, but it can also be an excellent starting point for launching your customer loyalty program. Set your goals according to the metrics you want to reach. For example, if customers typically purchase from you twice a year, moving that goal up to three times through the customer loyalty program enables you to track how successful your program is. Your CRM will also help you evaluate which customers would make the best fit for a loyalty program, namely those who:
- Have a high volume of purchases
- Would be interested in purchasing more products/services or more frequently
- Pay quickly
- Are loyal to your brand
Make the Rewards Clear and Easy to Understand
Once you’ve set up your loyalty program, it’s time to manage it. In short, you want this to be a program that customers are happy with, and where they can connect with your brand (and customer service if needed) in order to build on that loyalty.
This means much more than just offering discounts or special sales from time to time. Try out different ideas such as social media events, a referral system, points or other perks or even a loyalty program built as a subscription service.
Perhaps most importantly, make customer service a priority, not just for customers who are enrolled in the program but every customer. Ask for and genuinely listen to feedback. They’ll tell you what they want, and as long as you’re open to receiving it, your loyalty program will continue to grow!
Take the First Step in Retaining More Customers
Looking for a way to build your customer loyalty program or encourage more customers to adopt it? Workdom can help. Our content-centered approach gives your customers every reason to want to continue doing business with you and your brand.
Contact us today to learn more about how we can help you take the next steps toward cementing your customer loyalty through a concentrated, customized strategy built for your business!