6 Ways to Increase Retention and Acquisition through Customer Loyalty Program
6 ways to Increase Retention and Acquisition? Why it is important ? acquiring a new customer costs up to seven times the expense of keeping an existing one for brands. Nonetheless, only 56% of brands focus on retention rather than acquisition. Some of the strategies used for acquisition include investment in costly advertising, events and marketing materials.
One of the reasons brands focus on acquisition is that it seemingly indicates growth and their staff enjoy the commission that they receive from sales. On the other hand, retention relies on the nurture and long-term view of the relationship with a customer.
The truth is that brands need to create both effective acquisition and retention strategies if they want to be successful. Brands that want to drive customer engagement and retention and also attract new customers must design a customer loyalty program that rewards existing customers and appeals to new ones. Here are some ways for brands to strategize their loyalty programs.
Create relevant content
Brands need to encourage their customers to learn more about them by rewarding the customers who watch videos or read blog posts. Useful and insightful content will build better brand affinity. This strategy can be used to promote new products, educate their customers and help position the brand as an expert. A good example of this can be taken from beauty consumers who are turning to user-generated content before buying products. Beauty brands should create and leverage content such as video tutorials, online reviews and even selfies to gain a competitive advantage. An example of this is the brand Jackhammer. Jackhammer rewards their members for sharing content using their products by giving them discount e-vouchers. This helps to engage their members and keep them informed about the brand.
Ask for Feedback
Customers will feel valued when the brand listens to their opinions. Reviews are useful not only for educating new customers but also for hearing directly from the core users. Good reviews will help boost the brand’s profile and gain the attention of new customers. Il Vero gives membership points for members who fill in the feedback survey.
Surprise & Amuse Your Customers
Surprising and amusing customers is a great tactic for a brand’s loyalty program. It can stimulate inactive customers or help devoted customers celebrate special occasions to make them feel closer to the brand. For example, Shabu-shabu House’s loyalty program rewards their members with a free Wagyu meal during their birthday. Gifting customers unexpectedly has the potential to turn them into lifelong loyal advocates. These advocates will willingly recommend the brand to their family and friends. The brand Gorjes invited their members to the grand opening of their new outlet and provided special discounts for the attendees.
Offer Exclusive Perks
Customers always want special treatment in exchange for their loyalty to a brand. It’s important to offer exclusive rewards and experiences to make members feel special and valued. Brands can accomplish this by inviting their members to private events and providing them with early access to the tickets.
Brands must be omnipresent, meaning they must connect with their customers across all touch points. Members of Kalbe Farma can receive points for shopping their products in any outlet and then snapping the receipt of their purchase.
An effective way to promote the brand is by rewarding customers for their referrals. This encourages word-of-mouth marketing. Referral bonuses have the potential to bring in more customers at a low cost, making it a beneficial for both the brand and the customer. Zenbu’s referral program has been very effective in adding new members.
By incorporating and rewarding the spending and engagement activities as part of a loyalty program, brands can gather more insights on their customers and use it to drive personalized experiences and relevant promotions. Brands can use this information to create the best marketing plan for existing and prospective customers.