There’s no arguing about it: customers are important in business. When the business starts out, it starts out small and tries to build up. If a business doesn’t have customers, however, they don’t make sales; and if they don’t make sales, they don’t have the income to grow the business. Ultimately, they’re the lifeblood of a business. Without them, the business won’t survive.
Retaining customers
It’s important to keep building a business and acquiring new customers, but it’s even more important to hang on to existing customers. For a start, it’s a repeat profit, and there’s also the fact they’ll be more likely to spend more money with the business because they like the brand and what it has to offer.
Retaining customers also allows the business to save money on marketing because the customer is already convinced them the business brand is the right one for them; in fact, when they especially like a product or service, they tell someone else about it, which gives the business itself some free word-of-mouth advertising. This is definitely something for businesses to keep in mind. It costs more to acquire new customers than to keep existing ones.
Loyalty programs
One effective method businesses use to retain their customers is a loyalty program. Basically, these programs reward customers for spending money with the business. This may be in the form of a discount or a promotion when they next shop at the business, which persuades the customer to return to the business and shop again.
A rewards program isn’t as expensive for the business to run as you might think. Businesses have to put careful thought into them, however, to keep the expense down and make them work. If a business sets up a rewards scheme as a short-term promotion, it will be less successful. The purpose of a loyalty scheme is to establish long-term loyalty, and the business must design it to follow this purpose if it wants the scheme to succeed.
If customers are rewarded for their loyalty with a brand, they are more likely to use that company again to make a purchase.
Examples of successful loyalty programs
Of course, customers like a bargain, and some companies and businesses have been able to create very successful loyalty programs. Here are some examples of businesses that work hard to keep their customers happy by offering a terrific loyalty scheme:
Wink Bingo
The online bingo operator Wink Bingo offers an engaging rewards program, with which the player can collect rewards to spend on free spins, bonus, combos, and other features. The operator holds a “Rewards Wednesday” each week, in which the player deposits £15 and can earn up to 500 rewards. The more they play, the more points they receive to spend on Wink Bingo’s site. This relatively small spend makes the scheme affordable for the customer and allows them to get more out of the site. Naturally, this helps the operator secure more loyalty from them so that they keep playing and become brand loyal, which means they are less likely to visit another site to access the same services.
If a customer goes VIP, – there are three different VIP rewards programs: Sapphire, Ruby, and Diamond – they enjoy extra perks. These include a large welcome bonus, entry to member-only competitions, exclusive jackpots and more. When they choose the Diamond VIP rewards scheme, they’ll receive a 55% re-deposit bonus on every game and deposit.
The North Face
A lot of businesses provide points as part of their loyalty scheme, in which the customers receives a specific number of points when they spend a certain amount of money. Take the outdoor recreation product company The North Face. They award 10 points for every dollar the customer spends online or in a retail store, or five for every dollar they spend in an outlet. The customer can then put these points towards a new purchase.
The North Face have also created an app for the program. Customers can use this app to manage their loyalty account and monitor the rewards and how many points they’ve accumulated. The app encourages the customer to engage with the brand more, which is good news for The North Face.
Most common loyalty programs are when a customer will receive points each time they make a purchase, these points can often be used as discounts on future purchases.
The Body Shop
The Body Shop has gone down a different route by tying their rewards program in with their values and their customers’ values. The brand believes passionately in animal welfare and caring for the environment. As well as allowing customers the chance to earn points when they spend, they give them the option to donate their rewards to the animal welfare charity Born Free.
Additionally, customers can attend events and get sneak previews of new collections. The latter builds up anticipation around a product. Naturally, everyone likes to be the first when it comes to seeing something new.
Nike
Sportswear and sports equipment company Nike have tied their loyalty program in with a motivational approach. They know their customers are likely to be pursuing a goal of some kind when they buy their clothing — although admittedly, some people just find sportswear more comfortable to wear, in general — and that the closer a person is to achieving their goals, the more likely they are to push towards them.
Nike have created a number of apps to help customers track their progress and accomplish their aims. The program rewards the app user as they work towards their goals and hit different milestones on the way. Realize a goal and receive a reward. That’s the system.
One of the especially clever things isn’t just that customers engage with the brand. Nike understands that the customer will consider Nike a part of their success as well. This is because the Nike app is helping them to succeed when training.
Building customer loyalty is crucial in business. Doing so can secure repeat business, easy income, and save the business a few headaches. A rewards scheme is a long-term strategy, however, not a quick fix, and if a business approaches it for the latter, the scheme can fail. Get things right and they have a customer for life.
