Four Rules for Earning Your Customers’ Loyalty
Loyalty, like trust, is earned.
And, like trust, it’s an essential part of the success of your business. Studies show that loyal customers spend 67% more than new ones. So how do you grow that trust? How do you earn their loyalty?
Delivering excellent products and services are the obvious answer…but let’s dig a little deeper.
This one should be obvious. We learn from a young age to say please and thank you. So remember your manners. Be grateful to your customers for their business and for the success they’ve brought you by giving back to them. Say thank you with rewards that convey appreciation and inspire repeat business.
Cash Rewards Don’t Pay
Part of becoming an expert at delivering products and services that customers love is figuring out their needs. The same can be said for loyalty marketing. Say thank you through rewards that mean something to your customers. Study your customers and understand what drives them. Many companies default to cash rewards because they assume money talks. In many circumstances, it does. But a recent study from the IRF (Incentive Research Foundation) actually indicates that companies offering non-cash rewards reached 84% in 2016. That’s because over the last 20 years, businesses have come to realize that cash rewards fall flat. They can quickly become predictable and expected. If the monetary compensation doesn’t increase over time, eventually, the audience loses interest. Conversely, non-cash rewards can come in different forms and categories…so there’s always opportunity to keep things fresh. Moreover, with non-cash rewards, there’s an opportunity to appeal directly to the customer’s emotions and desires. Once you do that, you’ve fully engaged them. So know your audience. Know what motivates them and deliver exactly that.
Don’t be boring and generic. Rewards aren’t one size fits all. Every member of your audience has different wants and needs, so your reward offering should be diverse and reflect their varied demands. Also, nobody wants outdated merchandise, so make sure you’re rewarding customers with products that reflect today’s retail trends. Finally, people love trophy items, so make sure the products you’re offering in your rewards programs are of high-value and carry strong brand recognition.
Customer feedback is essential to any successful business. Not only can it be a useful tool in improving a specific product or service, but it also serves as a way to measure overall customer satisfaction. Plus, it provides important insight that can be used to enhance customer experience. More than that, it shows customers that you value their opinion and work to serve them accordingly. This drives loyalty. The same can be said when you’re offering rewards programs. Gather feedback as often as possible and take it seriously. Customers will tell you what they want in their programs, so make sure you listen to their thoughts and shape the program appropriately. To offer rewards that meet their demands is to show customers that their voices are heard and valued.
To learn more about how to drive loyalty among your customers, contact us today.