It seems like almost every about-to-be-established business is giving out loyalty cards or giving memberships to their customers. However, it does not mean that if everyone is doing it, you should do it too, right?
Well, let’s get some expert advice on this…
According to the 2007/2008 Customer Research Report by Parago, it showed that customers belonging to a loyalty program visit a business, on average, twice as often, and spend four times as much money.
Supporting that report is Lee Resources International Inc., whose statistics showed that acquiring a new customer costs five times more than retaining an existing customer.
Hmm, so now you’re thinking.
Loyalty cards or memberships is an avenue to sell more without getting more customers (making the most out of your frequents). This mode of CRM makes your existing customers WANT to do business with you. These customers are rewarded for giving business to you. It is a simple yet powerful concept.
Contrary to popular belief, customer loyalty does not actually cost a fortune (but it can if you have a have the budget – the swankier and posh you want it to look, the more it will cost you). But, you don’t have to follow what multi-million/billion companies do to increase customer loyalty. You can do it your own (more cost effective) way.
Before I spill the beans on how to reward your customers, remember that you must be able to retrieve essential information from your customer you want to extend loyalty rewards to. This information is essential to continuously be effective with CRM. So remember when you extend your rewards, get your customers to give you information about them so that you will be able to trace their purchasing patterns, interests and preferred way of communication.
One way to reward your customers is by the number of purchases. It can be a simple card that gets stamped for each purchase and after a number purchases, they get a reward.
Reward for total spending is also a popular way to get customers to buy a bit more than they would normally do. It helps if you tell them ahead and with their loyalty card/registration they will be able to get a limited edition item when they purchase a stated amount of expenditure.
Give cumulative discounts by first taking into consideration their interests. In order for these programs to work effectively, the discounts or gifts given must be valuable and relevant to the customer. This gives them motivation to spend at your store.
These are just simple gestures to reward your loyal customers. It gives the customer reason to choose your store over the others and keep you ahead of your competitors.
Loyalty rewards are easily customisable with Xilnex. With a client list you can add your loyal customers into the system. You are also able to track their purchase history and make an estimation of what they tend to be interested in. Using any method presented above, you can reward them by customising these deals on the marketing section of Xilnex.
It’s time to reward your customers and let your customers bring in more revenue for you. Have you tried Xilnex? Try our 30-day free trial today and see how your profit can grow just by using our CRM loyalty system.