Have you heard of loyalty marketing? Even if you haven’t directly, you will have unknowingly. For example, the Tesco clubcard is a form of loyalty marketing as it rewards customers who frequently spend within the store or online. The concept of loyalty marketing is based on idea of keeping customers onside by building relationships with them for the long-term. It has been shown that businesses who adopt this way of thinking are more likely to grow as a result. Business Link says that “it costs up to 10 times as much to win a new customer than to keep an existing one”. This sentiment, is one I agree with, and one that is echoed by Pareto’s Law which says that 80% of business comes from 20% of customers.
Even though this is a big concept, small businesses can replicate this tactic in their own marketing. Loyalty marketing is also closely associated with cross selling. To find out more, read on here. So what can your business do?
- offering discounts – restaurants do this a lot to entice customers in and keep them coming back. Shops do it too. These discounts can be sent via text, email or direct mail.
- loyalty cards – the Tesco clubcard is a perfect example of this as is the ones offered by coffee shops who give out free products after a fixed number of visits.
- hospitality – department stores sometimes offer pre season or pre sale open events to loyal customers giving them a chance to buy before the general public. events like this can do wonders for your sales as well as improving your profile and t and in raising general awareness. Find out more about overcoming the headaches of a live event here or sign up here for updates. (Please note that this site refers to Christmas events, but it actually covers all types of business events).
- first impressions – make a good impression. whether it be via your website or business card, first impressions count.
- reciprocal discounts – team up with other related businesses to offer a joint deal for example, tube tickets and tourist attractions.
- saying thank you – thank customers for their business and treat new and potential customers well via your email marketing.
To keep your customers, keep on reading my blog ….