See those customers walking around your store? The ones buying your goods, ordering your food and keeping enough money in your back account to pay for Netflix each month?
Here are two things you need to know about them:
- There’s always a cost to get customers through your door. You might not recognize it at first, but customer acquisition cost (CAC) is a real thing.
- Every customer is determining right now whether or not they’ll return to your business.
As a business owner, you already know that it’s five times more expensive to acquire a new customer than to keep an existing one. But there are some other facts about your customer base that you might not be as familiar with. And, they make a pretty powerful case for why a loyalty marketing program may be just the thing you need.
First, The Numbers
According to technology research firm Gartner, 80% of your company’s revenue comes from just 20% of your customer base. Further research from Bain & Co. tells us that increasing customer retention by five percent can lead to a 75% increase in your company’s profitability.
Put another way, your loyal customers – the ones you see every day and know on a first name basis – are your bread and butter, the knife that spreads that butter, the plate holding the buttered bread, and the glass of milk you’re drinking to wash it all down.
Loyal customers are everything. So it needs to be your mission to keep them happy and to make more of them.
One of the best ways to do this is with a loyalty marketing program.
Getting Engaged Means More Than Just Popping the Question
Loyalty marketing will increase revenue from your existing customers in three main ways:
- You’ll reward customers for shopping with you.
- You’ll encourage extra spending when customers redeem their loyalty points.
- You’ll keep in touch with your most loyal customers and bring them back again with in-store specials, discounts and promotions.
Or, if one word explanations are more your style: engagement.
Rewarding customers for shopping with you is a no-brainer. Of course they come to you for your charm and incredibly good looks. But, the 25 points they get for ordering a sandwich entices them, too. In fact, they probably know exactly how many points they have and just how many they need to get the reward they’ve got their eye on.
When customers do come in to redeem those points, very few simply get their reward. If you run a restaurant, they’ll most likely order sides and a drink. If you run a clothing business, they will buy accessories.
The point is that you don’t even need to upsell – your loyalty marketing program is upselling for you.
But, you need to stay on their radar. The email addresses you collect and social connections that you make through loyalty marketing signups will allow you ensure that your most loyal customers know when they can get the best deals. They’ll learn about exclusive promotions and new products first and be the first to pass through your new sales funnels, creating new revenue streams.
Don’t be afraid to send a promotional email to the customers you haven’t seen in a while. Remind them that you exist and give them a reason to come back.
The Whole Enchilada (Redeemable for 350 Points)
So there you have it. If you already have a loyal customer base, then cement that relationship in place with a loyalty marketing program (of course, we’re pretty partial to Belly). What was that statistic again? 75% increase in profitability from a five percent increase in retention?
Request a demo today to find out what Belly can do to drive more activity (and revenue) from your loyal customers so you can work on creating even more of them.
Ready to see how Belly can work for your business? Request a demo.