Statistics still show that it costs a business about 5-10 times more to acquire a new customer than it does to sell to an existing one. On average, those current customers of yours spend roughly 67% more than the new one. So, what are you doing to keep your customers coming back to your business? If you are a business owner that only dream to achieve the results, that of larger corporations, you can – your business will implement a loyalty program.
Many loyalty programs have been designed over the years, but if not designed right, to achieve desired results, businesses just continue to lose money on time and effort into the design, and customers get no more value from the businesses to which they are loyal. One third of loyalty programs go un-redeemed by consumers.
How many loyalty programs have you gone?
“Where do I sign up?”
Or better yet, when asked “Do you have a rewards card?” you’ve discovered you don’t and wanted to learn more, take that extra 10 – 15 minutes of your time and sign up there on the spot?
For me, I turn a blind eye to many of these things because (in my experience) quite simply, getting a $2 discount when I spend $50 or more just isn’t exciting me. And for the most part, loyalty is so diluted, it’s a term thrown around so loosely no one knows what loyalty really is anymore.
Time to reign it back in ………………………………
In our programs at Coterie – through my experience as a customer, researching customer trends – we look at what loyalty program works for businesses specifically, how you can keep your business out of that one-third segment of unsuccessful – mediocre – programs, and how you can design enough additional value in your programs to keep your customers coming back.
It is important not to adopt the ‘one size fits all’ – ‘cookie cutter’ approach – and get to know what makes ‘your customers’ tick because in the end, what a business is doing down the road – across the state – might work for them but be of no interest to your money spenders.
To stand out in your market, it is ideal to create the feel of a community to your customers. A great way to promote your loyalty programs, instead of selling, offer your customers a range of loyalty options.
“An ounce of loyalty is worth a pound of cleverness.” – Elbert Hubbard
Key points for building your loyalty program:
- Brainstorm some ideas with your team, particularly your floor team as they are the eyes and ears of every day operation
- Target 5-7 of your best customers and ask for some feedback or ideas (what would they like to see)
NOTE: Don’t just expect your customers to give you their time, open up a win:win. Perhaps offer them a beer, a 10% voucher, glass of wine with their next meal. Respect their time and they will respect yours. And use this time to open up a ‘partnership’ with them encouraging this behavior
Be Active – just start testing and measuring what does and doesn’t work. The longer you try to make it perfect before launch, your customers are already at another venue!
It must be perceived VALUE. There’s nothing worse than being offered a boring loyalty incentive, or an incentive that is completely unobtainable
“Huh? I have to spend $200 to get $10 off my next purchase?”
Have fun with your loyalty program because there are no rules, there are no boundaries – this is your place and your customers’ playground ………. make it uniquely yours!
My favourite Carrie quote (yes, that be me) – “Creativity has no boundaries”
Throw out the phrase “Loyalty Program” and make it a name unique to your business that creates a sense of belonging – community – exclusivity. Remove the ‘us’ and ‘them’ feel and make all your customers feel like they are part of the same family.
- (Hospo Business Name) Squad Member
- Team (Hospo Business Name)
- Beer Lover Program
- Wine Connoisseur Club
- Our Favourite People Club
I hope you were able to take away some points of value and start to build on the foundation that is already in placeor implement some new ideas and strategies straight away in your business.
I’d love to know your thoughts – experiences – or any questions so please do drop them below so we can have a chat.
Thanks for your time and reading …..
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