Achieving Big Customer Loyalty in a Small Business World 10 Tips to Create A Killer Customer Loyalty Program
Jan 11, 2015
Achieving Big Customer Loyalty in a Small Business World
10 Tips to Create A Killer Customer Loyalty Program
1. Benefits of Driving Customer Loyalty
2. Trends in Customer Loyalty
3. 10 Tips for Creating Your Own Customer Loyalty Program
Benefits of Driving Customer Loyalty
It can cost up to ten times more to acquire a new customer than to retain an existing one
Benefits of Driving Customer LoyaltyThe Loyalty Effect: A 5% increase in customer retention can lead to a 25% to 100% increase in profit
Benefits of Driving Customer LoyaltyA loyal existing customer can be a brand champion and important source of new revenue
Becoming an entrepreneur has always been a lifelong dream. I’ve experienced much success throughout my journey, but my first repeat customer was the biggest milestone as a small business owner; that repeat business gave me the confidence and hope that my business would thrive.
– Carol Todorovich, owner of Healthy Café Creations.
Trends In Customer LoyaltyOn the rise – focus on repeat customers
Trends In Customer LoyaltyOn the decline – spending time and money on customer acquisition
Trends In Customer LoyaltyBecause of this shift, customer loyalty programs are starting to gain traction in the small business community
Our Crepe company uses a digital punch card reward system powered by Square to reward repeat customers and build a loyal customer base. Because it costs more to gain new customers than retain existing customers, we felt it was important to implement a customer rewards program to make our existing customers feel appreciated. Our customers earn $5.00 after 10 times of spending $10.00 or more. This is a low-cost way to reward customers who enjoy our crepes on a regular basis.
– Richard Foote, CEO, Oregon Crepe Company
So, Where to Start?
Start with the End in Mind Start with the desired outcome in mind
Clearly define their goal
Be specific and measurable
Tip 2: Determine Your AudienceDetermine who will be eligible for the program
Be targeted
Reward the ideal buying behavior
Tip 3: Create an ROI-Positive Program
Determine the loyalty program structure
Set this up at the onset
Lay out multiple programs
Do the math
Tip 4: Encourage Customer Opt-InGive customers multiple options for joining
Track your opt-in list
Manage future communications
Tip 5: Automate, Automate, Automate
Automate to manage and maintain
Automation doesn’t reduce personalization
Personalize service for a competitive advantage
Tip 6: Stay In Touch Via EmailEmail to kick-off a loyalty campaign
Create a steady stream of communication
Use templates to reflect your brand
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Tip 7: Go SocialEngage existing customers on a regular basis.
Understand where your customers prefer to engage
Build through varied & continuous content
Tip 8: Get IntegratedIntegrate with services like apps
Automate email, mobile, and social
Track customer activity
Tip 9: Get MobileUse mobile apps to reward customers for positive habits
Use mobile numbers to track and distribute rewards
Connect directly to Facebook and Twitter
Tip 10: Be Consistently EngagingRemain visible with consistent and relevant communications
Target communications to customers’ interests and preferences
Use CRM to manage customer information to create personalized communications
Customer Loyalty:A tremendous opportunity to increase the value of the majority of your business — existing customers
Questions?