A loyal customer isn’t simply influenced by price or availability in their buying decisions. They instead often prefer familiarity, perceived value, and timely offers relevant to them.
According to the Harvard Business Review, loyalty leaders grow revenues roughly 2.5 times as fast as their industry peers and deliver two to five times the returns over the next 10 years.
In our digital-first world, loyalty looks different. The old way of doing business is just that, old. Consumers can buy their luggage, book their trip, order their dinner, and check reviews on their plumber all from the familiar and trusted device in their pockets. Businesses today need to personalize their customers’ digital experiences. Their engagements need to be focused on simplicity and “no touch”.
Businesses must find the right tools to both engage current customers and attract new customers. The proper tools are affordable for the business and easy-to-use for both the business and their customers. The business needs to be able to communicate their current promotions, measure customer engagement, and drive loyalty quickly and easily. A customer needs to be able to use the tools to easily find relevant offers, earn and redeem offers, and emotionally connect with their favorite businesses.
Relevant and timely customer engagement and behavior data is among the most valuable tools for a small business. Easy-to-understand actionable data allows a small business owner to target meaningful offers and rewards that maximize impact with their customers. New privacy laws are making the collection of data more expensive as third-party tracking is phased out. Access to affordable first-party data allows the small business owner to remain competitive with their larger counterparts.
There are multiple reasons why nearly every major brand has their own loyalty program. Loyalty programs increase revenue, generate valuable data, provide direct communication with consumers, and provide a platform to personalize a brand’s messaging. The benefit of loyalty programs and their popularity are at an all-time high.
Competition for consumer loyalty is fierce, and customer retention is not easy. Many small businesses have been negatively affected by big box and global online brands. If a small business attempts to compete with a national brand, they must often sacrifice profits and operate with slimmer margins. Business owners need a well-designed, cost-effective loyalty platform that is easy to setup and use. The challenges of retaining a customer base can be overcome with the right tools in a small business owners’ hand.
According to data curated by Harvard Business Review, onboarding a new customer is between 5x and 25x more expensive than retaining a customer you already have. And with a simple five percent increase in retention rates, you can grow profits by 25 to 95 percent.
A business needs to have an automated communication plan that can build trust over time with the consumer. The plan needs to reward loyalty and deliver meaningful value. Effective loyalty and marketing messages should be personalized to meet consumer needs. A small business that executes a strategic messaging plan will acquire new customers faster and retain them longer.
Statistics have shown that businesses that relate with their customers more than 10x a year have 300% more profit than those that lost contact with their customers.
It can be overwhelming for a small business to compete in today’s marketplace; however, the recent pandemic has created a renewed focus on supporting local business. The cries to support community owned and operated businesses have never been louder. The problem is finding affordable tools that can effectively drive consumer loyalty.
An effective loyalty program must focus on strengthening customer relationships. The program should be simple and personalized. Set goals for your program and then market it through multiple channels. The best reward programs include loyalty points that offer value to the customer. A customer that stays frequently engaged by earning and redeeming points will increase sales and lead to a deeper connection between you and your customer.
A referral program is often confused with a loyalty program. Although the programs have many similarities, they target and achieve different goals. A loyalty program is designed to reward a businesses’ current customer base and encourage increased repeat spending. A referral program is designed to attract new customers. A good referral program needs to include everything highlighted for an effective loyalty program; however, there are a couple of additional tools needed to ensure success. You must make it easy for your advocates to refer new customers and reward the advocate every time there is a successful referral. If done correctly, an increase in communication and gratitude to advocates will return tremendous value to your business.
As a small business owner, you must prioritize your time. While you may realize how vital it is to have a loyalty program, developing a comprehensive program often requires assistance. Investing in a program that makes it simple for you and focuses on engaging the right customers in your community can help you reap the benefits with a lower level of effort. Try an app like the one recently introduced by loyalty industry experts, Klosebuy. As soon as you add your business to the Klosebuy platform, your customers AND locals in your community can see your advertisements, earn points, and share your offers on social media.
The platform also includes access to a marketing and loyalty management portal that delivers instant analytics on your offers with first-party data. This allows you to adjust messaging and amplify communication with the right audience.
Make your loyalty efforts easier and increase engagement in today’s competitive marketplace. Try Klosebuy FREE for 30-days and receive a 20% discount ($39.95 per month). For those business seeking additional support, Klosebuy experts are available to aid in creating and implementing your personalized loyalty program ($199.95 per month), with Klosebuy Managed Service.
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