New customers are the lifeblood of companies aren't they? At incentivesmart™ we believe that new customers are just a small part of the story; loyalty is where the real money is. In this age of social connectivity, customer loyalty has become more valuable than ever. Consumers share stories of their interactions with businesses on social media, meaning that word-of-mouth marketing is especially valuable.
Since customer loyalty can be critical to making a sale, ask yourself what you're doing to cultivate it? When was the last time you spent money or resources on making your customers feel appreciated? Many might argue that a focus on customer appreciation isn't just a best practice -- it could mean the difference between failure and survival in today's word-of-mouth driven economy.
The objectives of customer loyalty programmes are usually simple: To increase sales and profitability by changing buying behaviour. There are, however, many other reasons loyalty programmes can be used drive your business; improving communications for example, or, increasing quality and product knowledge. Loyal customers are usually much less price-sensitive, are much less susceptible to competitor approaches, and can become a powerful advocate, going out of their way to promote and defend your company for free.
Loyal customers are an important driver of sustainable business growth. They're usually much less price-sensitive, can be nearly immune to competitive approaches and can become a powerful marketing arm, going out of their way to promote and defend your company - for free. 68% of lost customers lapse due to perceived indifference; they simply don’t understand why you are different or better than your competitors and, on average, it costs 20 times more to replace a customer than to retain one. When customers do feel valued they are 66% more engaged in your brand and incentivebank helps you to achieve this. As well as the core features of incentivebank there are a number Apps that help you to achieve increased loyalty. Often it’s the smallest of gestures that stand you apart and create a lasting memory; remembering a birthday or a special occasion, saying thank you for being a loyal customer or sending a personalised thank you.
incentivebank™ is proven to increase sales by 19.5% and customer engagement by up to 25% giving you a significant return on investment that is unparalleled in other marketing media. Incentivebank enables you to reward your customers however you prefer; for every purchase, for hitting targets, for percentage uplifts, for buying from multiple product categories it’s up to you. Incentivebank has the tools to individually or bulk award points to your customers and offers a number of Apps to help you process your sales data. You may wish to award points yourself or you may wish your customer to claim for their purchases. Favourites and personal goals can be set by your customers so that they can visualise and work towards specific rewards.
There is no doubt that discounting can provide you with a quick sale and occasionally improve overall sales. Discounting might help to boost sales and attract new customers in the short-term too, but from a strategic perspective it can have a negative impact on your product or service, your quality and your profitability. It is simple mathematics to see that company with a 10% net margin offering a mere 5% discount is damaging profitability by 50%, so the company has to sell twice as much to make the same profit but it is surprising how many companies blindly follow a discount or rebate strategy without really counting the cost to their business. Incentivebank has a compelling alternative by offering customers an added value proposition to your sale that, in most cases, can’t be matched by your competitors. The psychology of receiving something back for you should not be underestimated, just think about the people you know who go out of their way to buy more expensive fuel or groceries in order to earn their reward points; 77% of customer behaviour is driven by emotion rather than price.
The most effective sales team you'll ever find is enthusiastic customers. The reason is simple enough: customers aren't paid to praise. When a customer becomes a passionate advocate of your brand, it means you truly earned it. A loyal repeat customer is great but the next step is to transform that dedicated buyer into a missionary who spreads the word and converts their friends and associates into customers too. By building great word-of-mouth, you nurture an all-volunteer sales force that generates leads and boosts sales.Incentivebank promotes referrals and makes it easy for your customers to introduce you to people they know. What’s more incentivebank gives you the tools to easily track, monitor and reward those referrals.
Never underestimate the power of a disgruntled customer. They can wreak havoc because complaints upset everybody and, with these tools of Twitter and Facebook, they can get the word out quickly. Of course, fixing the problem is the first point of call but then you may want to go a little further and offer a gesture for the inconvenience, but what to give, a discount can be damaging and the wrong gift can further enrage the customer. incentivebank has the perfect solution to this problem; reward points are flexible and can be given as a tangible reward card, voucher or allocated directly to the customers account.
Feedback from your customers is vital to improve the performance of your business and yet t is surprising how few businesses really ask their customers for feedback and ideas. Many of those who do ask for feedback and ideas fail to action it and fewer still reward their customers for their vital input. Good feedback serves as a great motivator for your employees and poor feedback helps you to improve your business so you should encourage feedback of all types. incentivebank allows you to gather feedback from your customers, monitor actions and reward or compensate customers for their opinions.
Drive third party promotions from your suppliers and partners directly through to you customers. Incentivebank’s impressive communications tools allows you to drive channel promotions through to your users without the need for expensive marketing campaigns or, often diluted, word of mouth publicity.
A study by the Institute for Sales Promotion calculated that a 25% increase in customer engagement equates to an average 5% increase in operating profit but engaging with customers can be difficult, especially when you do not always have an opportunity to see them face-to-face. Incentivebank helps you to create meaningful two-way communications with your customers.
If you are interested in improving performance in any of these areas talk to us today about how we can work with you to achieve happier more profitable customers. Call the team on 0845 003 8765 or contact us online