5 Surprising Truths About Loyalty Marketing
If you own a brick and mortar business, you’re very aware of the importance of a loyalty marketing solution. But in order for it to stand the test of time, it must do two things: Offer immediate gratification and long-term value for your customers. Consumers have eagerly downloaded apps and signed up for rewards programs, yet they’ve quickly realized that some loyalty programs aren’t as great as their sign-up offers suggest. That’s why loyalty marketing programs that keep customers engaged (whether they’re a first-time visitor or a loyal regular) deliver the most impressive ROI. Take a look at 5 Surprising Truths About Loyalty Marketing you’ll learn after implementing a loyalty solution.
Loyalty Marketing Increases Revenue
Research from Bain and Co. showed that a 5% increase in customer loyalty can result in more than a 25% increase in revenue. This is fantastic news considering that it can cost five to seven times more to acquire a new customer than to keep an existing one. Businesses with digital loyalty programs already have an advantage because they can use the backend-marketing tools in their loyalty program to bring their customers back in. Since a repeat customer spends 67% more than a new one, activate email and mobile app communication to drive frequent, repeat customer visits to increase revenue.
Re-marketing Might Be Creepy But It Works
Collecting the right customer information is beneficial for the long-term success of your loyalty program. With customer demographics at your fingertips, you can cross-sell based on their interests and purchase history. For example: If you know some customers in your loyalty program are purchasing a particular brand of beverage, you can email them when a new flavor launches. Send them an offer for a free drink directly through your loyalty program as a way to entice them to visit your store. While it may seem creepy at first, think about it: these customers have opted into your loyalty program, therefore they want to know what’s happening within your walls, especially if it’s for a product they’ll love.
The Right Loyalty Program Does Improve Customer Retention
If you give your customers enough of a reason to return, they will! Since launching their loyalty marketing program, Capital City Cheesecake in Maryland has seen a 15% increase in customer visit history. Plus with these loyal customers visiting 2.2 more times per year, they’re driving additional revenue for the business, too.
Your Loyalty Program Can Stand On Its Own
Here’s a little secret: Your loyalty program doesn’t need to integrate with your POS. It can still be just as successful standing on its own! Loyalty and marketing solutions like Belly can provide all of the customer data you want. As long as you can collect who is visiting your business and how they’re engaging with your program, you can use that information to learn what your customers want. Monitor your most redeemed rewards and offer them for free to lapsed customers as an incentive to bring them back.
It Can Take Up to 6 Months To See Program Results
Patience is a virtue, friends. It can take as long as six months to see the return on investment after implementing a loyalty program so don’t try to rush it! Your customers need time to join your program and visit to earn points. Be sure to take into account your customers’ typical visit history too; do they regularly return each month or span their purchases out over longer periods of time? If you and your staff make an effort to sign up every customer to your program, you’ll be able to see and track positive results even faster.
Now that you’ve got a loyalty marketing solution in place, don’t be afraid to use it! The sooner your program can provide both long-term value and instant gratification, the sooner your business will be able to attract and retain every customer.
Jenny Beightol is the Director of Words & Reputations at Belly, the leading digital loyalty, and marketing solution for businesses. Her expertise in brand identity and customer loyalty comes in handy when playing the “Loyal Brands” edition of Trivial Pursuit. When she isn’t writing, she can be found in Chicago running along the lakefront trail, dancing at a concert or running to a concert she plans to dance at. Tweet her what you’re listening to here.
Filed under: Loyalty Marketing