What’s the value of loyal customers? According to a study by Yotpo, loyal customers offer a brand three key benefits:
- They tell friends and family about the brand (60%)
- They are willing to join the brand’s loyalty or VIP program (52.3%)
- They spend more on a brand’s product even if there are cheaper options elsewhere (39.4%)
Not only this, but HubSpot has found that existing customers spend 67% more than new customers.
Keep your customers, make more money. It’s that simple. Optimove, reporting on the Yotpo study, put it this way: “The power of customer loyalty is so vital, its effects could mean the difference between your business either thriving, just about surviving, or breaking down completely.”
Optimove went on to suggest three ways you can show your appreciation and keep those customers around.
1. Let them know that you reward loyalty.
Regardless how you reward loyalty, it’s critical to let your customers know that you do. Don’t make them wait to find out. Promote your loyalty program in your direct mail pieces. Create a “loyalty” link on your website. In your print and email newsletters, talk about real people who have saved money and earned free stuff.
2. Create and promote multi-level incentives.
Tier your rewards so that the most loyal customers get the most benefits. The more loyal they are, the more they save, the more they earn, and the more insider benefits they get. Also consider creating a sense of competition. “Enable your customers to compare their scores, points and/or rankings with other customers,” says Optimove.
3. Re-engage disconnected customers.
Don’t assume that lost customers are gone forever. There can be many reasons they have stopped buying, many of which may have nothing to do with them falling out of love with your products. Sometimes, all it takes is a nudge and an incentive to get them to come back.You’ve worked hard to gain your customers, and they are worth keeping. Make the investment in your customers and they will invest in you.