80% of your business’ revenue comes from just 20% of your customers, and it costs your business 6-7 times more to attract a new customer than it does to keep an existing one. Taking a look at these statistics, the importance of establishing a customer base and learning what it takes to satisfy them is crucial in not only increasing your revenue, but also in saving your business money.
1. Create a Loyal Customer Base
Creating a consistent customer experience is essential to customer retention; it establishes their trust in your small business to deliver quality and satisfaction each time they visit. Not only do customers expect a consistent experience each time, they also expect to be rewarded for their loyalty to your restaurant or brand. By creating a loyalty rewards program that is both simple to understand and clear in what the customer receives when they make a purchase with you, you entice them to revisit your business again in the future.
Considering that almost half of consumers are using loyalty programs more than they were two years ago, it’s safe to assume that loyalty programs are a huge factor in overall customer satisfaction, as well as a great indicator as to what customers want, and even expect from your business. In order to not only attract new customers, but also turn them into regular ones, your business needs to ensure that it can deliver what the customer wants out of their experience with you – and that includes a rewards program.
2. Implement Incentives
69% of consumers said rewards make them more likely to spend money with a particular brand, and 90% of consumers said they would sign up with a fast food or fine dining restaurant if they were offered a customer loyalty program.
Incentivizing customers to purchase your products by placing a reward on them helps the customer justify the purchase; when a customer feels like they’re getting a greater return on their investment with your business than they would purchasing from another, it makes the decision to spend money with you much easier – and may even lead them to spend more. By rewarding your customers for spending money with your restaurant or small business, you give them the peace of mind that they’re getting the best deal in the long run, which will ultimately lead them to choose you again in the future.
3. Keep Up with Your Competitors
As the popularity of loyalty and rewards programs continues to rise, it is imperative to keep up with your competitors and ensure that your customers get the greatest reward by purchasing from you. The demand for a competitive loyalty program is greater than ever before; almost half of customers agree that it would be easy to replace a program with a competitor’s program if it gives them a better reward. Considering there are 2.6 billion active loyalty program memberships in the United States, your customers have a lot to choose from. By keeping your program competitive and rewarding your customers frequently for spending with you, you ensure your business to be the first pick among consumers.
To find out how SinglePlatform can announce your small business’ loyalty program across the web, click here.