When looking to grow your business, it typically comes with a concentration on customer acquisition. However, retaining customers and developing loyalty cannot be overlooked. With this in mind, let’s take a look at promotions to drive customer retention and loyalty, and the benefits this can bring.
Rewards and Bonuses
Exclusive offers have long since been a tried-and-true method of attracting and retaining customers. That said, whilst some focus more on new customer bonuses or welcome offers, it is important to also reward existing customers for sticking with your brand. Take something like online casinos, for example – whilst offers such as free spins, deposit bonuses, and weekly slot rewards can draw new customers in, platforms also provide things like free bingo for existing customers.
Players simply log in during certain hours of the day and can play live bingo games without making a deposit, but can still win a cash prize. This rewards customers for playing through the platform both with the gameplay and rewards alike. This same logic can be applied to many other industries, such as free shipping for loyal customers or discount vouchers when you spend over a certain amount. This makes the customer feel valued, whilst also encouraging them to continue with their purchasing.
Loyalty Programmes
This might be the most obvious point – the clue is in the name – but it remains to be one of the most effective ways to foster a sense of loyalty. In fact, loyalty programmes are so popular that 80% of Brits hold at least one loyalty card, 20% of which have four or five cards, whilst 14% have six or more. Now, loyalty programmes come in different shapes and sizes – they can be as complicated or simple as your business requires.
For example, for nail salons or coffee shops, a simple stamp card is a great loyalty programme. Customers get a stamp for every purchase, and once the card is filled they get one for free. For other businesses like retail stores and supermarkets, points-based loyalty programmes are a good consideration, allowing customers to collect points as they shop, and exchange the points for a monetary value. Other loyalty programmes also offer exclusive discounts for their members.
Create Brand Ambassadors
Whilst one benefit of having loyal customers is repeat purchasing, another benefit is that they become brand ambassadors. What we mean by this is that, because you have fostered a two-way relationship and loyalty, customers are more likely to tell others about how great you are. Despite the digital transformation, word-of-mouth marketing remains the most trusted form of advertising. In fact, 92% of consumers trust recommendations from family and friends above all other adverts when making a purchasing decision.
Of course, this can also go two ways – to encourage loyal customers to become brand ambassadors, you can reward them for conversions made from their recommendations. For example, if someone signs up for your service or makes a purchase, both the new customer and the one who made the recommendation could get an exclusive offer, discount, voucher, or another form of reward, incentivising the recommendation process.
And there you have it – just a few promotions to help you drive customer retention and foster loyalty. As you can see, not only can this keep people coming back, but it can also help your acquisition too.
