Every customer who has made a commitment to buy from you repeatedly deserves a special treatment. Rewarding them not only makes them feel that they are special to you, but also increase the chances they will purchase from you more often. Here are few ways you can reward your customers:
- Points and cashback
- Multi-tier membership
- Birthday treats
- Sending reminders at the right time
- Provide added value to your customers
Rewarding your regulars demonstrate an act of care, put a big smile on your their faces and have them coming back to your business again.
A customer’s loyalty is their voluntary willingness to interact or purchase from a specific company regularly. This loyalty can emanate from a number of things; mostly, it is the customer’s desirable experience with the business or a brand that increases their odds to make repeated purchases from the brand.
The importance of loyal customers stems from the data that a loyal customer spends approximately 67% more on products and services than new customers. Hence, even though the loyal customers make up to 20% of your audience, they bring up to 80% of the business revenue. Moreover, it is five times easier to retain a customer than gain a new one.
This is the reason companies focus largely on their regulars, understanding their interests and dislikes. Loyal customers will continue to buy from the business and spend more over their lifetime than others.
The Reebok Experience
Just like every other popular brand, Reebok has its own way of rewarding its customers. While Starbucks rewards mostly with gifts, Reebok found an alternative method that is less costly and effective. This sporting goods company gives VIP experience, training and wellness program, partner rewards, and much more for every purchase they make over an interval of time.
The company grasps the importance of loyal customers and members even get points for their every transaction and interaction with the brand. As the points gradually accumulate, the rewards also increase. The brand even goes as far as to provide access to partner events and product releases.
Rewarding Customer Loyalty
Rewarding customer loyalty is a small step in the larger growth of your business. Your excellent services and experience are always rewarded and recommended by your customer, fruitfully. There are a number of ways you can reward customer loyalty.
1. Points and Cashbacks for Loyal Customers
The classic way to reward customer loyalty is to give cashback and points on their purchase and interaction. You can offer cashback to the customers after a certain amount of transactions or purchases. Customers can earn the extra advantage of getting a return on their spending and the additional perk that it offers over a period of time.
Giving points on a regular basis can encourage customers to continue shopping with you and gain more points. In fact, you can make points collection like a game where there are levels of exciting prices/gifts that the customer can redeem once they collect certain points.
If you are an F&B or a retail business, points or cashback are made for you!
2. Create Multi-Tier Membership
Creating multi-tier membership as a mode to reward customer loyalty can be beneficial for both the customer and the business. You can create a free membership at one level, and other levels can be paid versions with extra perks and benefits. If you are new to these multi-tier memberships without any social testimonials you can begin with a free membership at the beginning for potential customers to gain their trust.
A multi-tier membership program gives you an opportunity to reward your customers based on their spent. The more they buy from you, the more rewards they get. Multi-tier membership is an excellent fit for service-based businesses such as spas, beauty parlors and hair salon.
3. Birthday Treats
Showing your customers that you care goes a long way to bring them back to your shop. Peek into your customer data and make your customers feel special on their birthday or their birthday month. Many brands now provide birthday offers to their customers and have them visiting their shop/service center frequently. So, if you are not giving birthday treats yet, you might be missing out!
According to an internal survey, special offers on the birthdays can bring up to 66% customers back to the businesses.
4. Sending Reminders at the Right Time
Sending reminders to redeem offers, avail of amazing discounts, and what’s new in the market is a part of a loyalty customer program. Your customers wouldn’t want to give up their points or fail to avail of discounts just because the offers expired. Hence, it is very important to send reminders at the right time.
Simple text messages that reminds customers to use the cashback before it expires can bring back up to 33% of customers. In order to redeem this cashback, they will spend more at your business. Hence, reminders play a very important role complete the cycle and generate more sales.
5. Give Value to Your Customer
Everyone wants to feel valued and cared for. What do you have that others don’t? Ask yourself self-introspective questions from a customer’s perspective. Questions like would you choose this program or membership? Is the experience satisfactory enough? Am I valued here? Why should I choose this and not the other program?
These valuable questions will help you set apart in customer loyalty and help you grow your business. Making your customers feel welcomed should be your priority. In this competitive world, the only thing that can keep you at the top is to provide something that others don’t.
For example, if you are a gym, you can add value by sharing healthy recipes with your customers. A pet-grooming business can share more information on how to take care of the pets at home. The enriching information once in while not only makes your customers feel that you care for them, but also keeps your brand on the top of their minds.
Excellent customer service goes a long way to show the customers that you care. In return, these customers will become loyal members of your business. You can build a relationship with your customers. Loyal customers recommend your business to friends and families. The word of mouth marketing and loyalty customer programs go hand in hand. Hence, building a relationship with your customers can become the biggest source of generating leads.
Rewards and money backs are not the only way to make your customers feel good. You can plan exclusive experiences, limited vouchers, rare discounts that are otherwise not available to others to run your customer loyalty programs.