As a business owner, it is natural that you are always looking on the lookout for new ways to improve customer experience. Increasing customer retention ensures that you have sustained income in the long run which is important for any business.
Mastering customer brand loyalty can be challenging, but with the right tools in place, you too can make sure that you keep your customers hooked to your brand! Customer rewards & loyalty programs are often overlooked aspects of customer experience but they are an integral part to keep your customers invested in your brand.
For this article, we will share with you statistics that show how a simple loyalty program can do wonders to your business:
We all know how difficult it is to acquire a new customer to make a purchase from the business. It requires a whole lot of effort from various offline to online channels and involves a team of marketers, time, and dollars. However, based on our experience with Singaporean brands, many businesses still primarily focus on acquiring new customers.
Here is a fun fact: The probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is 5% to 20%. This means that it is much easier to sell to an existing customer that has tried out your product than it is to sell to a new one that you have just acquired.
Not only do loyal customers make purchases easily, but they also tend to spend more and are more open to high-ticket purchases. This is because they have experienced your brand and have started to trust and like your brand.
9 out of 10 customers will become loyal to a brand, preferring one over others. The question is: What can you do to make them stay on and remain loyal? It is by showing them appreciation and creating resonance with them. Creating a loyalty program and a membership while staying true to your core values is the way to go.
In this time and age where your consumers are bombarded with countless content every day – including those from your competitors – having customers who will not waiver and remain loyal is an irreplaceable asset for every business owner.
Why is Advocado always talking about loyalty programs? This statistic will tell you one of the reasons why. A loyalty program promises more value to the consumer, in addition to your suite of products/services. Hence, a loyalty program is key to convert ‘prospects’ to ‘customers’ to ‘regulars’ and eventually ‘advocates’.
Once your customers have turned into regulars, they will likely refer your brand to their acquaintances – indirectly assisting you to increase your brand exposure and potentially your customer base as well. Why is this so?
Our experience with brands have shown time and again that word-of-mouth is the best form of marketing as people are more likely to trust their friends and family compared to reviews or ads seen online.
With that said, a high likelihood of these new prospects will be interested to experience your brand for themselves, which starts a chain reaction of new customers and existing customers.
Now for some interesting and eye-opening statistics with regards to loyalty engagement:
Having a loyalty program is good, but making sure that your customers can access and utilize it easily is what makes the difference. With the adoption of technology today, customers want a fast and simple way where they can earn rewards without carrying any cards or physical vouchers. Even in Singapore, many businesses have found web-based applications to be a good solution as they are completely digital and do not require customers to download any apps or keep any physical copies of cards, vouchers, etc
Take Advocado for example. Customers can easily become members of their favourite brands within seconds by simple keying in their mobile numbers. Once the mobile numbers are recorded, they will be able to start to enjoy the perks offered by the membership program or loyalty campaign which they have signed up for.
Signing up for a loyalty program is one thing, making sure that your customers utilize it to the fullest is another. To ensure that your customers consistently make use of a loyalty program, many loyalty solutions providers today such as Advocado offers an automation function, where you are able to program the system to send out SMS notifications, reminders, and updates to customers. In fact, according to Loyalty360, 95% of customers like to receive reminders, alerts, and notifications about new offers and rewards expiry. You can easily do that using a Marketing Automation Bot.
In the same study conducted above, Loyalty360 also found that 4 out of 5 people are more likely to engage with a brand that offers incentives for staying loyal. Feeling appreciated and rewarded goes a long way in making sure that your customers find the effort worthwhile, creating long-term stickiness.
We have shared so many statistics and studies that have shown the effectiveness of a loyalty engagement strategy that is well thought out. However, if you are still on the fence on whether your should start implementing a loyalty program for your business, here are two statistics that will let you see why you should start having a loyalty engagement campaign active if you haven’t:
Did you know that increasing customer retention by a mere 5% gives you the opportunity to boost profits by 25% to 95%? Still, only 16% of the companies focus on customer retention. This means that you should strike while the iron is hot and get a loyalty engagement program up and running immediately to reap its benefits and boost your profits!
According to Markinblog, 65% of a brand’s business comes from existing customers. This by itself should spell out the importance of keeping your customers engaged and loyal.
If you are interested in implementing loyalty campaigns that will work wonders for your brand, don’t hesitate to speak to our Loyalty Experts. We have worked with over 100 brands across Singapore to improve their customer retention efforts by leaps and bounds, which means it is safe to say that we know exactly what we are doing, and how we can help you.
Award-winning Cloud Loyalty Software for your business, Multi Award Winning Cloud Loyalty CRM