Increasing Small Business Profits Referrals and Loyalty Rewards
Wednesday, Jan 18, 2017
Many businesses spend part of their budget on marketing and advertising to generate sales. What they seem to sometimes forget is to focus on retaining customers. New customer comes in, makes a purchase, and has a great buying experience. What is the guarantee that your customer will return to your business versus Bob’s store down the street that carries the same products?
Providing excellent customer service sometimes just won’t be enough. Creating a program to reward your customers for being loyal to you is key. It must be enticing, simple and easy to track. There are many programs and apps that are available to help your business launch a loyalty program, such as 5Stars.com, LoyalTap, LoyalBlocks, and Swipely to name a few.
Returning customers will spend more money during a visit than a first time customer. Your returning customer already knows what to expect as far as quality of the product, price, and customer service. Creating a Loyalty Program for returning customers will cost you less than you would trying to generate new business.
The program can be as simple as giving them the ability to build up a credit towards a future purchase such as a free meal, service or big ticket item. The credit can be a percentage of their total purchase or simply after 10 visits a free item. Remember that your product is potentially available with your competition, and this will ensure that they will come back to you.
Now that you are rewarding your customers for their loyalty to your business, let’s utilize their ability to advertise for you. It’s nice to watch a commercial and think, “I should go there or I should buy that.” Nothing pushes you more than hearing it from a family, friend, or neighbor. Customers will always trust the words of someone they know more than the hired actor in a commercial.
They will hear the great experience and/or the quality of a product and be instantaneously motivated to make a purchase. Be sure to encourage your customers to tell their friends and family about you and your business. Again, the cost to generate new business from a customer referral is far less expensive that advertising to generate new business. You can even go the extra mile and offer an incentive for every referral a customer sends to your business and makes a purchase.
Focus on the customers you have and they will generate new business for you.