A good customer loyalty programme can help your company create significant recurring revenue by increasing the return on your marketing and sales expenditure.
Here are some facts to consider:
- It costs up to five times less to keep an existing customer than acquire a new one.
- It’s easier to persuade an existing consumer to buy from you again and buy more.
- In most cases, 20% of a company’s revenue is generated by 20% of its consumers.
Is a loyalty programme appropriate for your company?
It would help if you first determined whether a customer loyalty programme would be beneficial to your company before implementing it.
The first step is to figure out how much a customer is worth to your business and how much it costs to acquire one. This will aid you in deciding whether to spend more money on developing new clients or retaining and expanding existing ones.
A customer’s worth is the amount of money they spend with you. You will almost certainly increase sales to customers at a reduced cost if you have a thriving customer loyalty program. If you have decided to create a loyalty program you can check out, the customer loyalty program by Blokchi.
How to Create a Customer Loyalty Program
- Research your current clients.
Here are some inquiries to make regarding each client:
- In a year, how much does this consumer spend?
- What things do they buy, and how often do they buy them?
- Have they been customers for a long time?
- Do they work with any other vendors, and who are they?
- Is it possible for us to sell them additional items?
- What percentage of their purchases do we profit from?
- How quickly do they pay you?
- How can we make our business connection better?
- How happy are they with our service?
Get the Loyalty Program for Your Customers
It would help if you examined your consumers’ current level of happiness before implementing a loyalty programme, using approaches such as surveys, interviews, and tracking customer comments.
Then, choose personnel who are good with clients and will be willing to engage in the programme. You should target clients who buy from you frequently but may become more profitable according to your data. This scheme is generally not advised if the buying cycle is long.
Set objectives and track them with a CRM.
Set your program’s objectives from the start. Set a goal of 3.3 purchases each year if your clients buy three times per year. You can raise your revenue by 10% with only a few more costs. To manage this programme, use CRM software. If you’re seeking a low-cost or no-cost CRM solution, take a look at this list.
Create a budget
Create a budget for customer retention and another for acquiring new consumers. Consult your industry average to do so, and if you want to grow faster than the average, boost your budget appropriately.
Choose the clients you want to target.
Based on the initial study’s findings, assign your clients to one of three categories (A, B, or C) based on evaluation criteria that are tailored to your needs and objectives.
- Purchases in volume
- Possibility of purchasing additional goods and services
- Speed of payment
- Profitability of customers
- Over time, loyalty
Select strategies that will entice them to stay with you.
Select loyalty-boosting strategies that are tied to a customer’s purchases and the quality of your company connection. Some instances are as follows:
- A salesperson will visit you once a month.
- The vice president of sales pays an annual visit and has a business lunch with him.
- The president personally invites you to a presentation and dinner.
- Guaranteed premium service 24/7
Additional discounts are available when certain purchasing milestones are met.
An annual event is being sponsored.
If your consumers are businesses, there’s a strong chance you’ll benefit from this type of promotion. However, just because you have a customer loyalty programme doesn’t mean you can ignore new business development. Increasing your portfolio of loyal customers is a never-ending task.
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