Customers are the most important voice for the businesses that they frequent. Most businesses often think about what they should be doing to keep their customers coming back to their business. Often, the first solution is a loyalty program.
But it should be important to keep in mind that loyalty programs are not designed just for big businesses to use as a building tool. A well-designed program can help any sized business, or non-profit organization, aspire to reach new heights.
Loyalty programs should also go beyond just looking at the customers who frequent the business, but should also engage staff and volunteers by rewarding their loyalty too.
When it comes to the business world, a repeat customer is looking for the product and service, but also are seeking customer service. In most cases, it can cost a business about five to 10 times more to acquire a new customer than it does to sell to an existing customer. Not only that, but on average an existing customer will spend 67 per cent more than new customers.
Of course it is vital to attract new customers, but to do that a business has to truly understand their demographic, and how to get these customers connected to the values of the business brand.
More and more businesses or non-profit organizations strive to connect with customers on a personal level. It is these personal connections that will help retain those valued customers.
After all, Canadians are accustomed to being rewarded for their purchases. Especially in our hyper-connected world, engaged customers are more likely to spread positive word of mouth about the business to a larger audience. But people aren’t shy about sharing their opinions, or negative reviews.
A valuable loyalty program can help motivate these customers to be brand ambassadors, and spread the word about the business in a positive way. These positive messages have ripples through professional, personal and social networks.
It is important to recognize what makes a customer loyal to that business or non-profit organization. It might sound simple, but customers want to be treated with respect and patience, especially when they need support during a time when they are confused and frustrated. Businesses should train employees not to ‘talk down’ to a customer, but instead to engage in a respectful communication when answering their concerns and questions.
When a business employs staff who are enthusiastic and knowledgeable, those employees will do wonders for the reputation of the business. We have all heard anecdotally references to employees who perform random acts of kindness for their customers, and the positive effect that seem to flourish from those acts of kindness.
It is those small touches in life, those personal connections, that can create customers for life and might differentiate between business prosperity or failure.
