subject: Business incentives are key to keeping customers [print this page] Business incentives are key to keeping customers
Variety, as the saying goes, is the spice of life. And from a modern day consumer's perspective, this sentiment certainly rings true.
With the advent of the internet era, consumers have more choice than ever and are no longer restricted to retailers in their own area they can shop on all four corners of the Earth without leaving the comfort of their own sitting room.
Whilst some might argue that there's now too much choice, the fact remains that too much choice is better than no choice. Healthy competition favours the customer, helping to ensure they receive value for money.
Given that customers can switch their product and service providers easier than ever before, customer loyalty schemes have entered the fray, designed to reward buyers for not shopping elsewhere.
One of the earliest and perhaps most prominent loyalty programmes to emerge was the frequent flyer initiative adopted by countless airlines to encourage customers to travel with them. Members of the scheme amass points' corresponding to the distance flown. These points are later redeemed for free air travel or can even be used for other goods and services.
Elsewhere in the world of commerce, companies of all sizes and from across every sector can offer new business incentives, sales incentives or customer retention incentives.
It's perhaps safe to say that the best sales are the easy sales. That is to say, the less time spent trying to lure in new business the better, and the easiest way to do this is to look at your existing client base.
It's often said that retaining one customer is up to seven times more profitable than acquiring a new client. Hence a customer retention incentive is a wise option this could be in the form of a discount coupon for you client's next order with you, or it could be a voucher to use at any number of retail outlets. It's simply a way of saying thank you', and your customers will appreciate the gesture.
So, not only does variety provide the 21st century consumer with real choice, but the upshot of all this is that it also encourages businesses to give something back to their customers an incentive to remain loyal. The beauty of loyalty schemes is that they reward the customer simply for doing what they do anyway shop! And by making your customers feel valued, they'll naturally be more inclined to be loyal in return.
Isla Campbell writes for a digital marketing agency. This article has been commissioned by a client. This article is not designed to promote, but should be considered professional content.
