subject: Loyalty Programs What Are They All About? [print this page] How would you maintain existing buyers? There is so much focus today on obtaining new clients that many people neglect the profit potential of the existing ones.
Those who've already ordered from you are the least complicated to sell to. For starters, they're verified customers. And assuming the first deal would have been a good experience, your current customers will certainly trust you. Therefore, it's simpler to sell to them rather than an individual who's never carried out business with you.
Also, do not forget that it is usually less costly to market to them. The reason being you currently have their particular contact information.
Consequently retaining your current customers is one of the most significant things you can do for your business. And one of the best methods to do this is actually to have a rewards plan. Listed below are three suggestions you can apply to have an useful program:
#1) Give benefits cards
These can provide points regarding everything the customer purchases. The more points they gather, the more things they could buy. This is often done by charge cards companies. Typically the more money spent, the more money back you receive.
Nevertheless, everyday businesses are able to do this as well. As soon as a customer purchases something, it is possible to instantly let them have money towards their next purchase. The more they invest, the more money that they get for the next purchase.
Certainly you need to offer more points for the products with the largest profit margins. These are the ones you need to encourage people to buy the most of. Should you present too many points for low profit margin products, you could possibly end up taking a loss.
#2) Present rewards for referrals
This is a tremendously effective technique. The reason being just what your client claims with regards to you constantly carries more weight than what you say.
So why wouldn't you give them a gift card for every single new client that signs up? In order to do this right, you need to know how much your current common customer may be worth to you. This will help set a maximum dollar amount you can provide.
For instance, once you learn every customer may be worth around $200 over their lifespan, it is possible to safely provide anything less than $200 as an incentive. This strategy on it's own may significantly build your business.
#3) Use a newsletter
Make sure to include deals or a cash inducement to be able to encourage people to join up. News letters are a great way to stay in contact with customers and get that subsequent sale.
It doesn't matter what tactic you employ, you need to find that next purchase in a hurry. The sooner an individual buys from you a second time, the greater your chances are to experience a client forever.
The more time you wait, the more probable it is they'll discover another company to do business with. When you carry out these three tips, you may give yourself a great chance of maintaining your customers for life.
