Customer acquisition, or getting customers and clients as it’s known in plain english, is at the top of the agenda for most businesses and their owners – most of their marketing budget, strategy and time, if they have those, is spent on advertising materials meant to drum up new visitors, clients and customers for their small business.
Not to mention, new technologies such as group buying sites and consumer reviewing apps are emerging to help businesses expand their reach. New ways of tagging people on content posts, sales funnels, lead funnels, funnels for funnels, chatbots, autobots and deceptorcons.
The last two are the names for Transformers so I’m making sure your with us so far…
However, many fail to put as much focus on customer loyalty programs. And it’s just bemusing.
They are the richest vein of marketing you could wish for and if you tap into that vein just right, I am telling you, not only will you marketing spend go down, but what you do spend has a much higher return on investment.
Building and growing any business is much more than just accumulating new customers – it’s retaining recurring ones, too. Unless of course you are an undertaker or a driving instructor.
Two businesses where people leave after they’ve either died or passed their test, never to return. Very few businesses are like that, but you get my jist!?
Many businesses overlook the importance of customer retention and loyalty programs and they really shouldn’t. They are able to bring increased sales, brand awareness and a sense of security during tough times.
In fact, many businesses report that 20 percent of a business’ existing customers generate 80 percent of its profits. It’s that good old 80/20 rule that gets banded about a lot, but is essentially spot on.
In order to bolster profitability, businesses must cultivate and care for their recurring customers, engaging them in customer loyalty programs and providing them with frequent incentives. Lets take car insurance for example.
About 10 years ago, they had it all their own way. You bought their insurance. Renewal came around. You stayed with them because it was just less hassle.
Problem is that we became educated to the increasing cost of insurance if we didn't look around. If you spent say £300 a year on insurance and didn’t have an accident, a conviction, a bump, a scrape, hadn’t moved, hadn't changed car and hadn’t claimed, why on God’s green earth should your insurance go up to £400 the next year?
Hardly reward for being sensible is it?
It’s the same with gas and electric and tv and broadband right now.
We’re left feeling a bit bitter and twisted because new customers get the best prices and good, loyal ones are just paying whatever someone wants us to pay. We then spend our valuable time either looking elsewhere or haggling with someone in Scotland or further afield to get the best deal we can. Why should we go to those lengths when all we are, are good customers and clients?
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