Achieving Big Customer Loyalty in a Small Business World

10 Tips to Create A Killer Customer Loyalty Program

1. Benefits of Driving Customer Loyalty

2. Trends in Customer Loyalty

3. 10 Tips for Creating Your Own Customer Loyalty Program

Benefits of Driving Customer Loyalty

It can cost up to ten times more to acquire a new customer than to retain an existing one

Benefits of Driving Customer LoyaltyThe Loyalty Effect: A 5% increase in customer retention can lead to a 25% to 100% increase in profit

 

Benefits of Driving Customer LoyaltyA loyal existing customer can be a brand champion and important source of new revenue

Becoming an entrepreneur has always been a lifelong dream. I’ve experienced much success throughout my journey, but my first repeat customer was the biggest milestone as a small business owner; that repeat business gave me the confidence and hope that my business would thrive.

– Carol Todorovich, owner of Healthy Café Creations.

Trends In Customer LoyaltyOn the rise – focus on repeat customers

Trends In Customer LoyaltyOn the decline – spending time and money on customer acquisition

Trends In Customer LoyaltyBecause of this shift, customer loyalty programs are starting to gain traction in the small business community

Our Crepe company uses a digital punch card reward system powered by Square to reward repeat customers and build a loyal customer base. Because it costs more to gain new customers than retain existing customers, we felt it was important to implement a customer rewards program to make our existing customers feel appreciated. Our customers earn $5.00 after 10 times of spending $10.00 or more. This is a low-cost way to reward customers who enjoy our crepes on a regular basis.

– Richard Foote, CEO, Oregon Crepe Company 

So, Where to Start?

Start with the End in Mind Start with the desired outcome in mind

Clearly define their goal

Be specific and measurable

Tip 2: Determine Your AudienceDetermine who will be eligible for the program

Be targeted

Reward the ideal buying behavior

Tip 3: Create an ROI-Positive Program

Determine the loyalty program structure

Set this up at the onset

Lay out multiple programs

Do the math

Tip 4: Encourage Customer Opt-InGive customers multiple options for joining

Track your opt-in list

Manage future communications

Tip 5: Automate, Automate, Automate

Automate to manage and maintain

Automation doesn’t reduce personalization

Personalize service for a competitive advantage

Tip 6: Stay In Touch Via EmailEmail to kick-off a loyalty campaign

Create a steady stream of communication

Use templates to reflect your brand

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Tip 7: Go SocialEngage existing customers on a regular basis.

Understand where your customers prefer to engage

Build through varied & continuous content

Tip 8: Get IntegratedIntegrate with services like apps

Automate email, mobile, and social

Track customer activity

Tip 9: Get MobileUse mobile apps to reward customers for positive habits

Use mobile numbers to track and distribute rewards

Connect directly to Facebook and Twitter

Tip 10: Be Consistently EngagingRemain visible with consistent and relevant communications

Target communications to customers’ interests and preferences

Use CRM to manage customer information to create personalized communications

Customer Loyalty:A tremendous opportunity to increase the value of the majority of your business — existing customers

Questions?