Reward Your Repeat Customers
The sales cycle is now a never ending process. We used to look at the sales cycle as filling the funnel at the top, a prospect, and moving the top of the funnel to the bottom, a buyer. The sales cycle ended after the purchase was made. Companies now realize that these customers can and do become repeat customers. Repeat Customers are much less costly to retain than new customers are to attain.
According to a recent article on Forbes.com, it is 5x more expensive to acquire a new customer than to retain your existing ones.
The tendency for most businesses is to focus their resources on acquiring new customers. While it is important to always work to acquire new customers, it is also important to remember your existing customers. Your existing customers are more likely to buy from you whether it is to buy more at one time (selling additional products or services) or buy more often (increased frequency). This is true because they already know, like and trust you. You need to establish the know, like and trust with a new prospect and it’s not an easy task.
You may now be asking how do I retain my customers in a more effective manner?
The answer: relationship marketing. Relationship marketing keeps your name in front of your consumer by using follow up emails, direct mailings, holiday/birthday cards, special offers, content marketing, social media marketing etc. Relationship marketing focuses on long-term customer engagement to drive long-term customers and sales. Perhaps the most effective way to retain customers? Reward them for their loyalty.
We see reward programs at almost every corner we turn. Recently, in light of a crisis Chipotle announced a loyalty program of buy four burritos, get one free. Why? They want to retain their loyal customer base by rewarding them, they know it will be easier and less costly to keep their existing customers than find new ones.
There are several ways to offer a rewards program including:
- A points system, like airlines/credit cards.
- A game, similar to McDonald’s Monopoly.
- A VIP fee for exclusive offerings and discounts.
- A badge or reward only available through a certain amount of purchases.
- Ongoing contests/giveaways such as a drawing.
If you are interested in a unique rewards system that amplifies your social media marketing please contact us today to set up a 15-minute phone call.