Many big brands over the world have a problem finding the balance between acquiring new customers and maintaining regular ones. Statistically, about 44% of companies have a greater focus on customer acquisition strategy, and only 18% concentrate on retention (Huify). It’s kinda strange that efforts to improve retention are often put on the back burner, or totally neglected when a study revealed, that brands end up spending 11 times more on onboarding new customers than retaining the existing ones (BrandKeys). Is there any way to reduce costs and work both on gaining new clients and make loyal consumers stay?
Two key drivers of growth – the Yin and Yang of customer strategy
When you grow flowers, you can’t stop after planting if you don’t want them to wither. They have to be watered – the same as clients. Customer without acquisition and retention strategies is like an unwatered flower- if either one is missing, then it won’t bloom. Achieving success in the subscription world is not an easy job, in the same way, you need to both acquire and then retain customers.What are the key benefits of acquisition and retention?
Every company is faced with a question at some point, whether they should be focusing on customer acquisition or customer retention? Our answer is to prioritize both using an appropriate marketing strategy with the resources they have at hand, like SALESmanago Loyalty Program.
Loyalty Acquisition Program to strengthen your salesforce
As many as 69% of consumers allow the presence of rewards or loyalty programs to influence their shopping decisions (Sheerid). But which plan is best to acquire new customers? Well, any. But with a special offer.
One of the most recommended types of programs is the Tiered Program. You can develop first-tier low-setted to quickly engage your customers.
Tiered Programs – as the name says, are based on levels that, when achieved, provide various rewards with tangible value and are fuel for word-of-mouth marketing channels. If you offer points to customers after every purchase (based on tier-level), which can be redeemed in the future, then customers are confident that every dollar spent on your brand will also benefit them in return. For example – changes their status in Loyalty Program, and allows them from the very beginning to gain initial loyalty rewards and encourages more purchases.
As we said before – it’s good to develop a welcome offer in your Loyalty Program strategy. It makes customers feel like they are being “welcomed” into the community surrounding your brand, engage with your brand and also make them stick around.
Loyalty Retention Program to celebrate long-term relationships
Loyal customers are the most valuable for the company since they provide the most income, 5% boost in customer retention increases profits from 25% to 95%. (SmallBizGenius) and also acquiring a new customer costs 5 to 25 times more than maintaining the current one (Harvard Business Review). So how to develop a strategy that makes new ones stay loyal? Make them feel that you care – implement the Birthday Loyalty Program.
It is one of the most simple and advantageous ways. Not only will it boost your sales, personalize the customer experience with your brand but also re-engage inactive customers. Set a completely automated birthday program, send your clients birthday emails with additional points that can be traded for extra discounts. The best thing is that you pick rewards, and can coordinate the time of sending it with – for example – releasing your new offer!
Loyalty Acquisition & Retention Program – using retention customers loyalty as an acquisition tool
Have you ever realized that the best ROI is actually optimizing your existing customer database using retention marketing and loyalty programs? Thanks to the implementation of the Referral Loyalty Program, your current clients will not only return to your eCommerce more often, start spending more, but also willingly share their knowledge about your offer with their loved ones in order to obtain additional funds for purchases, gifts or promotions!
Turn your consumers into salespersons and let them become a future customer acquisition tool. How to develop a Referral Loyalty Program in SALESmanago?
Using workflow and automation rules you can provide various scenarios, and let every client has their own referral codes, which after entering when registering by new guests, will automatically assign them extra points! Give your repeat customers an incentive to refer your eCommerce to their friends and family, according to Nielsen’s Trust in Advertising Report, a referral from a friend is the most trusted form of advertising. Make it a win-win-win situation, provide a start-pack for new customers, and additional points for referring clients to engage them even more.