As the old adage goes, a bird in the hand is worth two in the bush – or six to seven if we’re talking customer acquisition. It is six to seven times more expensive to gain a new customer than it is to retain an existing one. Furthermore, existing customers spend an average of 67% more than first time shoppers. Nurturing pre-existing relationships with your customers is a crucial component to business growth, and one of the simplest and most effective ways of doing this is through loyalty marketing.
Consumers are ever-increasingly inundated by choice, and as sponsored content clogs the Social Media feeds of users, attention-span plummets as cynicism skyrockets. For brands to cut through the noise and gain a foothold with their audience, they need to intimately and genuinely connect with their customers, at every step of their journey.
Building ‘loyalty’ today is a far more complex than simply rewarding and redeeming points for purchases. Every touch point a customer has with your business is an opportunity. Active and timely community management, carefully devised and executed Customer Service Protocols, retargeting advertising and an airtight email marketing strategy delivered to consumers at key stages of their journey, amalgamate with subscription or membership programs to establish and fortify loyalty.
True loyalty requires much more than a quick fix discount, gift with purchase or special offer. Leading Online cosmetic and beauty site AdoreBeauty, is on the fast track to global success, thanks to their cohesive strategy toward generating repeat orders, and offering their consumers more than just products. Their Beauty Rewards program doesn’t just comprise discounts and special offers, but informative articles, tips and tutorials, and the latest news from the world of beauty, which help to keep their subscribers engaged, educated and invested. The company’s CEO, Kate Morris, sums up their holistic approach; “You can offer all the points and perks you like, but having great inventory and fulfilment systems as well as an excellent customer service team will trump points every time."
Devising the best loyalty strategy to connect with your customer depends on you really knowing them. Listening to their needs to identify what’s lacking in their experience, provides a clear-cut path toward loyalty, whilst quashing competitors. Startup E-commerce wine company, VinoMofo, grew to be a multi-million dollar brand, by disrupting their industry using the simplest technique – honesty. Their target market was sick of feeling patronised when it came to selecting wine, and the “bowties and BS of the wine snobs and posers” traditionally associated with wine culture. The company’s members-only site allows its subscribers to get high quality wine delivered to their door, as well as recommends wines that are curated specifically for each customer’s taste. Their business model not only captures their audience from the get-go, requiring users to subscribe, but the interactive reviewing and recommendations component of the site help to make users feel included and respected – cornerstones in building loyalty.
At Nitty Gritty, we work closely with our clients to define their goals and thoroughly get to know their audience, to ensure our strategies authentically connect the two. If you’d like to chat to us about how we can increase loyalty to your brand, get in touch. We’d love to hear from you; [email protected]