According to the New York Times, 65% of new business comes from referrals. Also, it costs five times more to acquire new customers than to retain an older one.
This doesn’t mean that you should stop generating new leads. However, if that’s all you have been doing, you may consider re-strategizing.
Take some time and ask yourself what you are doing to make your existing customers happy and satisfied. If you’re at a loss, it may be time to consider a strong loyalty rewards program.
Here are some of the things that you may consider to increase your retention rate:
1. Provide Relevant Content to Your Customers
Encourage your clients to learn more about your brand by watching videos and reading your blog. Note that the more engaging and helpful the content is, the more sales and loyalty you are likely to receive.
Great content gives you a chance to showcase your expertise in the field or promote a new product in the market.
Spending time to educate your customers before the purchase of a product helps them grasp all the ways your product could be useful to them. Most of the time, customers fail to understand how to use a product, leading to undesired results. Tip the odds of them having a fulfilling experience by providing clear instructions.
The beauty industry has embraced offering free tutorials, which has significantly boosted its sales.
2. Ask for Feedback
Clients want to feel valued in a company. Asking about their experience and any challenges they are facing will keep them coming back in your store.
Good reviews also help new clients in understanding your brand more and increases their confidence in working/shopping with you.
If you are not getting enough reviews, you may consider setting a point system to encourage your customers to leave a review.
Additionally, learn how to handle negative reviews. The negative voices are always the loudest.
If there was a mistake that happened during the sale, own it. Thank the client for the feedback and promise to resolve the issue.
3. Be a Brand Full of Surprises
Everyone loves pleasant surprises. Employing this in your business can revive inactive members, as well as help celebrate a new milestone with your old customers.
A good example is Dunkin’ Donuts’ loyalty program, where the shop gifts its members with a free beverage on their birthday.
Such acts are what creates loyalty, and loyal customers are likely to recommend you to their friends and relatives.
4. Offer Exclusive Perks
People expect special treatment for their loyalty. You can achieve this in a few different ways. This is one of the major aspects that allow MLM companies to thrive.
For example, you can invite your loyal customers to buy a new product before it’s released on the market. You can also have events that are limited to loyal customers only.
Remember, while you have an advantage as an MLM there are a number of competitors like other MLMs, and major brands like Walmart, Target, and Amazon all offering their own rewards programs.
The difference is these successful programs are built on a strong platform like the one MultiSoft offers in its MarketPowerPRO MLM Software suite.
5. Communication Calendar
Just because your clients are not leaving feedback does not mean that your relationship with them is over. You should follow up and learn why they have not been interacting with your brand.
Consider having a communication calendar to show you how your clients are engaging with your brand.
The calendar will show you the last date a client communicated with your product. This helps you know when it’s time to set a promotion to revive inactive customers.
This helps you to clear any roadblocks before the clients even notice them.
For instance, if you offer subscription services, you can send a reminder to your clients before their expiration date.
6. Customer Loyalty Rewards Program
Remember that the top 10% of your loyal customers spend three times more than other customers. It is, therefore, advisable to ensure they are happy.
A customer loyalty program ensures that your clients get more rewards, the more they shop with you. This ensures that they don’t only get your product or service when they shop with you.
Loyalty programs also motivate your customers to keep buying from you. Remember, it always costs more to bring in new clients than it does to teach your customers to return again and again.
Mega brands such as Amazon and Starbucks have mastered the art of motivating customers to return to their business repeatedly. Through points and gold star loyalty programs, their customers are able to cash in on their loyalty through exclusive discounts and free products.
The nework marketing, i.e. MLM, industry is also learning how to master the art of rewarding both their customers and distributor with Loyalty Rewards programs as they must pivot their business models in order to compete with online eCommerce giants. Companies such as MultiSoft Corporation now include a Loyalty Rewards program in their MLM software system for their clients.
Team members in multi-level marketing companies are often provided major incentives such a free products, vacations, and even cars. Their customers are motivated to do the same and are rewarded for their word of mouth advertising. As the eCommerce landscape changes so must network marketing companies change.
7. Corporate Social Responsibility (CSR) Program
A big percentage of customers admit that they shop with some brands simply because they share the same belief. Gone are the days when a great product or service was enough to attract new clients.
Customers are now more aware and are looking more in-depth on a brand before spending their money.
It is, therefore, essential to think of a good course that you can support in society.
For example, Lego is spending $150 billion to make its product environmental-friendly. Well, you don’t have to go this big if you are running a small business, but you can figure out something similar that is budget-friendly.
Perhaps for every 100 products you sell, $10 goes to a charity organization.
8. Company Newsletter
This is a very inexpensive method to remind your customers that you still exist. You can use email automation programs to inform your subscribers about your new products.
You can also use the RSS feed so that you don’t have to update content or press send manually.
9. Improve Customer Service
If you get everything right and still have poor customer service, your sales will remain low as you will continue losing customers. Ensure customers are getting the best experience in your shop. Educate your employees on etiquette and communication skills.
Also, see that you reply to your customers in the shortest time possible. Many customers expect a reply in less than 4 hours.
Although this may seem challenging, adding chatbots to your website and social media channels can be a great tactic to help you accomplish the goal.
10. Be Omnipresent
In this era, customers interact with your brand in all channels. It is your task to ensure that your customers can enjoy a pleasant experience across all your platforms. This also means enjoying any forms of loyalty programs regardless of where they shop with you.
For example, the Zumiez Stash allows clients to earn loyalty points whether they shop on social media, website, or in their stores. This ensures that no one is missing out on any offers.
The Right Tools to Help
Having an effective loyalty rewards program is a matter of the right incentive and the right software to track it.
If you’re ready to set up your loyalty awards program but aren’t sure where to start, contact us today for more information on how we can help.