Building and making a business prosper has never been as challenging and difficult as in these highly competitive times, and one of the most important factors for successful business remains as ever – marketing. Letting the market know that your business or brand exists and attracting customers to your business is essential for the survival and prosperity of your business. Without customers, even factors like the quality of your product or service become insignificant. Given this essential need to market your business, business owners face a grave problem in current times. This is the rising costs for advertising across all media and platforms due to the limited ad-space available over print and digital media and the ever increasing number of businesses. Stuck in between this increased competition and the new era of tech-savvy customers, simply offering discounts can no longer be a guaranteed way for businessmen to attract and retain their customers. This is where retention marketing comes in as the most viable solution.
So what is retention marketing?
Simply speaking, retention marketing is the process of ensuring that customers that have been acquired keep returning as repeat customers of your business. It works with all pre-existing customer acquisition strategies and aims to make sure that the customers are given extra incentive to prefer your business over other ones. Ideally they become advocates that promote your business as personal advertisers at no cost to you. As competition across industries increases and consequently the cost of advertising shoots up, it is essential that businesses start relying on new and effective methods for marketing their products. Retention marketing has emerged as the top solution in our digital age, allowing business to balance customer acquisition against customer retention and see an increase in their returning customers. It is a multi-utility tool for a business, simultaneously boosting customer acquisition and retention while enhancing customer lifetime value and purchase frequency. Retention is basically all about finding more and more ways to make your customers keep returning to your business.
So how do you retain customers effectively?
Making customers return to your business is tricky in a market as competitive as the current one, but there are a few foolproof methods that continue to work despite the competition. Foremost among them is ensuring optimal customer satisfaction. The most important reason for a customer to return to your business is a wholesome and utterly satisfying customer experience being presented to them on their first visit to your business. Paying attention to your customers’s satisfaction levels and optimizing the customer experience is pivotal to customer retention. However, due to the sheer number of businesses and the competition faced by them for attracting customers, more than just good customer experience and quality product is required to make customers swarm to your business. That is where customer loyalty and customer referral comes in as the best solutions to this complex problem.
How to work customer Loyalty and Referral in your favor?
Customer loyalty is a very important aspect of the relationship between a business and its customers, and rewarding customers for their loyalty is a time-tested method for boosting customer retention. By rewarding customers for their loyalty your business can simultaneously gain new customers and make existing customers return, presenting a win-win situation for both you and your customers. What is essential for customer loyalty reward programs to work however is that it is simple, hassle-free and adequately rewarding. Nowadays nobody cares to collect thousands of points to have to redeem them for some trivial discount or gift, and most point-based loyalty reward programs are facing a growing decrease in their rate of success as time passes. Loyalie has designed an effective and new model for rewarding customer loyalty with its stamp-based reward system as opposed to a point-based one to combat this problem. With this new model it becomes possible for a business to efficiently offer a loyalty reward program and customers to easily and botherlessly avail of the rewards they earn. In addition to customer loyalty, customer referral programs like Loyalie Referral are also instrumental in increasing customer acquisition and retention, while simultaneously taking care of your marketing and advertising needs at no extra cost. When your loyal customers become advocates who refer your business to their close friends and family, you stand to gain loads in terms of marketing as it requires no cost on your part and ensures the best rate of leads conversion as word-of-mouth is the most effective form of marketing, breaking through the marketing noise that traps all ads and sales pitches in digital and print media.
Retention marketing as the solution –
The secret of using retention marketing to oust your competition is in combining all these methods and optimizing customer satisfaction, customer loyalty and customer referral programs simultaneously to create the biggest possible impact. By combining these three the resulting impact on the marketing of your business is much larger than any of their individual impacts, and is indeed more than even their sum total as each one of these programs enhances the other one and creates exponential benefits for your business. Making sure that your business provides excellent customer service and satisfaction while simultaneously implementing customer loyalty reward programs and customer referral programs is the surest way for your business to beat the competition and meet the challenge of today’s high-traffic industry and business.