A common mistake made by many retailers is investing too much of their marketing budget on trying to get new customers, rather than investing in the customers they already have. Companies/brands must first reward their profit makers for being loyal. A business should differentiate between customers who bring the most value to their business and reward them accordingly. To drive activity and boost revenue from a business’s loyalty program it needs to incorporate a tiered reward based platform to reward it’s most valuable asset it’s repeat customer. A spend more – earn more strategy by rewarding VIP customers based on the value that they bring to your business. By offering discounts and special privileges business’ are afforded the opportunity to build closer relationships with their ideal customers. Rewarding VIP customers in a tiered loyalty program may include:
1) offering free goods for liking and sharing on social media.
2) discounts and promotions.
3) special buying opportunities(e.g. advanced viewing of new product).
4) offer preferential service terms/ offer special service(e.g.waiving minimum order quantities).
5) offer cost on products that are affiliated with a big regular priced purchase(e.g.purchase of a coat at regular price, offer either hat, scarf or gloves at 50%off retail).
6) reward introductions and referrals (e.g.offer discounts or free gifts for every new customer they introduce to the business.
7) entice customers to spend more then intended (e.g. spend $50 and get double rewards).
It is a mistake to underestimate the a value loyal customers brings to your business, since they are the ones who purchase more frequently and recommend your brand!
Does your loyalty program recognize the benefit of differentiating rewards to reflect the value they bring to your business?