In the midst of the new normal, customer loyalty has become more important than it’s ever been. With so much uncertainty, loyal customers will remain the most consistent source of revenue for businesses everywhere.
Did you know that you’ve got between 60 and 70% chance of making a sale when it’s with an existing customer? When it comes to new customers, you’ve only got between 5 and 20%. (Marketing Metrics)
Loyalty is consistency. Here’s what you need to know about loyalty marketing in 2020.
It’s all about the brand. As we’ll highlight throughout the article, there are many ways to build loyalty. But at the end of the day, one of the most critical parts of fostering loyalty starts with branding. According to a study from Wunderman, before even thinking about a purchase, 79% of consumers want brands to show not only that they understand them, but also care about them.
Customer service matters. Customer service is all about relationship management. If you want to build loyalty, you have to build a good relationship as well.
According to a report from Microsoft, 96% of customers feel that customer service is an important factor when developing loyalty to a brand. Research from HubSpot echoes this claim, telling us that 93% of customers are more likely to become repeat customers when excellent customer service is involved. Seriously, don’t sleep on customer service.
More loyalty programs, more engagement. Like I said, loyalty is more important than it’s ever been. And good news for you; loyalty programs are bigger than ever too. Bond’s 2019 report on loyalty (aptly titled, The Loyalty Report) found that loyalty program memberships are continuing to rise.
However! There’s one key takeaway here. The report found that while people have 14.8 loyalty memberships on average, they’re only active in 6.7 of them. This highlights the importance of consistent customer engagement. The most successful loyalty programs are the ones that find creative ways to keep their members involved.
If you can get customers spending, you can get them in your loyalty program. What creates loyalty? Where does it start? Well, one proven method for developing loyalty is to generate recurrent customer spending. That means getting customers into your ecosystem and incentivizing them to stick around, whether it’s through your loyalty program, deals, a subscription, you name it. According to Yotpo, 37% of customers don’t consider themselves loyal until they’ve made five purchases. Engagement is the name of the game here.
Try gamification. Speaking of games, another element I wanted to highlight is gamification. If you’re keeping up with some of the top loyalty programs, you’ll notice that gamification has really started to take off. This is the process of implementing game-like elements into your loyalty program. Bond’s loyalty report reveals that game mechanics nearly double the enjoyment level. Give it a try.
Text loyalty is taking over. Guess what? If you want to have a great loyalty program, you don’t need an app. In fact, your customers may prefer that you don’t have an app at all. A survey from CodeBroker found that the most preferred method for accessing loyalty program info isn’t through an app or a website. It’s through a simple text to their smartphones.
Sound interesting? We’ve got something you might like.
Loyalty With CoGoBuzz
It’s time to ditch the apps and hole-punch cards with CoGoBuzz, our state-of-the-art digital marketing service.
Powered by advanced WiFi, SMS, and Email solutions, CoGoBuzz comes packed with a completely digital, text-based loyalty program. Our service has a diverse array of features designed to keep your customers engaged, rewarded, and involved. CoGoBuzz simplifies customer engagement down to a simple text message, letting you connect with your customers on the devices they use the most. With CoGoBuzz, you can automate entire campaigns ahead of time. Send automated birthday messages and more!
Have any loyalty marketing advice to share? Sound off in the comments!