It costs a company more to acquire a new customer than it does to keep one. Customer retention is vital in nourishing a healthy business. Therefore, merchants benefit from customer loyalty programs to encourage customers to carry on shopping at or using the services of businesses connected with each program. A customer loyalty program is a customer-brand relationship. Whereby, the company offers high-class products, promotions, or pricing; in return, the customer agrees to be loyal to the business through repeat purchases or brand engagement.
- Direct Purchase Program.
A direct purchase program is a technique by which individuals can buy stock in a company right from that company. The benefit of a direct purchase program is that there is no need to pay any broker fees or commissions. The majority of big corporations offer direct purchase programs as a way of encouraging investment.
Direct purchase programs differ from company to company. These programs are required to comply with complex federal and state securities laws, which can enact various restrictions and eligibility necessities for stockholders wishing to acquire stock in this manner. This rise of low-cost brokerage services has caused this method of commission-free purchasing to decline in popularity.
- Use of the point system
With a point system, frequent customers earn points that can be used towards rewards like discounts, freebies, or special customer treatments. For example, a buy 10 get one free stamp card will give a customer reason to come back and buy from your brand consistently. In the marine industry, rewards can apply to equipment, apparel, services, boats, anything that has a value to you and your customers.
- Partner with another company to provide all-inclusive offers.
Strategically partnering businesses for customer loyalty can be very effective for retaining customers and developing your company. Which company would be a good fit for a partnership? It boils down to fully understanding your customers' everyday lives and their purchase habits and process.
A classic example is a sports attire shop that suggests discounted membership at the local gym for purchases above a certain value. As a result, the gym offers members discount vouchers for the store and access to special promotions. When you provide your customers with rates that are relevant to them but go beyond what your business only can offer them, you are showing them you understand and care about their needs. Also, it'll help you grow your network to reach your partners' customers, too.
- Invite customers to trial developing products and services for free.
By asking trusted customers to give you feedback on a new offer before you launch it will give them a sense of proprietorship over the product which is expected to result in sales later on and good word of mouth recommendation.
The goal is ultimately to establish brand loyalty by giving existing customers a reason to stay with your brand. In doing so, you maximize your marketing efforts by retaining existing customers which has been shown to cost much less than efforts to gain new customers. Loyalty programs are a perfect way to strike interest in current customers to keep the cycle moving.