Building a loyalty program is a great way to extend the average life of a customer in your business which will also increase it’s value. So how do you do it? We have some tips for you.
A growing number of business owners have a hard time understanding why current customers are more profitable than the new ones. Why, you ask? Well, the equation is simple – the acquisition of a new customer through advertising and marketing is more expensive than the preservation of an existing customer. But how do you build a loyal clientele for your business which will be fully tempted? One way to overcome this challenge is to build a customer club.
Customer relationship management is a field about building personal relationships with clients, aimed at producing a profit for the company. Building Smart Club customers can reduce marketing costs of the business, strengthen customer contact with the company, raise the profitability of the client for the business and consequently increase the profitability for the entire company. Proper planning of a Customer Club will help in several areas: extending the life of the average customer and increasing the value, from bringing new customers and understanding the preferences of the existing customers, to creating new products to meet these preferences. We picked up four important points for you to consider before launching a customer club.
Define exactly what you want to achieve
There is no justification to establish a customer club if it does not serve for business purposes. Setting goals and objectives is essential for the production of a well-defined strategy and to measure success in the future.Why you want to create a customer club? Do not settle with a simple answer like “to increase the profits”. Are you interested to increase your mailing list?
Extension of time of your company’s website or extending the life of a current customer?
It is important to ask yourself these questions before starting and defining the entire achievement with their help.
Understand who is your target audience
The key to the success of any loyalty program is familiarity with the target audience – from the demographic and socio-economic status of your clients through the mapping of current trends in their preferences to their level of familiarity with your competitors. This information can be obtained in a variety of ways, including: Using surveys of your physical store or site, interaction with customers on social media and interviews with service providers of your business (because no one knows the needs of customers better than them). Accurate segmentation of the different profiles of customers of your business will allow you to offer them rewards, coupons and / or relevant awards for each of these segments. In general, relevance is the key in creating a successful loyalty program. It is important to offer customers awards that will serve to their wants and needs and not only to company needs.
Keep a finger on the pulse
The old saying “if it is not broken do not fix it” is correct in many cases – but not when it comes to generating a customer club that is alive, vibrant and lucrative. Often business owners are tempted to use trials and tested methods that have proved to be successful for competitors or even for themselves. However, be sure to review all the time whether these methods work well. Are they still relevant? The world is moving faster than ever. The hit of yesterday finds itself trapped today, needs are born and die in an instant, times are changing and the only way to deal with the matter is to change them. To ensure that clients continue to invest money, earned with great effort, in precisely products that we sell is important to build them a special loyalty program and be as innovative as possible. Follow the trends and tendencies, make sure to catch up with what your competitors are doing, try brainstorming with your team and wove together unique ideas that will be beneficial to both parties.
Did you analyze? You did not!
In general, any business activity requires us to aggregate data collection activity results, analysis, conclusions, improving operations, and so on. Neglecting the important aspect of this, whether it is analyzing the success of the club that you founded and whether it is any different aspect of managing the business, it means to conduct blindly the company. The Club Module in Comax Smart Retail ERP allows tracking and analysis of activities of the club in whole or of the individual customer. The unique module allows determination of pricing and promotions for the club.