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Customer retention is a huge challenge for retailers.<\/p>\n
The cost of acquiring new customers is far greater \u2014some studies suggest as much as seven times more \u2014 than keeping existing ones.<\/p>\n
Creating a customer experience that is satisfying is a much more cost-effective strategy than constant prospecting.<\/p>\n
Many find stopping customer churn to be a serious challenge but recognize the advantages of cultivating a base of customers: a 5% increase in customer loyalty can increase the average profit per customer, according to experts.<\/p>\n
Retention can boost the average profit per customer by 25% to 100%, according to fitsmallbusiness.com<\/span><\/a>.<\/p>\n \n \n Existing customers feel valued when they can participate in loyalty programs.<\/p>\n The programs foster a sense that they are getting a deal in appreciation for their repeat business.<\/p>\n Some businesses assume that by simply rewarding customers with discounts, shoppers will become more loyal.<\/p>\n However, cultivating a strong emotional bond between a brand and its customers is what makes it more likely that a customer will visit the store in the future.<\/p>\n For example, offering a sales discount as part of a birthday recognition personalizes the rewards experience to every member, making each feel special and recognized for being a loyalty club member.<\/p>\n \n \n While well-run loyalty programs that deliver customer satisfaction clearly improve retention rates, they can also be a means to attract new customers.<\/p>\n First-time shoppers can easily recognize a program that makes customers a priority and that anticipates and exceeds their needs as soon as they join.<\/p>\n Having a well-designed loyalty program not only keeps returning customers happy, but it also grows the retailer’s customer base.<\/p>\n Millennials are the largest group of shoppers in the current market, and as a demographic, they are very brand loyal.<\/p>\n However, they are particular about what they are looking for in a loyalty program.<\/p>\n No punch cards for this generation \u2014 or trading stamps.<\/p>\n The key to success with millennials is building a relationship, and that’s done through offering special experiences rather than coupons.<\/p>\n For example, a credit card that offers advance ticket purchasing for popular events; a coffee shop that gives members a heads up to seasonal drinks or a makeup line that provides VIP access to a celebrity Q&A on a social network are ways to make a customer feel special and want to be part of a loyalty program.<\/p>\n Loyalty programs are important to retain customers and attract new shoppers, as well as to help retailers forge deeper, richer, customer connections.<\/p>\n Happy customers spread the word, and prospective customers generally trust friends\u2019 feedback more than advertisements or other types of marketing.<\/p>\n Loyalty programs help polish a retailer’s image.<\/p>\n Humans want to feel known, and loyalty programs help retailers provide that experience.<\/p>\n By doing so, retailers reap the benefits of repeat customers while attracting new ones \u2014 and enhancing their brand’s reputation.<\/p>\n \n <\/p>\n","protected":false},"excerpt":{"rendered":" Customer retention is a huge challenge for retailers. The cost of acquiring new customers is far greater \u2014some studies suggest as much as seven times more \u2014 than keeping existing ones. Creating a customer experience that is satisfying … Continue reading Nurturing the emotional connection to your brand<\/h3>\n
Winning loyalty with new customers & millennials <\/h3>\n