We all know by now that the coronavirus pandemic has created a challenging time for businesses all over the world and has changed customer buying patterns – for who knows how long! The industry leaders are conducting research on whether the change from a more generous and wide-spread consumer to a more focused and local shopper who is taking more time to question what is and isn’t a necessity is here for the short or the longer term. One thing is clear: attracting new customers is unlikely. If you weren’t a necessity in their life before, you won’t be prioritised now. That means that businesses need to harness the power of their current customers and ensure they are doing all they can to keep them coming back!
Here are three ideas for increasing the revenue of your business through prioritising customer loyalty in a small to medium business.
Referral Program
According to research, customers that your business acquires through referrals actually have a 37% higher retention rate than customers brought to your business on their own. Businesses are said to expect 16% more in profits from referred customers than non-referred customers – so never underestimate the power of a friend’s recommendation. Incentivising your customers to refer your business to a friend or family member or even bring them along with them can be incredibly powerful for increasing your business revenue. This can be done with discounts and free products – and, of course, the positive feedback of your current customers.
Discounts and Multi-Buy Promotions
It might seem somewhat contradictory to push discounts and multi-buy promotions during a time of business uncertainty, but discounts are usually a fantastic tool in pushing consumers to a buying decision quicker. Never underestimate the impulse to act on a bargain! Acknowledging that you understand your consumer, signalling that you’re on their side and want to give them the best deal possible, standing by them in the tough times, will create a more meaningful connection than trying to profit from this time. That connection means repeat-business of a loyal customer and secures you revenue in the future.
Push Notifications and Incentives
Did you know that 81% of consumers are more likely to engage with brands that have reward programs? You don’t want to be ‘out of sight and out of mind’ during this period. With people choosing to spend more time at home and less time shopping in person, they are a lot less likely to come across your business, your store front or your adverts. BUT they’ll always have their phone on them. Creating a reward system that provides discounts, freebies and valued incentives to your customer will keep them coming to you rather than your competitors and, if you harness the power of technology when designing your reward program, you’ll be able to send your customers reminders and push notifications.
For more information on a reward system for your business that actually yields results and delivers the best of new technology, browse our website here or get in touch by calling +44 330 088 6678.