Customer loyalty schemes
While good overall service is the best way of generating customer loyalty, sometimes relationships can be strengthened using customer loyalty schemes. This can work for new and old customers.
Loyalty programmes may use fixed or percentage discounts, extra goods or prizes to reward customers for behaviour that benefits your business. They can also be used to persuade lapsed customers to give you another try.
Your customers’ view of the overall service you provide will influence their loyalty much more than short-term rewards will. Be sure to tackle any perceived customer service problems before implementing a scheme.
Example customer loyalty rewards
You can decide to offer rewards on the basis of:
repeat custom
cumulative spend
orders for large quantities or with a high value
prompt payment
length of relationship
For example, a car wash might offer free cleaning every tenth visit or a free product if a customer opts for the deluxe service. A mail-order company might seek to revive the interest of lapsed customers by offering a voucher redeemable against purchases. Response rates with such vouchers can be improved by setting an expiry date.
You can also provide key customers with loyalty cards that entitle them to a discount on all their purchases.
Promote your loyalty scheme
Employees who deal with customers’ orders should be fully aware of current offers and keep customers informed. Consider traditional marketing, digital marketing and social media promotions.