Rewarding customer loyalty right now is vital
Posted on October 22, 2020 by Anthony Mortimer
Whether a record number of prospects trialled your product this year, or some of your top clients recommended your services to a friend, there’s a lot to celebrate this Christmas – and now is the time to reward both your customers and prospects for their openness, dedication and loyalty.
Here’s why…
Drive ROI in challenging times
For many businesses, spending is at an all-time low, whilst competition is at an all-time high, meaning there couldn’t be a more important time to encourage customers to remain loyal to you. In order to do this, you must ensure these customers feel valued. But how? Well, the right customer recognition and rewards strategy offers the perfect way to encourage existing customers to spend more, and it can even motivate prospects to make a first-time purchase with your business.
71% of consumers say loyalty programs are a meaningful part of their brand relationships.[1]
Customers who feel valued will not only continue to buy from your business, they can even become brand advocates, spreading the awareness of your products and services to their colleagues, friends and family. In fact, consumers that are loyal to a brand are 59% more likely to refer that brand to their friends and family, and are 36% more likely to spend larger amounts with your business.[2]
A loyalty programme is also a great way to deter your existing customers from jumping ship to a competitor – even if they’re offering a shiny new deal. This is because your customers are likely to recognise the long-term benefits of partnering with a brand that recognises and rewards loyalty, and not just new custom.
Spend your money wisely
Whilst recognising new prospects and customers is of course important, for many businesses, budgets are limited right now, and that means it’s essential to ensure you’re spending on rewards that will give you the most bang for your buck. With this in mind, if your budget has been reduced, focus your attention on your most-valued customers. These are likely to be long-standing clients who generate the most profit for your business. By reallocating your rewards budget to focus on this group, you can strengthen your relationships with them and motivate them to spend more with your business – now and in the future.
Loyal customers spend 33% more than new prospects.[3]
One of the key components to a successful rewards strategy is encouraging ongoing loyalty – regular rewards, rather than a one-off gift that could easily be forgotten. Rewarding customers for their continued custom helps to build long term relationships and encourages strong brand advocates. It’s a win-win for everyone involved.
Say thank you the right way with an M&S Gift Card
At M&S Corporate Gifts, we belive that one of the best ways to retain business and drive sales, is to recognise your customers’ loyalty with the right rewards. That’s why we offer Gift Cards, e-Gift Cards and e-Codes that give your customers the freedom to choose the most meaningful gift for them, from a huge range of luxury products online, or at one of our many stores across the UK. From our glamorous beauty gift shop, fabulous selection of clothing and footwear, to our cosy home range and our wide choice of magical festive foods – there really is something for everyone at M&S.
[1] https://hbr.org/2018/11/9-out-of-10-people-are-willing-to-earn-less-money-to-do-more-meaningful-work
[2] https://blog.accessdevelopment.com/2019-customer-loyalty-statistics