It starts with a loyalty & rewards program with a little Key Tag!
Recently one of our sales people received a telephone call from your potential client who shared this story with him: "I went to Costco to acquire several items which were discounted and as he was looking into the cashier called someone over who pulled my purchase records. Ends up that if I might upgrade my current membership I could possibly earn income back in my purchases, enough to fund the upgrade and a lot more."
Why not? Why would Costco offer him cash back on regular purchases? Because Costco's recognizes that now he will choose Costco across the supermarket, a supermarket or perhaps another discount warehouse.
Costco's objective is always to increase their sales volume without investing in advertising or marketing. This is a great illustration of a buyer loyalty/reward program that actually works. It effectively costs them nothing and they've increased the percentages that the current customers will buy a lot more frequently.
So, what can any small company gain knowledge from this example? First, it's a wonderful idea to supply your prospects a loyalty/rewards program. It's less costly to hold current clients than it is to discover new ones. The initial step is to try and capture each of the business you can find out of your current customers. Now you have the basis for a loyalty program.
Second, ensure it's something simple, simple to implement and explain. If it's too complicated nobody will participate. Moreover, you don't want to create a strategy which is costly.
An important junk food franchise group made a loyalty/rewards program that gave out key tags to it's patrons, this program was simple - any customer having a plastic key tag was offered, "Free taco with any purchase!"
Why would a significant take out company want to hand out a no cost item with every purchase to customers who have the true secret tags? Simple, the goal is usually to improve their sales volume without making use of a major expense on advertising or marketing.
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This is actually the kind of a consumer loyalty/rewards program that really works. It effectively costs them minimal and they've increased the chances their current customers will return and get more. This program is really a success. Interestingly, participation in loyalty/rewards programs is up with this recession.
"Customers are leaning on loyalty programs to stretch household budgets further by earning rewards for their purchases."
Precisely what does all this tell us? That using loyalty/rewards programs is an effective technique for increasing revenues in a recession. Past the lessons learned through the examples above will be the with the knowledge that as a way to gain customer loyalty - you should offer an excellent client experience. It does not do your business anything good to have a loyalty/rewards program in case your product, service, or customer care is sub-par.
Think about it. When your customer's experiences haven't been good - there isn't a software program on earth that is going to keep clients returning for more. So Before considering starting a loyalty/rewards program, execute a quick reality check. Will you provide outstanding customer service, have got a quality products or services?
If you answered yes to any or all these questions, then you definitely are on your way to establish a loyalty/reward program that is solid and price effective.
And here is the pay off! It is possible to maintain your current customers and even more importantly gain new ones. You will find, even during a recession, every business can increase revenue using customer loyalty/rewards programs.