In competitive markets, it is common to see CMOs investing too much in attracting new leads to reach their conversion goals. However, they end up putting aside a crucial portion of the audience: those who are already clients.
Yes, keeping new clients coming is crucial egypt phone number data in any Digital Marketing strategy. But customer loyalty is the key to reach sustainable growth in any business.
So how about exploring more possibilities on the matter? Let’s talk about what it is, why to do it, and how to plan a perfect customer loyalty program. We’ll cover the following topics:
- What is customer loyalty?
- What are the benefits of having loyal customers?
- How to implement a customer loyalty program?
- 5 examples to get inspired
What is customer loyalty?
The concept of customer loyalty itself doesn’t hold any secrets. First and foremost, it is an indicator of how likely a customer is to repeat the experience after their first purchase.
But the term also refers to the method in itself. It conveys the strategies, tools, and actions that help people to become regular customers, whether buying products or using a service continually.
A loyal customer usually becomes a company’s asset. They are your closest link to the target audience and a personification of the ideal client.
Searching for more of these individuals and getting to know them better are fundamental steps to reach constant and ever-growing sales.
What are the benefits of having loyal customers?
It is hard not to see loyalty as a good thing in any scenario. After all, it’s about clients buying more from you.
However, it is vital to understand what a good people-based marketing and first-party data: the value of data… and relationships loyalty program means in practice.
That involves getting to know the various benefits it brings to a Digital Marketing plan and its business. So here’s a list of the main ones!
Selling more to converted clients
There’s a vital indicator for online businesses, especially virtual stores, that’s directly linked to customer loyalty. We are talking about Lifetime Value (LTV).
LTV shows you how much time on average a lack data person stays as a customer and how much they spend in that period.
Improving this KPI can maximize the return of each new client. We know how hard it is to get them, so why not make the most out of this after winning a customer?
Reducing costs in marketing
As a marketer, you are aware of the costs involved in attracting new leads from the start.
Such work includes helping them know your brand, getting their attention, making them consider the options, and convincing them to buy.
Customer Acquisition Cost (CAC) is always higher when the buyer journey is longer. That’s why you should focus on those who are already closer to another purchase.
Therefore, having a balance between getting new leads and nurturing converted clients is the best strategy for a lower CAC.
Getting predictable income
A loyal customer base is always consuming something from your brand. For retailers, this is a competitive advantage.
So, instead of working all year to get seasonal income, take advantage of customer loyalty to make your business have profit all year long.
After all, a predictable cash flow helps planning and expanding at a constant rate.
Creating a solid user base
Most customers come and go, but those who stay form a core that gives your brand stability.
A loyal audience is eager to share thoughts and data about their habits, expectations, and experiences.
Getting to know such customers better will reflect on how you attract new ones like them.