It is a well established business principle that retaining existing clients costs less than finding new ones. The internet has given consumers more choice than ever before, making it harder to retain customers through inertia alone.
In the current marketplace, data and convenience are king; consumers have all the information about your business and your competitors that they could need. Therefore it is crucial to get your business found, and once it is to maximise retention and revenues.
To achieve this, business owners need to find ways of keeping their business in the minds of their customers, in as user friendly and convenient a way as possible.
Technology & Customer Loyalty
One of the pioneers of customer loyalty technology was Tesco. The introduction of the clubcard allowed the company to tailor the offers it sent to the buying habits of individual customers.
This could be used to encourage them to come back, but also to spend more whilst in-store by incentivising certain purchases and creating urgency by putting expiration dates on reward vouchers.
The internet and mobile app technology has only increased the importance of communicating with customers. Firms now use email, text messages, and app push notifications to get their latest products, services and offers in front of their existing customers.
The effective use of these methods can allow businesses large and small to increase customer loyalty and revenues. The impact can be huge even for a one outlet shop. For example, if a cinema can use vouchers, emails, text or app messages to get the person to buy a £10 cinema ticket one more time a month than usual, this can have a substantial impact on income.
This will generate an additional £120 worth of revenue per person before any confectionary or drink sales. Getting your customers to come back and come back more often can be a huge and efficient way of increasing revenues without having to find new customers.
If every customer in this cinema came back just once more a month than before, then the revenue increase could be massive.
Maybe it is time for your business to see how technology can increase customer loyalty and revenues?