Ask any experienced business owner to describe the most challenging aspect they face when it comes to running a successful and profitable operation, and it’s a good bet their response will mention the process of attracting new customers. So if an enterprise – be it a family-owned shop or a corporate heavyweight with offices located from coast-to-coast — is investing extensive resources in landing clients, doesn’t it make sense to extend some efforts in retaining valued existing customers, too? That’s where the concept of loyalty marketing is involved, and the process is gaining popularity in the industry.
What is Loyalty Marketing?
Loyalty marketing assists business owners in the delicate art of building rapport with existing customers familiar with what the seller has to offer. Engaging in loyalty marketing efforts is a driving force in creating repeat customers; after all, satisfied customers are far more likely to return for repeat business.
There are countless examples of loyalty marketing initiatives encountered in the daily lives of consumers, and these efforts can be successfully applied across a wide range of industries. Many movie theater chains provide customers with an opportunity to sign up for frequent movie-goer card discounts that entitle card holders to special incentives like free popcorn and soft drinks. Grocery store chains might offer guests a chance to sign up for loyalty programs — providing discounts on entire purchases — that can be enjoyed exclusively by members. Gas stations may provide reward-point based systems following fuel purchases that entitle customers to free fountain drinks.
Discounts and free goods or services aren’t the only way to leverage loyalty marketing in Michigan and beyond effectively. The process can be as simple as honoring a competitor’s coupon — a great way to foster good will – or extending the life of an existing coupon on a one-time basis.
If customers already exist, why not invest in some relatively low-cost initiatives to keep those guests coming back for more? That’s the inherent value provided by loyalty marketing.