Surveys have been conducted in recent times to prove that retention marketing is more effective than acquisition marketing. For those that do not understand the concept of retention marketing, it involves creatively using loyalty rewards to keep your customers happy and encouraging repeat business. 70% of companies say it is cheaper to retain an existing customer than acquire a new one. 49% of companies claim to achieve better ROI in relationship marketing in comparison to acquisition marketing. (Source: Socialtimes)
Partnership – Partnership with some stores where your product is stocked or other businesses that offer parallel services can help boost your brand and retain customers. Your points card can offer you insights into what other products your customers purchase and if they are parallel businesses, you can consider partnering with them to offer rewards to your customers.
Gamify your rewards – Games are always fun regardless of the age of your target audience. Implementing country and age appropriate games for the target market helps increase brand awareness but also rewards your customers and retains them. Gamifying your rewards also increases the virality of your campaign so whether or not people are initially participating, they will hear about it and be curious enough to participate. This also reduces your customer acquisition cost and kills many birds with one stone.
For each campaign you run, measure the new customer retention rate once the campaign is over. The most accurate results are three months after the campaign to measure who stayed back after the frenzy. Measure how many customers acquired more products or services within your offerings also. That depicts the success of the campaigns you have run.
We at Sproxil have helped clients run very effective loyalty rewards campaigns with great success. Our loyalty rewards product is called Sproxil Champion which is a flexible point-of-sale consumer rewards solution with built-in fraud protection that empowers brands to offer consumers convenient opportunities to earn and redeem gratifying rewards from the brands they desire.
What creative loyalty rewards strategies have you deployed in the past? We would like to hear from you. Leave a comment.