It is often considered that a powerful and effective CRM program can accelerate your sales and allow you to continually satisfy your existing customers. How does it work? How much is it worth investing in term of time and resources?
As it turns out, it is more productive for establishments to maintain a good rapport towards their already existing customers, than constantly looking out for a new audience. Companies usually need to spend lot more resources to acquire new customers than to sell to an already existing customer. An existing customer is also likely to spend more on another product from the same company than a newer customer, as has been pointed out in this study.
In lieu of this, companies need to expand their horizon and put serious efforts into developing an effective loyalty program. In this post, we will try to discuss and design some of the ways in which you can develop an efficacious loyalty program to interest your existing customers to keep coming back to you.
Elements of A Potent Loyalty Oriented CRM
1. Good Communication with Leads and Customers
It is essential that you maintain good relations with your customers and relevant leads. While establishing communication it is essential that you maintain rational value-based content for your clients, rather than spamming them constantly with subscription notices. This can be done with an effective CRM software that combines valuable customer data, with the growing market trends. In addition, you can also provide them with personalized tips based on this data to create an impression of belonging for the customer. CRM software also help you maintain regularity in scheduling and sending reminders that would be of some interest to your customers.
2. Make Your Program Elite, Yet Rewarding Enough
The essential component of a loyalty program is to enable customers to make more savings through extended usage of products from your establishment. This is crucial to keep customers to not only stick to your loyalty program, but to your company as a whole. It is also crucial to make the program elite enough, giving customers special and personalized reward privileges. In this regard, discounts and offers in certain products can largely keep customers interested.
3. Addition of Charity Elements
Who does not like the fact that a portion of their expenditure goes to charity, while not having to pay extra for a product. Well, to save extra costs and still maintain a good rapport you can channelize a few resources attained through the loyalty programs into charitable causes. This would result in your customers forming a healthy bond towards a right vision and help them envision greater value in your brand.
4. Involve other Businesses
By involving other complementary businesses through your loyalty program, you will be delivering greater value to your existing customers. In addition to helping you earn revenue by redirecting to these businesses, customers will immediately associate your brand with a one-stop arena for all their needs.
5. Frictionless Signing up Process
It is essential to make your signing up process easy and simple for customers. Instances like forcibly making them give in their credit card details should be avoided. Rather than turning it into a revenue generating structure, it should be more oriented towards customer luxury. With such an approach, it will not only generate revenue in the long run but will also keep your customers hooked.
How Essential is a CRM Software?
Companies worldwide are switching to CRM software to maintain and regenerate their loyalty programs. As it turns out, it is crucial. With a market that is ever so dynamic, a CRM software will work as an enabler to effectively monitor changing trends and customer preferences so that your loyalty program continues being valuable. These are some of the ways it can be a big change to your establishment.
- A good CRM software allows you to mobilize data effectively from your customer’s database and history. Information like time invested by customers in seeing through specific products, his/her reviews, and the way in which the customer’s purchase history has evolved can give you critical insights on what the customer might find valuable.
- By integrating your back-end algorithms to work hand-in-hand with your CRM software, you will be able to give better search results and user-oriented performance and product delivery. Thus, several aspects of your company and distribution chain can come together into leveraging your loyalty program.
To Keep in Mind
1. Use a Reward System Based on Points
By involving points in your rewards system in accordance to a customer’s purchases, you will be leveraging commitment and the added value he/she gets from sticking to your brand. A transparent point system also makes your loyalty program goal oriented for the customers, thereby indirectly making them more indulgent with other products from your company.
2 Charging A Fee can Turn Out to be Valuable
Yes, charging a fee for your loyalty program can sound absurd at first, but there are proven benefits. By doing so, you resolve some of the common issue faced by customers, while giving them enormous value in terms of what the value that they get out of it in the long run. A one-time charge also makes your customer base loyal to your business aspirations due to their investment towards it. This is more beneficial in businesses that allow for regular transaction and purchases than others.
3. Add a Pinch of fun
It is worthwhile to structure your loyalty program in terms of a game. This will keep customers interested and allow them to reap the benefits of their extended loyalty, which in turn can contribute to the accelerated growth of your company in the long run
So, What Are You Waiting For?
Perhaps, you might already have a customer loyalty program ingrained in your business structure. Keeping the above considerations in mind, you can improve upon the same. And if you are yet to have one, there can be no better time to leverage your advantage over competing businesses with an effective loyalty program by carefully planning your CRM.