With such rampant competition in just about every sector, thanks to the accessibility of the internet, customer loyalty is more important than ever. Figures across the board on loyal customers vs. gaining new customers showcase as much. The big one is that gaining new customers often costs as much as five times more than it does to simply retain an existing customer.
From there, loyal customers spend over 30 percent more, on average, and are around 50 percent more likely than new customers to try out any new products. Selling to a loyal customer has a hit rate of at least 60 percent, while trying to sell to new customers is only successful one-in-20 to one-in-five times. So, here are some key tenants of achieving customer loyalty with some prime examples.
Bonus incentives
Bonus incentives are both the most clear-cut and scariest options for many brands. At a time when the margins are becoming shorter and costs are on the rise, taking the plunge with a promotion that will essentially give products or services away for free can be daunting. However, bonuses, free giveaways, and discount promotions have been around for so long for a reason: they work.
Quite simply, it taps into the reciprocity principle, which believes that people tend to feel subtly obliged to pay back when they receive things from others. If your brand can offer regular and appealing bonus offers, it will encourage continued loyalty. This spans numerous industries but is perhaps most prominent within the iGaming sector, where entire sites dedicate themselves to the concept. SiGMA is a gateway to honest reviews and exclusive bonuses, enabling users to make informed opinions in line with their preferences and access bonuses at various outlets from one central location. Offers mostly come in the form of deposit bonuses and promo codes for free spins – both of which grant value to customers.
Modern subscription models
Modern subscription models are, essentially, a way of spreading out what would be a higher initial cost, increasing accessibility. The method also inspires loyalty through long-term contracts – especially if a good amount of quality is offered throughout. Alternatively, rather than a pure subscription model, some offer a subscription that’s at a lower price per product when also allowing for one-off purchases, such as with magazine subscriptions.
The key is keeping engagement high, offering value for the cost, and even expanding from a core focus of the subscription into other areas. This increases its appeal and makes it less likely for someone to unsubscribe as they’d lose access to other aspects. Of course, the titan of this approach is Amazon. Prime is very much for the free next-day delivery service, but subscribers also get accounts on Prime Reading, Amazon Music, and more.
Increased competition
It’s all so easy for customers to compare prices these days, and for many, the bottom line is the main focus of competition. That said, a UK study found that only three in ten people search online for comparison sites now. Matching or slightly bettering the competition on popular products can greatly help to increase loyalty, if for nothing more than the price. Get them in with a low price on a popular product, and then watch them spend more on other products. Some even go to extremes, as Uber did with their loss leader strategy on pricing, which has only recently proven fruitful.
Achieving brand loyalty isn’t always easy, but with a tailored application of the methods above, it can be achieved.
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