If you currently have a few seriously loyal clients and a few who seem to come back fairly often, why not try out a customer loyalty program?
The fact is that 68% of customers leave because they feel brands do not care about them, and the cost of these lost customers can add up fast. It’s estimated that acquiring new customers is 500% more expensive than keeping old ones.
Loyalty programs work with your repeat clients because the more often they come in for a massage, the more often they can save on future sessions.
“Buy 10, get one free” is an example of a loyalty promotion that you can try. MD Spa Shop suggests, “Give customers two free punches to get them started and give them motivation to fill up the card.”
Another way to offer a loyalty program is to team up with other businesses that you can swap massage sessions for products and freebies. With these products, you can then set up a loyalty rewards programs where you clients can earn points with their sessions, and then gift them with products for a certain number of earned points.
Referral programs are another way to reward loyalty: for every friend, family or co-worker your regular client refers, offer another series of points and rewards.
Read the following blog to learn more about the “science” of customer loyalty.
The Science Behind Customer Loyalty
One way of looking at customer loyalty is to think about the underlying behavioral psychology.
Today’s infographic is from West, and it outlines some of psychological principles surrounding customer loyalty, and how they can be applied to help retain existing customers.
Retaining customers is vital to success, but achieving a low churn rate is never an easy task. After all, customers can be fickle, and brands already invest millions each year to make sure they can handle extremely high volumes of customer interactions.
How can brands lower their churn, while making the most out of their customer interactions?
Five Ways to Build Customer Loyalty
Here are some tried and true methods that help build customer loyalty, and why:
1. Deliver unexpected rewards
Unexpected rewards produce a huge rush of dopamine to the brain. By rewarding customers when they least expect it, brands can really make an impression.
2. Start and end strong
People tend to have cognitive biases towards the first and last things they experience. By making sure the customer experience is strong at both of these touch points, odds can be improved that they will come back.
3. Create a social identity
Social identity theory shows that when people feel a part of an established in-group, they are more likely to stay loyal to that group. Brands can help by creating or nurturing these channels, allowing customers to develop bonds with each other, as well as the company.
4. Let customers share rewards
People are frequently motivated by helping others, so giving customers the opportunity to share benefits or rewards can create a new facet to the customer relationship.
5. Show customers you share their values
Studies show that customers rate shared values as a key reason behind their relationships with brands. Make sure you communicate brand values loud and clear.
Photo By Vhea