During this recession, the most important thing you must do is protect your existing customers. Small business has plenty of obstacles to deal with, such as staying on good terms with your bank, finding new customers, having to cut staff (but hopefully not) and, of course, healthcare issues.
But your existing customers are yours. You must protect them at all cost, if necessary. That’s why customer loyalty is the key ingredient to protecting these sacred customers. After all, it’s difficult enough to find new customers in today’s economy. So don’t let the ones you have slip away. This blog post is testament to how much power loyalty has today and why it’s so important for you to be understanding marketing so you can keep your customers satisfied and loyal.
Lan Nguyen wrote an article recently for TheStreet.com talking about all kinds of ways you can beef up your loyalty and rewards programs. It’s ultra important to offer great deals to lure customers back by providing them with a loyalty card. Whenever a customer buys from you, give them rewards on the spot (either product/service-based or straight cash).
Daily give-away contests are also a great way to foster a sense of community because you establish your store (or Web site) as THE place to go each day to check out what’s going on. Leverage a social media campaign to spread the word about your community.
Forget discounts. Promote the fact that you now have every-day low prices. In this recession there’s a reason why companies like Wal-Mart and McDonalds are actually making more money. It’s because the whole world knows that right now it’s all about value pricing. And for household goods or a burger, you’re most likely heading to these two places first for a great low price.
Above all else, place a high priority on re-training staff so that you truly offer the best customer service anywhere around. Make your staff feel like they’re even more part of the team so that they feel a great sense of urgency and ownership to help the company get through this very trying time. Always realize that your loyalty programs can also go a long way towards securing a positive reputation as well.
The recession will continue to force you to think long and hard about how to keep your small business going. You may even find yourself thinking back to the days when you had a lemonade stand. But always remember that if your customer has a reason to keep coming back for more, odds are you’ll be just fine on the other end of the economic turnaround.
What are the components of your loyalty or rewards program?
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You can’t buy loyalty - period. If all you’re doing is coupons, discounts or deals, you’re not engaging their loyalty, you’re simply creating a frequency scheme. And frequency schemes don’t work long term and waste valuable resources in the short term.