Loyalty is a state of mind. From a marketing standpoint Loyalty helps us increase market share, increases continued patronage and increases referrals. We need to create experiences worth coming back for, and with new customers getting harder and more expensive to acquire, why not not focus on the three ways to increase your business ….through Loyalty?
THREE WAYS TO MORE THAN TRIPLE YOUR BUSINESS THROUGH Loyalty
Recency, Frequency and Monetary (The RFM formula)
1. Increase the number of clients you do business with.
2. Increase your average dollars per sale.
3. Increase the frequency you do business with your clients.
Increase 1 or 2 – yield substantial increases in your gross sales volume.
Increasing all 3 – yield exponential increases in your gross sales volume.
TO DOUBLE YOUR SALES – it only requires a 25% increase in all three critical numbers.
TO TRIPLE YOUR SALES PLUS – it only requires a 50% increase in all three critical numbers.
THE BENEFITS OF DEVELOPING A Loyalty BASED MARKETING PROGRAM
• Loyal customers spend more – Even in tough times, loyal customers still represent your most profitable category.
• Loyal customers cost less to serve – The more "self service" your customers become, the lower your costs to serve them.
• Loyal customers are less price sensitive – Price is an important consideration, now more than ever, but not the only variable.
• Loyal customers are more forgiving – Let's face it, you've built up an emotional relationship with them over time.
• Loyal customers have greater profit potential – New customers often have to be brought in with price discounts and incentives.
• Loyal customers are more likely to pay full price, and the pay back is quicker.
• Acquiring customers without discounting will yield a more loyal customer.
• Loyal customers help us improve. They are the most cost-effective "consultants" you can talk to.
As businesses we are looking for the most profitable relationships.
As customers we are looking to do business with companies that offer the best value proposition and deliver the best experience.
GET THE MOST OUT OF YOUR Loyalty PROGRAM – OR START ONE NOW!