Loyalty Discounts Are Key to Small Business Success
An easy way to give your customers a reason to come back is through loyalty discounts. According to Hicks Crawford of Business.com, “Loyalty marketing benefits small businesses, as it is more profitable to earn business from existing customers. In fact, 20 percent of your customers will generate 80 percent of your revenue.” Crawford, like many other sales analysts, is quick to point out that acquisition is a more expensive process – one that can cost up to 20 times more to sell to a new customer than to sell to one of your existing customers. (Business.com)
Small businesses, especially, are able to sell their products or services more effectively by creating brand loyalty in their existing customer base. Offering rewards or discount programs are the most effective way to keep customers coming back for more: “Businesses should absolutely offer rewards and discount programs to customers. Rewards and discount programs give customers more reason to come back again, especially in competitive retail and services markets.” (Business News Daily) Not only to loyalty discounts help businesses thrive by reengaging with existing customers, they also encourage customers to share their experiences with friends and family.
According to Grace Miller of Annex Cloud, a leading customer marketing software platform “A good rewards program can attract new customers in several ways…Customers who are satisfied with your brand may share their experience with friends even without a referral program.” (AnnexCloud) Take some time to evaluate your existing client base, determine secondary products or services your customers could benefit from, and offer exclusive discounts to purchase them. If your loyalty discounts are effective, your customers are more likely to refer your business to friends and family. According to a survey by Nielsen Company, 92 percent of those surveyed say they trust business referrals from people they knew. Take 2019 to tap into the power of referrals.