This is where referral and loyalty programs come in. Combined, they form a powerful tool that can both create ambassadors for your brand and keep your customers coming back again and again.
But to do this, you still need to use them properly. We have highlighted what makes these two tactics so interesting and profitable for your business.
Use a referral program to acquire new customers
One of the easiest ways to win new customers is to be recommended by people they trust. 77% of consumers are more likely to buy from a brand they hear about through their friends , and 42% of consumers are loyal qatar cell phone number to brands whose products are purchased by their friends and family.
These numbers show how valuable being recommended by a trusted source is to your business. A referral program is a great way to encourage more of these types of recommendations.
The principle behind such a program is simple: encourage your current customers to convince potential customers to try your brand. If these potential customers become real customers, the people who recommended your business to them are rewarded.
Referral programs are beneficial for both referrers and referees. Why? Because the prospect of a reward increases the chances that your current customers will promote your product or service, and a “trusted” recommendation increases the chances that potential customers will choose you over a competitor.
It may seem expensive at first, but the cost of acquiring new customers is usually much higher than the cost of a referral reward. And then, think about what you get out of a customer over a lifetime. Is it worth giving away a free product or discount to capture that “customer lifetime value”? Chances are the answer is “yes”!
loyalty program
Keep your customers coming back again and again with a loyalty program
Everyone knows that variety is what spices up our lives. It’s the same with loyalty programs. A classic “stamp card” tends to lose its effectiveness and appeal over time. Why? Because having only one option is boring.
The excitement and perceived value of a reward wanes every time a customer asks for it. Your most loyal customers are the ones who visit you the most: offering them the same reward over and over again can become repetitive and lose its appeal.
How to solve this problem? By varying the types of rewards you offer, quite simply!
By offering multiple options, you allow your customers to choose the one they prefer, instead of limiting them to just one option. If you currently only offer one type of reward, why not mix it up with free menu items, merchandise, a buy-one-get-one-free promotion, or VIP access to special events?
Building “reward tiers” is another way to add value to your loyalty program. Once a customer has accumulated enough points, they move up a tier, which gives them access to a new set of rewards. The higher the tiers, the greater the rewards. Naturally, customers will want to move up as many tiers as possible to gain access to the best rewards.