{"id":13027,"date":"2019-12-12T11:19:40","date_gmt":"2019-12-12T05:49:40","guid":{"rendered":"https:\/\/www.techjockey.com\/blog\/?p=13027"},"modified":"2024-10-04T14:04:37","modified_gmt":"2024-10-04T08:34:37","slug":"customer-loyalty-program","status":"publish","type":"post","link":"https:\/\/www.techjockey.com\/blog\/customer-loyalty-program","title":{"rendered":"Customer Loyalty Programs: 10 Top Tips for Customer Retention in 2025"},"content":{"rendered":"\n
Customers are the backbone of any business. Without customers, there is no demand, no sale, and no business. If we look at business with the perspective of customer relationship management (CRM), there are three stages to it; customer acquisition, customer engagement and customer retention. <\/p>\n\n\n\n
According to Forrester, marketers focus on\ngaining new customers while not paying attention on customer retention. One of\nthe mistakes that businesses often make is to assume that if they offer good\nproducts or services, customer would continue to be loyal to their brand. <\/p>\n\n\n\n
Let\u2019s look at the reasons at why consumers\nleave a brand and move to a different one. <\/p>\n\n\n\n
Client Acquisition Vs Customer Retention: Which Strategy Works Better<\/strong><\/p>\n\n\n\n Let\u2019s look at the two scenarios: <\/p>\n\n\n\n Scenario 1: <\/strong>You focus solely on new customer acquisition by spending all your time and money on branding, advertisement, pitching and conversions without thinking about retention.<\/p>\n\n\n\n Scenario 2: <\/strong>After a new customer has been acquired take care of a customer post sales, by sending them loyalty offers and messages under an organised customer loyalty program.<\/p>\n\n\n\n Which one of the two seems easier and which\none ensures a regular sales flow?<\/p>\n\n\n\n The easiest and more efficient way of the two is obviously to acquire a customer and improve customer retention. Customers who are already aware of the products and services of a business, could easily be retained by offering them customer loyalty program. <\/p>\n\n\n\n Now let\u2019s look at this analysis:<\/p>\n\n\n <\/p>\n\n\n\n According to this chart, existing customers are five times (87%) more likely to purchase from the same brand again, and four times (79%) more likely to recommend the brand to their family and friends.<\/p>\n\n\n\n Hence, businesses need to come up with\nstrategies to retain their valuable customers and create a robust consumer base\nto earn more profits. <\/p>\n\n\n\n Here are 6 cases where brands employed\ncustomer retention strategies and saw a massive transformation in their sales\nand overall brand recognition:<\/p>\n\n\n\n Tesco used mass-mailing as one of the\ncustomer retention strategies for marketing when they started. But after a\nyear, they faced issues such as bounced emails and invalid addresses.\nMeanwhile, its customer loyalty program also failed, projecting a decline in\nshoppers. <\/p>\n\n\n\n Tesco wanted to understand the mind of\ntheir customers and figure out ways to be a priority brand in their purchase\nchoices. Hence, they used data from researchers focusing on customer\nsatisfaction. By understanding market trends, consumer behaviour and combining\nit with the data from their club card, they learned how to put the customer\ninto the centre of their decisions.<\/p>\n\n\n\n Tesco started to look at how they catered to\nthe expectations if customers with personalised offers. In addition, they have\nbeen able to understand their purchasing behaviour, helping them offer deals\nthat customers would prefer. <\/p>\n\n\n\n Over the years, Apple has garnered a loyal\nconsumer-base across the globe. In fact, according to a study<\/a>\nconducted by simonlycontracts.co.uk, 59% of the 2,275 iPhone users admitted to\npurchase iPhone because of \u201cblind loyalty\u201d. <\/p>\n\n\n\n But what is the reason for this blind\nloyalty? The key lies in making a brand identity which can be relatable for\nusers. Steve Jobs always believed to make the brand a statement in itself. With\nits innovative periodic updates that evolve with time, to its simple yet\nelegant design; apple ensures every product is created to resonate with the\nconsumers. <\/p>\n\n\n\n Suggested Read: Text Messaging for Customer Retention: Everything You Need to Know<\/a><\/strong><\/p>\n\n\n\n Amazon began its journey from Jeff Bezos\u2019s\ngarage at Washington as an online bookstore and has now become one of the\nleading ecommerce platforms across the globe. What makes its consumer base\nloyal is more prominent, due to its premium customer loyalty program, Amazon\nPrime. <\/p>\n\n\n\n According to a study by LoyaltyLion, Amazon Prime members, on an average, spend more than four times than regular Amazon shoppers.<\/p>\n\n\n\n But Amazon goes a step further than Costco\nand provides more perks than any other ecommerce platform, which includes\nAmazon Prime Video streaming service, express delivery, and no delivery charges.\n<\/p>\n\n\n\n This makes customers feel that they\u2019re\ngetting more than what they signed up for and remain loyal to the brand.<\/p>\n\n\n\n For generations, Cola Cola has been\nhome to a loyal customer-base and with each generation it gains more. One of\nthe most striking features of the brand is its ad campaigns with tough the\nheart of millions. <\/p>\n\n\n\n With taglines such as \u2018Happiness is to\nShare\u2019 people of all ages remember its ads. Coca Cola engages masses with their\nheart-warming messages to make the world a better place.<\/p>\n\n\n\n For instance, presently, the \u201cShare a Coke\u201d\nonline and offline campaign encourages communities to come together. This gives\nthe brand a humane personality that is loved by all. This brings customers\nback, again and again.<\/p>\n\n\n\n If we talk about a brand whose foundation\nwas laid on customer loyalty, Starbucks is the ideal example. Starbucks started\ntheir first coffee shop in 1971, but what transpired to make the brand a public\nfavourite?<\/p>\n\n\n\n In 1982, Howard Shultz, was hired as the\nhead of marketing and he observed that often customers felt uncomfortable due\nto their lack of knowledge about coffees. Therefore, he developed a\ncustomer-friendly strategy that made it easy for customers to understand the\nproducts with the help of brochures. This made them come to the store again and\nagain. <\/p>\n\n\n\n However, the company\u2019s founders Baldwin and\nBowker wanted the establishment to be nothing more than a coffee machine\nseller. So, Schultz left the organisation and came up with a new coffee chain. <\/p>\n\n\n\n The tables turned when in March 1987,\nBaldwin and Bowker declared their plan to sell Starbucks, which was quickly\nbought by Schultz. He merged his own coffee chain with it and with time, Starbucks\ncame to be known as the largest caf\u00e9 chain in the world. All of this wouldn\u2019t\nhave been possible if Schultz hadn\u2019t put customers before the company\u2019s\nfunctions. <\/p>\n\n\n\n Today, Starbucks is gaining more popularity as its new chains are opening worldwide. Their key focus still lies on customer engagement, experience and connect. With \u2018My Starbucks Rewards\u2019, their customer loyalty program<\/a><\/strong>, \u2018purchasing coffee and adding loyalty points to get prizes\u2019 became easy. <\/p>\n\n\n\n<\/figure><\/div>\n\n\n
<\/span>Customer Retention Strategies: 6 Best Examples on How to Build Customer Loyalty<\/span><\/h2>\n\n\n\n
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<\/span>Tesco<\/span><\/h3><\/li>\n<\/ul>\n\n\n
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<\/span>Apple<\/span><\/h3><\/li>\n<\/ul>\n\n\n
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<\/span>Amazon<\/span><\/h3><\/li>\n<\/ul>\n\n\n
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<\/span>Coca Cola<\/span><\/h3><\/li>\n<\/ul>\n\n\n
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<\/span>Starbucks<\/span><\/h3><\/li>\n<\/ul>\n\n\n