One of the greatest challenges any business faces is how to attract and retain customers. Today, consumers have a wide variety of choices when it comes to where they spend their hard-earned money, and only companies that stand out from the pack will earn their loyalty. Any organization can utilize incentives as part of their acquisition marketing efforts, but those that offer customers added value, such as through tailored loyalty rewards programs, are the most likely to see incredible results.
It goes without saying that customer acquisition is among the most important components of business success. However, marketers should consider that it’s possible to market to new clients while also supporting current patrons, giving them a reason to not only stay, but to lend the company their recommendations. Loyalty 360 noted that according to CrowdTwist, there’s a balancing act that organizations must engage in to achieve success. The social marketing firm noted that while many businesses allocate as much as 80 percent of their budgets toward acquisition, existing customers are responsible for approximately 50 percent of a company’s total annual revenues. Additionally, these loyal patrons spend about eight times as much as new clients per transaction and as such, for every loyal customer lost, CrowdTwist estimated that 5 new ones will need to be found.
One thing is clear: If marketers are not retaining their new acquisitions over the long term, they won’t be getting the ROI they’re aiming for. Instead of just attempting to get individuals in the door or onto the website, marketing teams should pursue solutions capable of reliably turning prospects into die-hard customers.
So how exactly do businesses maximize their acquisition ROI and transform new clients into loyal customers? The 2013 Retail Outlook Survey by KPMG LLP found that 85 percent of senior executives expect capital spending will increase or remain stable over the next year, and many may be allocating their funds to customer engagement strategies. When asked which technology-related trends are having the greatest impact on American retailers, 51 percent cited mobile and online promotions and coupons.
It’s no surprise that company leaders are considering coupons as a part of any strong customer engagement strategy. When discount programs are used as an incentive for acquisition or loyalty initiatives, not only can consumers save money, but the consumer will have a positive affinity for the company that provided them the savings through their incentive or loyalty program. After all, people love a deal. In fact, 74 percent of consumers look for coupons both on and offline each week, and approximately 92.5 million customers used an online couple in 2012.
But what will really set a business apart from its competitors and drive both acquisitions and engagement are unique value added incentives. No two loyalty rewards programs have to be alike, and customers will recognize one that’s truly made with their wants and needs in mind. By providing best-in-class offers as part of a loyalty rewards incentive program, companies can easily turn their new acquisitions into enthusiastic patrons, and it’s strong customer-business relationships like these that continually generate remarkable ROI.