Successfully building strong relationships between a brand and its clients through an effective loyalty program provides many benefits:
The customer brings value to the company. That is why putting the customer first can be beneficial for everyone. This is advantageous for both the consumer, who will enjoy a service, trendy locations, interesting promotional operations, benefits, or specially dedicated and personalized rewards, and for the brand, who will bond with its clientele and make them want to maintain or advance with positive purchasing behavior.
“The shopping cart of an existing customer is 15 to 25% higher than that of a new customer”
For the company, the objective is to listen to and satisfy its customers’ needs, in accordance with the identity of the service or the product offered. The loyalty strategy thus retains existing consumers through previous acquisition strategies. The consumer will be reminded of the existence of a product or service, so it will stay fresh in his or her mind.
It is true that market saturation and the intensity of competition could make consumers less loyal to the brands with which they engage. In this respect, loyalty can become a competitive advantage, allowing a company to profit from its customer relationships. The cost of prospecting a new customer being higher than it costs to keep him or her, it is more worthwhile for a brand to retain current customers rather than go looking for new ones.
Building loyalty with clients also enables a company to strengthen revenue, less exposed to the whims of the market or an economic crisis. It will therefore be more able to finance development projects and increase profitability.
“92% of consumers trust brand ambassadors”
Amplified by social media, word of mouth and recommendations represent a very effective viral acquisition channel, especially with millennials.
Successful brands are those that form active ambassadors who hold the same values and bring credibility to marketing discourse, which consumers generally do not trust. Thanks to them, the brands broaden their customer base and therefore their revenue, while improving their image and their reputation on a daily basis.
Customer loyalty involves three strategic ambitions:
The goal is to advance the customer’s consumer behavior. This is to increase the frequency and amount of purchases or use of the service. This means selling more products (up selling) or products from another range (cross selling).
Not letting a customer down is part of the prerequisites to progress in the customer’s relationship with the brand. Hence the creation of thematic clubs, modeled on the stages of life, the customer journey, or on the consumer’s interests. These clubs should help to understand, use, or improve the experience of a service or a product. It is about going beyond the simple phase of give-and-take, and strengthening the emotional bond. This is often based on a unifying member card, messages, and personalized offers, defined according to the customer’s habits or interests.
“80% of your future business income will come from 20% of your existing customers”
Increasing proximity between the brand and its customer helps build a lasting relationship. Thus, proposing sufficiently important advantages so that the customer does not want to leave is what will make him or her feel valued: premium services, gifts, privileges.
At John Paul for example, we offer a range of solutions and relationship programs for our clients, allowing a company to both retain customers and engage its employees.
Discover a unique loyalty service that can create innovative and personalized experiences for your brand.
John Paul concierges are available 24 hours a day, 7 days a week, anywhere in the world. They are able to handle all kinds of requests, from the most basic to the most extraordinary. These experts support your customers and make their daily lives easier by taking care of their needs and wishes.
Capitalizing on our expertise, John Paul offers relational marketing solutions in white label. Animate the member database, produce content, manage personalized campaigns, create custom events or negotiate exclusive partnerships… Our teams can create multichannel tools in your brand’s name (showcase website, member space, mobile application, emails, magazine…). Create the best loyalty solution adapted for your business.
Respond precisely to your target’s expectations by enriching your customer database. Engage your customers in their areas of interest and anticipate their needs. Our CRM and data tools harness the latest innovations to deliver an ultra-personalized customer relationship.