Loyalty strategy: a major business challenge
In terms of customer relations, every company has more or less known a time when acquisition was paramount. While it is still necessary, it is important not to forget loyalty, which is just as important, if not more so. Explanations.
Building loyalty to save money
In the complex world of marketing teams, many have heard the famous saying that retaining a customer is 3 to 6 times cheaper than recruiting one. Whether or not this is far from the truth, the fact remains that the process of retaining a customer is less costly in the long run than over-soliciting.
However, it would be unrealistic to say that this does not require a certain level of commitment and therefore a significant financial investment in order to offer ever more precise and relevant ways of building loyalty. Loyalty programmes, customer experience improvement, among others, are sometimes complex and costly to implement but remain more interesting and profitable than an acquisition strategy subject to the strict rules of highly competitive markets.
A loyal customer spends more
It's no secret that a satisfied customer is not necessarily a loyal one. It is therefore easy to imagine the efforts made to retain them. This effort pays off, however, because according to a study by Bain&Company, a company that increases its customer retention by 5% can increase its economic results by 25% to 55%.
Indeed, a loyal customer, as their seniority increases, will tend to consolidate more of their purchases within the same company, which will become more valuable over time. In other words, the more recognition a customer receives from a brand, the less their purchase decision will be influenced by price.
A better brand image
By adopting a hyper-personalized approach with the customer, we enhance their commitment to the brand. A real bond is developed with the company, enabling them to become the best possible ambassadors. This has many advantages, as it not only contributes to the company's results, but also allows the acquisition of new customers.
"Our mission at John Paul's for nearly 15 years has been to take care of the Customers that brands entrust to us, by assisting them and creating high value-added, tailor-made experiences for them. Our expert Concierges are available 7 days a week and are specifically trained to facilitate and enchant their daily lives. Our expertise creates a strong emotional bond between the brand and its customers." explains Olivier Larigaldie, John Paul Group CEO.
In the long run, a brand's entire offer will benefit from a good loyalty strategy. The services and products on offer will become better and the company's reputation will be enhanced.
