How to Convert Loyal Customers into Digital Assets
Repeat business is good business. We share tips on how to create a digital solution that increases sales and keeps customers loyal.
Loyalty programmes may seem like an old-fashioned marketing technique but they’re still popular today. Research conducted by YouGov reveals that 77% of UK-based survey respondents belong to a loyalty programme. Even more encouragingly, 72% believe that these initiatives are a “good way to reward customers”.
Clearly, this tried-and-tested marketing tool still holds great value. While there are several ways to run a loyalty programme, the primary goals remain the same: to increase sales and build a base of loyal customers.
Many programmes use a stamp card system to incentivize repeat purchases. Customers receive a stamp for each purchase, building up to a specified amount before receiving a free product or discount. A coffee shop could, for example, run a promotion where customers buy five beverages and receive their sixth free.
The beauty of running a loyalty programme is that it benefits all parties. You’re able to lock customers in to reduce churn and increase sales, while customers receive tangible rewards for their loyalty.
Analogue or digital?
In an environment where customers depend on their digital devices, it makes sense to move from a traditional printed loyalty card to a more modern, user-friendly digital version.
The digital approach offers all the same benefits, along with a raft of additional advantages:
● Collect contact information When your customers sign up and you gather their contact details (in compliance with laws like the General Data Protection Regulation), you’re instantly turning your everyday, anonymous customers into valuable, contactable digital assets. You can stay in touch with people who have already shown an interest in your products. This provides you with an opportunity to extend the value of your marketing investment beyond repeat purchases of the same product.
● Gain actionable insights A digitally-run loyalty programme allows you to gather data on your customers’ buying behaviour. Knowing when, where and (possibly) how your customers buy your products can provide intelligence for targeted remarketing campaigns.
● Make it easier for your customers With a virtual card, customers can always access your loyalty programme and its benefits. They’re always carrying their mobile phones.
Is this a viable option for small businesses?
Many companies think that developing a mobile app is the only way to create a digital loyalty card. However, this can be a time-consuming and costly process.
Fortunately, there is another way to approach this project. You could develop an online version of a digital stamp card that’s housed within your company’s website. When customers want to access their card, they simply login via your website on their mobile devices. In a few simple steps, they’re ready to redeem their loyalty stamps, points or rewards.
This means that your business can avoid going to the expense of building a standalone app. Also, there’s no need for your customers to install yet another app on their phones. An online loyalty card is the simpler option. It’s just as easy to access and manage as an app.
Another business benefit of housing your digital loyalty card online is that you’re building a strong funnel of business leads. Now that you have customers as digital assets, you can analyse their buying behaviour and discover how often they make purchases in-store. If there’s a customer who has not activated their digital loyalty card in a while, you could send them an SMS with an exclusive special offer, such as the opportunity to get two stamps for one purchase if they visit your store before a certain date.
In other words, you can now send reminders, promotional offers and other automated messages to specific customers based on their real-world activities. These messages can be distributed across all your communications channels, including SMS, email and social media – truly transforming your website into a valuable business tool.
When it comes to designing and developing an online stamp card, it’s critical to create a simple and user-friendly tool that is easy to access by both customers and employees.
It may be necessary to partner with an expert website development and digital marketing agency to ensure your digital loyalty programme’s success.
Kri8it can help
We have the digital marketing expertise and website development skills to build a cost-effective digital solution for your loyalty programme with minimal disruption to your existing website. We can also ensure that you gain maximum value from your loyalty programme by enabling you to reach and convert one-off customers into repeat customers across all your chosen channels.
Keen to create your own digital loyalty solution? Contact Kri8it today.