Social proof is the oxygen equivalent for brands. And in this day and age, it’s easier to attain than ever, and loyalty programs have a big hand in that.
Spring has sprung! Along with the blooming flowers and lighter clothes, it's the perfect time to spring clean your loyalty program and give it a fresh start.
When it comes to brand growth, most business owners and marketing teams will tell you that they allocate nearly 80% of their marketing budget to acquiring new customers. In contrast, very little time or energy is spent on their existing customer base. This is surprising because studies have repeatedly demonstrated that loyal customers not only tend to spend five times more than regular customers but shop at those brands more frequently. Given that only 1 in 5 new customers will make a repeat purchase, it's imperative that your marketing strategy not only caters to your existing customer database, but that focuses on turning first-time shoppers into regulars... fast!
Smart marketing requires that brands focus on growing their customers' lifetime value (CLV). The higher the value the more profitable the business will be. CLV is mainly driven by customer retention. The concept is fairly simple—customers who are happy with the products and services of a company will keep on giving their business to them. The trick is finding a proven method to turn first-time shoppers into regulars and develop customer loyalty.