You know they're there; your fans, your supporters, your sweet spot. Put them in a club and make them feel special. If you do, they'll reward you with more frequent purchases and word-of-mouth buzz. Even if you consider yourself a superb marketing executive, you are more than likely unaware of the fluctuation of your company's loyal customer base or the specific reasons why it changes. With a loyalty club you can gauge, analyze and poll your loyal customers 'til your heart's content. They like it. It makes them feel special and part of the brand.

Developing and putting into practice a handful of simple customer loyalty practices will produce an immediate boost in the favorable attitude and dependability of your customer base. Start quickly, hone your techniques, measure results and watch your loyalty levels emerge and grow. 

Top Three Customer Loyalty Best Practices

First off, make sure that your customers are satisfied. Don't think that they are satisfied, know that they are satisfied. Be prepared to alter your product or service accordingly. Basic business practice dictates that meeting or exceeding your customers' expectations of high quality each time, every time, is the most basic building block of customer loyalty.

Second, be respectful of your customers complaints. Often, they are your most loyal customers. Complaints resolved quickly produce loyalty. Use feedback and manage appropriately. Analyze feedback from phone calls, comment cards, customer surveys and letters; organize the responses to identify trends. The payoff is customers who will be enthusiastic cheerleaders and advocates. A complaint handled correctly turns into a loyal customer who feels taken care of and appreciated.

Thirdly, develop a reward system. Ask your frequent fliers to be in a club. No matter what you call them: clubs, societies memberships, or rebate programs, they all create a strong bond to the brand and continue to deepen the familiarity to the product. You're basically speaking directly to your target market which is exactly where you want to be. Giving your fans an insider's view or a sneak peak creates an excitement that rolls into buzz and eventually sales. We've seen up to 31% more gross sales from loyalty club members and NEVER less than 4% above the average purchase from a raw customer database. The reward has to be worthy, season appropriate and desirable, so be creative and give your fans a taste of what they want.

Case Study: After several years of working for the active, yet fatigued, Thomas Kinkade Collectors' Society we were faced with the task of estimating and budgeting membership renewal rates. The membership had fluctuated approximately 15% over a three year period and we wanted to curb attrition in order to gain ground. While still trying to make money yet give the collectors something they wanted, we offered a simple limited time early renewal discount which was met with overwhelming success. We saw a 42% increase in renewal rates by offering a 10% reduced fee for renewing early. That's huge. Not only did the customer feel rewarded for being loyal, but the cost to send out 3-4 mailings for the renewal was eliminated with an overall gain for the company. The offer was limited and strictly adhered to, so members were not skeptical about the offer.

Be warned!  Loyalty programs can also be dangerous if not managed. They are not just database lists of customers who have paid you twice. These members expect something for their loyalty and you need to give to get. Be willing to offer discounts, unique products or upgrades. Deeper than regular discounts, limited edition colors, embossed accessories, over-the- top packaging and thank you events are all examples of rewards that have worked well for us. If, however, you offer a limited product or event, be very clear to your audience that all members are not guaranteed access, "first come, first served." While members of your loyalty group can be your biggest fans, they will also be more upset if they do not receive items they believe they deserve or have earned. Also keep in mind that research shows that the loyalty can fade if the activity of the organization fades. Do not mistake a loyalty member with a loyal customer.

Loyalty programs are an excellent way to tap the pulse of your target market. They can be extremely insightful, profitable and fun. Depending on your company's needs and resources, a loyalty program can be so successful that it evolves into its own business center- or it can merely be a list to send holiday cards to, whichever you prefer. Positioning your company to concentrate on customer loyalty, satisfaction and engagement is no absolute cure-all for success, but a plethora of data exists to prove that companies who do not put their customers first are short-lived.

For expert help in greatly improving your revenue with the creation or maintenance of your company's loyalty program, give us a call!