Research shows that businesses overspend on marketing. That statement probably isn't a surprising one, but what may surprise you is where most of that money goes. It can cost up to eight times more to attract new customers than it does to serve and reward the customers you already have.
Looking at the equation from that angle, where does it make more sense to invest your promotional money? That's part of what this installment of the Plastic Printers template of the week is all about.
Yes, you can continue to overspend on expanding your customer base; however; once your initial growth spurt is over, your investment strategy needs to be adjusted so that it focuses not only on expansion, but also retention. In politics this is called:
The rules of business and the rules of politics have always been closely linked. Chances are you're not the only game in town that offers a certain product or service. The professional sphere is just too large for that rule to universally apply anymore. Therefore, you have to find a way to differentiate your business from others like it. That's where a gift card program comes into play.
This feature is easily added to an order of gift cards, VIP cards, discount cards, or rewards cards. It can also be set up independently and customized by you. If you are already planning on offering customer incentives, a gift card program is the next natural step.
The best thing about it, is that it can operate automatically. All you need to do is follow a few simple instructions:
Step #1: Assign a points value. Loyalty programs are tracked using a points system that is linked to customer purchases. The most popular equivalent is $1 per point or $1 for every 10 points. Whatever value you choose, keep it simple enough for your customers and staff to remember.
Step #2: Designate awards & redemptions. The points needed to lead to a reward. When that reward occurs and what it is, is up to you. Businesses usually have a reward scale where several prizes or incentives are available at various levels depending on how many points the customer has accumulated. This could be anything from a free meal or movie rental to a substantial discount on their most frequent purchases. Stores have even structured their rewards programs around seasonal drawings and shopping sprees.
A gift card program like this is popular among business owners because they can set the parameters and the points are automatically added to customer cards without any manual revision necessary. It's not uncommon to offer double point promotions on your slowest days to help bring customers and build loyalty with those customers.
Step #3: Automate it. This is the easiest way to handle point accumulation and reward redemption. Simply set the parameters of your gift card program and the system does the rest. It will automatically offer rewards to customers that have reached a certain point value. This is especially popular for gas stations, grocery and convenient stores. The automation motivates customers to return to the business because they have points to earn or rewards to redeem.
Step #4: Tracking; it's a two-way street. While you're tracking customer purchases for data; your customers will want to know how many points they've racked up. Make the information as accessible and available as possible. Every time they visit one of your brick-and-mortar locations they should get a loyalty receipt. If they shop online, make sure they can use their card number to track their purchases and rewards. Make it simple, and you will have happy customers who repeatedly promote and frequent your business.
Step #5: Read the mining reports. Gift card programs take analytics to a whole new level. You used to only be able to retain a customer's contact information for direct mailing or coupon campaigns. Now, you can track up to 10 subcategories that will help you to individually customize and target your marketing efforts. Once again, you set the parameters and decide which key staff members have access to the reports. This makes loyal customers truly feel like VIPs. It also helps you to track and use your marketing dollars better.
Did I mention that you can start a gift card program at no cost to you? Now that you know how it works, simply contact us by phone or through our website: http://www.plasticprinters.com and we’ll walk you through the rest. We can even custom design the gift or loyalty cards that will go with your program.
Take some time to think it over and contact us when you're ready to get started. Just don't wait too long. After all, the holidays are right around the corner. If you get a loyalty program in place now, it will make managing the holiday rush that much easier.
Let Plastic Printers help you make life easier. Download a free gift card template from our website and test out your loyalty program today!