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When businesses are considering their approach to building direct customer relationships, they often look at CRM and loyalty initiatives as separate disciplines. In the best customer-centric businesses, however, CRM and loyalty work in concert to engage a broad range of customers and develop much deeper relationships.
The modern business conundrum
Attracting customers is one of the hardest parts of running a business; keeping them is even more challenging. And it’s always the stable, returning customers who manage to keep a business afloat.
As it is, it’s 5 times more expensive to acquire a new customer than to retain an existing one. Furthermore, existing customers are evermore valuable, as they spend an average of 67% more than new customers.
It is no surprise then, that businesses are constantly looking for ways to inspire loyalty in their clientele. However, customer loyalty is becoming more difficult to foster — 70% of customers agree that technology has made it easier than ever to take their business elsewhere. So in a time when customers are constantly having their heads turned by better reviews and unmeasurable social “buzz,” how do businesses continue to woo their existing clientele?
Balancing the right kind of loyalty
Loyalty increases profits, improves sales, and allows for longer-term sustainable growth. However, it’s nearly impossible for businesses to get all their customers to use their loyalty programme. In fact, most customers only belong to 7 loyalty programmes, on average; they are selective and only commit to engage with the brands they love the most.
Loyalty-driven CRM plays a critical role here by allowing businesses to develop a quick relationship by delivering value through relevant and personalised communications and offers.
Loyalty builds on the relationship initiated through CRM strategies and creates a deeper connection with a business’s most valuable customers. When considering CRM and loyalty, it’s important to focus on 6 key attributes:
• Acquisition: Acquire new members with sign up deals to on-board them by the masses.
• Value exchange: Establish a mutually beneficial exchange with your customers via influential data.
• Data capture: Capture information to provide the most relevant experience and continue growing.
• Engagement: Form an attachment with customers – even between purchases – through targeted campaigns.
• Driving spend: Seize on opportunities to drive transactions through personalised interactions.
Traditional loyalty gets shaken up
Mobile disruption is shaking up traditional loyalty programmes and mobile phones are quickly replacing all other forms of loyalty communications. Vouchers are getting digitised and added to mobile wallets via apps based on behavioral patterns and purchase history.
In fact, indications show that mobile technology can help to boost store visits and orders among key customers, to fuel sales growth, and longer-term loyalty.
A recent Google micro-moments study found that the average person checks their phone close to 150 times a day. Data, data, data…businesses are swimming among a sea of information and being rewarded because they have access to mobile data. Mobile app data affords a unique ability to combine behavioral, demographic, intent, context, and location data to serve up the right message at the right time on the right device.
How you stand to benefit
CRM and loyalty marketing can be used together to create deeper connections with your customers. Instead of viewing them as an either/or, or viewing them as separate strategies, view them as partners working toward the same goal: building authentic relationships. The two partners excel in different attributes. CRM creates breadth – cast a wide net to reach a large quantity of customers. Loyalty creates depth – dive deeper into relationships with customers who are committed to creating deeper connections with you. Together, the two allow you to build connections that expand wide (reaches a lot of people) and goes deep (builds deeper connections with valuable customers).
Personalise your buying experience
Yoyo Pro allows your business to run its very own CRM loyalty programme to attract, engage, retain, and grow your customer base, while providing seamless and rewarding buying experiences.
With data, analytics, and a direct line of communication at your fingertips, this is just the beginning.
