When you start up a business your main concern is to get customers through your door, but as your business picks up pace you begin to think of ways to retain your customers in order to stabilize your revenue. If you’ve ever experienced a stream of customers on a good day, you’ll understand the desire to maintain that frequency and give your business a lasting, competitive edge.
Then, a week later, you find out your business has slowed down, with only a few customers coming by. This is where some business owners start to sweat a bit around the collar. Luckily, there are strategies that are designed to overcome such drawbacks – a new breed of digital cards, which you can create with ID printers from Avon Security Products here in Canada, has increased the potential for successful loyalty programs, and revitalized the sales revenues of a number of Canadian businesses.
Implement A Loyalty Card Program In Canada
Loyalty cards boost sales by coming up with discount schemes that motivate customers to return. Loyalty is a powerful tool that functions as an incentive for potential buyers, but it typically comes at a cost; customer loyalty programs are effective in saving you the expense of acquiring new customers by attracting existing customers to pay frequent visits. According to information in Forbes magazine, it costs 5 times more to acquire a new customer than it does to keep an existing one. Therefore, finding ways to retain customers is much more cost effective than regularly marketing your business to new customers.
Your loyalty program can offer giveaways occasionally, provide good deals and discounts on your products, and/or offer special discounts for recommending other customers to your store. These schemes are highly effective in bringing back customers on a regular basis. For service-based businesses, such as security companies, the quality of their service can determine the rate of their customer retention. But in the face of growing competition, companies must offer incentives to clients for them to continue availing services from them. Run promotions and offer free upgrades to better plans, and create special offers for existing customers to acknowledge your long-term relationship with them.
Customer Loyalty Cards Boosts Profits By 20% In Canada
The Fast Company reports that a majority of consumers prefer small treats (discounts) on their purchases rather than one large discount offer once in a while. Gains that customers can benefit from over time provide customers with rewarding experiences, and loyalty programs that offer points, credits or coupons allow customers to accumulate their total savings over time, giving them a sense of accomplishment and instilling in them a positive association with the company.
It is recorded that a loyalty program can raise a brand’s market share up to 20%. This is a major reason as to why you should never underestimate the value of customer retention. According to information cited by Bain and Co., a company’s profitability can go up 75% just by a 5% increase in retaining costumers. There are numerous study reports that indicate an increase in profitability to varying degrees just by holding on to existing customers. If you want an easy and effective way to boost profits, get on board with customer loyalty cards.