What makes your business run? What’s the key to pulling ahead of your competition? Is it great marketing? Lots of new customer acquisition? A stellar product? While all of those things are indeed essential to a company’s success, the thing that really seals the deal is customer loyalty.
Case in point? Even a 5% increase in customer retention can boost profits by at least 25%. Additionally, a whopping 60% of loyal customers buy more frequently from their companies of choice.
If you want to grow your business, investing in loyalty marketing is one of the best things you can do. In addition to nurturing your existing connections, loyalty marketing is an excellent way to improve your customer service and become a more competitive company, across the board. Here at InThink, our team of experienced loyalty marketing experts will help you grow your loyalty program and keep your supporting customers happy.
First Things First – What is Loyalty Marketing?
Loyalty marketing, like “content marketing,” is an umbrella term that refers to any activity a company takes to encourage customers to do repeat business. In most cases, these marketing efforts include purchase incentivization and reactivation campaigns, both of which are designed to re-engage existing customers.
3 Reasons to Invest in Loyalty Marketing This Year
While every company needs to attract new customers, too few brands focus on nurturing their relationships with their existing customers. As it turns out, though, doing so is one of the single best things you can do for your company. Here’s why:
1. Loyalty Marketing is Affordable
According to a recent Forrester Research, customer acquisition costs about 5x as much as customer retention. This is because of the effort associated with earning a new client. You have to make them aware of your brand, convince them your offerings are reputable and nurture them through your funnel.
Existing customers, meanwhile, are already qualified – they know your company, trust your people, and believe in your product. As such, marketing to them takes much less time, effort, and expense.
2. Loyalty Marketing is Productive
Did you know the probability of selling to an existing customer is about 60-70%? Compared to the 5-20% probability of selling to a new customer, these odds look pretty good. Additionally, 80% of the standard company’s revenue comes from about 20% of its clients. As you can see, marketing to these existing customers is an easy and effective way to boost your sales.
3. Loyalty Marketing Will Support Other Marketing Efforts
There are lots of ways to go about loyalty marketing, but one of the best is to solicit customer feedback. Not only does doing this support your loyalty marketing efforts, but it provides a wealth of content you can use in other marketing efforts – like social media and email, for example.
The ROI of Loyalty Marketing
As you can see in the statistics above, loyalty marketing can be incredibly productive. While their ROI can be a bit difficult to measure, most proponents agree that they provide a wide range of tangible and intangible returns.
For example, about 96% of Millennials take advantage of loyalty programs, especially when those programs are mobile. Additionally, 52% of Americans will join a loyalty program with a “preferred company.” With these things in mind, you can rest assured that investing in loyalty marketing will offer a solid return and that doing so is a great way to grow your business.
InThink Customer Case Studies
We believe deeply in the power of loyalty marketing, but we like to meet our customers speak for themselves. Check out the real results InThink customers have enjoyed after partnering with us:
Worcester State University
“InThink helped us promote key attributes of Worcester State through use of compelling story telling. They were a hands-on partner in executing a series of videos, from planning through to post-production. Their staff were flexible, professional, and knowledgable about not only video production, but about marketing in higher education.”
USTA New England
“We hired InThink to do an inspiring video to get people back into the sport of tennis. We used this video to kick-off our largest conference of the year as well as in advertisements for our programs. The video drove social engagement and was an effective way for us to celebrate the sport with our consumers.”
“InThink provided us with a logical, achievable, measureable and sustainable plan to “showcase” our company. They are laser focused on implementing the correct steps to maximize the benefit of each marketing initiative.
Kham and his team have taken the time to understand our business and our vision for the future. They have an complete understanding of our preferred customer.”
Learning First Foundation
“The InThink team has helped our organization transform both internally and externally. Before working with them, we did not have a clearly expressed vision or brand and nor did we have the collateral materials necessary for fundraising as a nonprofit. Thanks to them, we now have not only visually appealing marketing materials (website, video content, logo, print material, etc), but these tools help us express our cause so that we are reaching our crucial fundraising goals.”
Attorney and founder of Sabra and Aspden PA
“As a busy attorney it’s difficult to get involved with my marketing and sales. The InThink team takes care of it all, and I have peace of mind knowing that they have my best interests. They do a great job keeping it simple, but yet execute complex strategies.”
Owner of Ace Wood Flooring
“I’ve been working with Kham and his team for several years, and they have been so involved with our business from sales to marketing to workflow. He’s really a part of our company and we couldn’t be happier with InThink.”