After getting a BA in Advertising, an MBA, and 9+ years working in advertising, it wasn’t until I joined FiveStars that I understood the most important part about advertising….the insurance policy on it!
Businesses invest a large amount of money on that traditional advertising- newspapers, magazines, direct mail, online, flyers, etc. All of this just to get the name out and hopefully, bring new people in the door. There is an acquisition cost for each new customer and it is an integral part of any business, and the successful ones see this as an investment- but it can’t end there.
One of the best quotes I’ve read recently is:
“If buying customers is your biggest investment, then continually buying new customers, or buying market share, is the most expensive way to do business,” said Bradley Sugars, in his book “The Business Coach.”
When investing those large sums of money into your business, wouldn’t it make sense to have an insurance policy in place to make sure there are long-term results and those dollars are spent appropriately?
Sugars continues by saying, “Chasing wallet share is as simple as remembering you’ve got a loyal customer base, so what else can you sell them? You see, they already know you, they already like you, they’ve already bought from you-and they already know what you can and can’t do for them. All you need to do is find a profitable way to ask them to buy from you again and again.”
That’s exactly what customer loyalty does! You’ve worked hard and invested time and money getting them in the door, providing excellent customer service and products, and now it is simply having an insurance policy to keep them coming back. It is 6x’s less expensive to keep a customer than to get a new one!
Loyalty shouldn’t replace all of your advertising, but it will have a bigger return on investment which will positively impact your bottom line. It will help you get more bang for your buck by motivating your new customers to come in the door more often, making them feel special for patronizing your business, while providing you a platform to reach out to them. Loyalty programs excite customers and motivates them to buy from you again and again, without you having to ask.
FiveStars Loyalty Consultants can show you how to utilize your reward structure to increase repeat business enabling your loyalty insurance to work for you.
Michelle is our Southern California Loyalty Consultant. Formerly from Groupon, Michelle really knows a thing or two about small businesses! Here at FiveStars we call her Turbo. Her respect for business owners’ busy schedules has led her to be the fastest on our team at getting a great loyalty program up and running for your business. Get in touch with her at firstname.lastname@example.org