A Social Media Marketing Agency in the market is a place where buyers and sellers unite. Sellers are there to sell the product or service while buyers buy. The Oxford dictionary defines a marketplace as "competing with other companies to buy or sell goods, services, etc." The keyword in the definition is 'compete' or competition. It is common to see many sellers selling the same commodity in a marketplace. The same entity with different branding. It's the marketing that differentiates other products in the market. The product that is the best-marketed will catch many eyeballs. The more the "reach," the more is the "sales." When the customer likes the product, they try that again and again. This customer is now a repeat customer to the seller or the business because the customer is repeatedly buying products from the same industry.
In a business, the customer is the king. If the product being sold is of good quality, naturally, it will drive in many customers. But there has to be some differentiability that makes the product stand out among its competitors. The pricing has to be aggressive if the market is competitive. Some customers would like the product, while some would fall in love with it in this process. But this number of customers falling in love with the product has to keep climbing. This would indicate the product has a superpower. When customers get to know the superpower, they start buying more of it. Eventually, they become regular, repeat, and loyal customers.
Customer Loyalty and Its Importance
Statistically speaking, existing customers are 50% more likely to try something new and spend 30% more time viewing different products in the business. It also costs five times more to acquire new customers. This shows the importance of having a customer loyalty program in the industry. In layman's language, customer loyalty is 'the willingness of a customer to repeatedly return to a seller to buy certain products. This has probably happened due to positive experiences with the Social Media Marketing Agency'. Loyal customers provide more input into your business than new ones. Constant good feedback from customers is an excellent sign for the company. Let us get to know some points on the importance of customer loyalty:
Making the market yours: Companies with loyal customers get more revenue than their competition. It is because repeat customers will surely return to their favorite company for more even though the other company has launched a similar product. These customers will spend more time and money on the business they love.
Social Media Marketing Agency using word-of-mouth strategy: Loyal customers let other potential customers know about the product through word-of-mouth. This is an organic way of marketing a product. Great product will surely spread the 'word-of-mouth marketing' like a wildfire. This results in more reach and more people at the doorsteps of the store/company.
Bring value, build an authority: Your customers need the product's weight, or they will not be converted into sales. Bring the value that consumers need. This would automatically increase the chances of loyal customers. The more the number of loyal customers, the more is the authority of your business. The more control a company has, the easier it is to do business in a specific marketplace.
Customer Loyalty Programs
Sellers or companies create loyalty programs to encourage loyalty and long-term relationships with the most frequent customers. They offer freebies, rewards, coupons, and extra discounts on a new purchase. They also provide early access to loyal customers and get critical feedback before the public launch. Customer loyalty programs make repeat customers feel their importance in the business.
Types of Customer Loyalty Programs
Three types of customer loyalty programs are described herein:
Point-based loyalty program: This is a great way to show affection for repeat customers. On every purchase after the first one, customers are given points. These points can be redeemed for coupons and cashback in the store. This is useful for both online and offline stores. Major offline stores have a card system for calculating points. Apps can also be used to calculate points and generate rewards accordingly.
Tiers of loyalty: A subscription model of commitment may have a few levels say 3 tiered-system. With each tier, the benefits for the customers increase. Like the amount of discount may increase, or cashback coupons may generate. A tier-ed Social Media Marketing Agency loyalty program is for the long-term value of the customers.
Game-based loyalty program: Games were added to e-commerce platforms as recreational activities. But soon, this activity was converted into a loyalty program. When a person plays mobile games they earn points, which are further converted to rewards. This concept is pretty easy to understand.
Ways Of Building Customer Loyalty
Having already known what power loyal or repeat customers hold in businesses, we can now talk about how to build customer loyalty steadily:
Generosity goes a long way: Indeed, it goes a long way. Try giving at least the same amount of value back to the customer when she joins a loyalty program. A loyalty program can be a subscription model. In that model, a business can give them an extra discount for anything they buy from the store. There has to be a strategy involved so that profits can be made. But it should be done generously. In a manner that both the seller and the buyer are happy.
Check your analytics: Analytics help you gain knowledge about those customers who have already bought twice from your stores. Social Media Marketing Agency targets them separately through e-mail or SMS marketing. Give them extra perks on their next order. If they are not subscribed to the loyalty program, let them know. Keep those customers coming for more, and ultimately the objective will seem achievable. This is primarily a form of online marketing and may not be helpful in the offline scenario.
Communication is the key: It can be communicating through digital media for an online business or in-person for a physical shop. Communication skills play a vital role in customer acquisition. You might be surprised to know that it also plays a significant role even in “customer retention.” Nobody regards a foul-mouthed person as a good human being. Sellers need to be courteous and treat customers like guests. Market the product with as much information as possible. Communicate the product with the masses. Include the keywords and key points in an ad campaign for the best results. And if one markets the product physically, communication through a great pitch is an absolute necessity.
The business has to evolve: No customer would like a stagnant industry. It has to evolve. It needs to bring in new products and new services. It has to continuously reach out to its customers, especially the loyal ones, for feedback. The feedback should include how the products can be improved or what problems they face. Any business that wants to scale can never stick to one product or service. The company won't be able to sustain itself for long if it does so. Involvement leads to the evolution of a business.
A community of like-minded people: This is again for an online store. Creating a community for the customers is a great way to show courteousness towards them. This encourages customer-customer engagement. Try to use a customer forum. It will be beneficial for the seller as well. It is because the seller will be able to know about the trends and the problems of the product. Customer loyalty programs are of great use here.
Customer loyalty isn't the only thing to put one's energy into. There are many other factors in a business to look into. But customer loyalty is one of the most important things to take care of. Ultimately if there are no customers, where will the sale come from? Communication and ethics are critical to a business. Customers look for a transparent business model. They look for a company with discipline growing through the years. Excellent customer loyalty programs don't seal the success of a Social Media Marketing Agency and business, but it is an essential stop on the way to success. Keep converting customers and making them repeat ones!
Freelance Content Writer, eveIT
Supurna Sinha has been a content writer for three years based out of Kolkata. Her articles focus on balancing informative with SEO needs–but never at the expense of providing an entertaining read.
Excellent customer loyalty programs don't seal the success of a Social Media Marketing Agency and business, but it is an essential stop on the way to success. Keep converting customers and making them repeat ones!