In today’s world wide economy, SMEs that ignore customer retention are losing ground. Good pricing and top-notch products will only get you so far. Customers now have abundant information and resources available, an overload of options, and higher levels of awareness about what they expect from a brand.
The key to generating more dough for your business is through customer retention.
At its core, customer retention is a give-and-take approach that transforms one-time buyers into loyal regulars who choose your business repeatedly, even with other options just down the street.
Loyal customers not only contribute to a business’s growth over the years, but they also spend 67% more than new customers. They’re often willing to pay more and less concern about price changes, trusting that their loyalty is valued and often rewarded by the brand.
But, how do you begin retaining customers?
It’s simple: with effective retention marketing strategies that boost loyalty.
And to get started, you’ll need just three things:
Other than that, it’s just a matter of rolling up your sleeves and starting to create campaigns and rewards. So, without further ado, here’s a quick overview of five LoyLap merchants excelling with their customer retention strategies, along with a brief explanation of why this approach could work for your business too.
Approach 1: Exclusive Discounts for Specific Employees, Members or Students.
Starting strong, Ready Fit Go is a California-based pre-made meal company that definitely knows its way around creative retention marketing.
By offering exclusive discounts to the athletes, friends, and family of the Roosevelt Girls’ Football team, they attract new customers who are likely to purchase meals repeatedly, especially since they’ll often be near one of RFG’s locations during football games.
Eager to start crafting campaigns that encourage repeat purchases? Click here to learn more about Campaigns
Why it works:
This strategy is highly effective for both attracting new customers and retaining them over time. Customers with ongoing discounts have greater incentive to keep returning to the same business instead of trying others, fostering long-term loyalty and repeat business.
Approach 2: Bundles to Increase Cash Flow & Customer Retention.
Another way RFG skillfully encourages customers to keep spending is by offering bundled promotions on their meal packages.
Eager to start creating bundles that drive cash flow to your business? Click here to learn more about Bundles
Why it works:
Bundle promotions typically come with significant discounts, allowing customers to pay less per item than they would with single purchases. This added value gives customers more for their money, providing a strong incentive to stay loyal to the brand. In return, the business benefits from upfront payments, receiving an immediate influx of cash that can be later allocated where it’s most needed.
Approach: Free Soup with the Purchase of a Sandwich
At first glance, this strategy may not seem especially creative. However, the thought process behind it is surprisingly strategic. With this approach, Eat Smart not only rewards loyal customers but also introduces them to menu items they might not have tried before.
Eager to start crafting campaigns that encourage repeat purchases? Click here to learn more about Campaigns
Why it works:
Offering a free menu item might lead to two key results. First, customers feel they are getting more value for their money, whether they initially wanted the extra item or not. Second, if the customer enjoys the new item, they are more likely to pay for it in the future, either as part of a bundle, as a separate purchase, or as an addition to their usual order. This simple idea effectively builds customer loyalty while introducing new items, making it a clever customer retention strategy.
Approach: 5% Credit Back on All Purchases
Retention strategies apply across any industry, and Toby Toysmaster is a great example. This Malta-based business offers customers a 5% credit back with each purchase. This entices customers to signup to their loyalty program, and the business protects itself by requiring customers to accumulate €20 in cashback before they can redeem it.
Eager to start crafting campaigns that encourage repeat purchases? Click here to learn more about Campaigns
Why it works:
The €20 requirement encourages customers to make multiple purchases before they can redeem their credit, securing Toby Toysmaster’s future revenue. Additionally, rewarding customers with final discounts makes them feel appreciated, which increases their likelihood of returning. Once they redeem their credit, they’re likely to start the process again, motivated to continue earning credit toward the next discount.
Approach: Wellness Bundles to Increase Cash Flow & Cross-Selling Opportunities
Zen Healthcare also utilises bundles as a retention strategy. By offering a Wellness Bundle that includes several treatments, they give customers the chance to experience multiple services at a reduced rate compared to purchasing each treatment separately.
Eager to start creating bundles that drive cash flow to your business? Click here to learn more about Bundles
Why it works:
Bundles are often available for a limited time, creating a sense of urgency that encourages customers to make purchases sooner. By offering a significant discount, customers view the bundle as an economical choice, often opting to pay upfront, even if they hadn’t originally planned to spend as much or try these services. This strategy not only boosts cash flow and enhances customer retention for Zen Healthcare but also serves as a cross-selling tool, introducing customers to new treatments. Ideally, customers will return in the future to pay full price for the services they enjoyed.
Approach: Implementing a Loyalty Stamp System for Consistent Customer Engagement
Last but not least, we have ‘The Ice Box’ implementing LoyLap’s well-known stamp system. To some, this approach may not seem groundbreaking. However, with so many customers spending their free time dining out and hopping from one ice cream spot to another, finding a way to keep them coming back to you week after week can make all the difference.
Eager to start creating rewards that keep your customers coming back? Click here to learn more about Loyalty
Why this work:
This loyalty stamp system is effective for customer retention because it encourages repeat visits by offering a tangible reward after a set number of purchases. Psychologically, each stamp brings the customer closer to a reward, which not only makes each purchase more satisfying but also builds a sense of progress toward a goal.
Moreover, stamp-based loyalty systems help foster a personal connection with customers. When customers see that their loyalty is recognized and rewarded, it strengthens their relationship with the brand and can lead to positive word-of-mouth, as they are more likely to recommend the shop to friends. These repeated interactions build a habit of choosing that particular shop, which can be invaluable in competitive sectors like food and beverage.
In an increasingly competitive global economy, prioritizing customer retention is essential for SMEs aiming for sustainable growth and a loyal customer base. By implementing thoughtful loyalty strategies - such as exclusive discounts, bundles, credit back, and stamp rewards -businesses like yours can create lasting relationships that drive repeat business and long-term revenue. Remember, customers who feel valued and appreciated are not only more likely to return but also to advocate for your brand and recommend it to friends and family.
Now is the time to think outside the box and start creating campaigns and rewards that will keep your customers coming back time and time again.
Got a question about creating campaigns from your LoyLap Dashboard? Reach out to our support team at support@loylap.com, and we'll gladly help you create a loyalty program that will drive more revenue for your business.