When winter's chill seems its iciest, loving hearts warm for that annual celebration of love—Valentine's Day. Star-crossed lovers might ignite sparks, but they're not the only people who can do a bit of wooing this holiday. Why not take a chance on creating a lifetime connection with customers?
Like any great relationship, it can take time to develop and grow, but first impressions matter. And what better way to make a great first impression than through customer incentives? Read on to discover how your business can leverage customer incentives that don't just drive one-time purchases but create loyal brand enthusiasts.
Why Customer Incentives Matter
There's a reason to offer customer incentives regardless of your industry or product offerings. If your industry is crowded, incentives can differentiate you from competitors. If consumers need to test your product before committing, perks help there, too. You can even use incentives to bring customers back or keep them coming back.
Not all incentives are created equal, though, and it's better to approach them as you would when getting to know a person. Incentives like discounts and freebies are great for getting someone to buy your product once. But you can't build a relationship on discounts alone. Recent data shows that 66% of customers switched brands when they found a better deal.
If you want to nurture your customer relationships, there's another tier of incentives to help. It starts with creating an open line of communication through emails, offering more than just promotions. You can also incentivize loyalty through a reward system that shows you value repeat buyers.
You can make the relationship official through referral rewards. Getting referred to friends and family shows how serious the relationship is, and there should be rewards for that. So, are you ready to get this relationship started?
Initial Introductions
At first, the customer may know little about your company and its offerings. They may have stumbled upon you amid a frantic search, driven past your storefront, or seen you beside your competition.
Whatever their interest, they remain hesitant. Incentives that reduce their overall cost, whether it's the price,time, or risk, can encourage their first purchase.
Discounts and Coupons
Discounts and coupons are arguably the oldest and most simple incentives around, but for good reason. Roughly 3 in 10 shoppers will abandon their cart because they found an item for less elsewhere. Offering a discount can get ahead of the problem and encourage them to commit right then and there.
Coupons can function more proactively than a discount advertised on your website or in store. The coupon can be discovered anywhere, even in their email inbox, to encourage a customer to look at your products and consider making a purchase.
There are two main drawbacks with discounts and coupons, though. First, they can cut into your margins more than you'd like. Second, there's always a chance a competitor will offer a deeper discount.
Freebies
Who doesn't like getting something for free? Offering something free to customers is a great way to encourage customers to try your business out. A free gift can encourage an initial purchase while doubling as a way of thanking your customer.
Offering a free sample of a product can go even further than a free gift by lowering barriers to purchase. For some products or services, the cost makes consumers weary of handing over their money without a guarantee. A free sample clears that hurdle and builds trust.
Another free incentive familiar to anyone with an internet connection is a free trial. Especially in services, free trials provide an avenue to showcase why your offering is "worth it." But how you structure your free trial matters. One study showed people are five times more likely to purchase when they try the premium version first.
Similarly, length has an impact on customers too. You could be generous and offer customers an entire month to sample your service, but that makes it easy for customers to forget all about you. A 7-day trial has a nearly 7% higher conversion rate.
Getting Cozier
As you grow more familiar with your customers, you can begin to grow customer lifetime value though more meaningful incentives. Starting with consistent communication through email and following through with a loyalty program are great ways to create a more authentic relationship between you and your customers.
Email Exchanges
There may be no better way to communicate with customers than through emails. At its best, email marketing doesn't even feel like marketing. Instead, it's a conversation between you and your customers about your products or services.
It can start with a simple thank you message after a purchase. You can include a discount code to encourage repeat purchasing, but sometimes just saying thank you is enough. From there, try to anticipate common pain points and make sure they're enjoying the product.
When it comes to email marketing, it doesn't need to exert massive amounts of energy, just some creativity. Recycling blog posts as emails, sharing instructional videos, or sending product reviews from other customers are great low-effort ways to keep the conversation rolling. Once there's an authentic conversation, pepper in exclusive discounts or early access to products to show how much you value their reading.
Sharing posts and content from other customers is also a great way to show how much you value their support and the community around your brand. A small time investment can reap a 36:1 return on investment for your next email marketing campaign.
Loyalty Programs
Another benefit of a great email marketing campaign is that you can use it to launch your loyalty program. There are a few variations, but all loyalty programs all operate on the basis that the more purchases a customer makes, the greater rewards they receive.
Wondering where to start when it comes to rewards? Start simple. Almost 50% of respondents in a recent survey said tha free shipping would make them most likely to join a loyalty program. Don't ship? Don't worry, the number two reason is greater discounts.
If you want to get more advanced, you can try gamifying the loyalty program experience. Rather than a straightforward more purchases, more rewards system, you can encourage customers to enter "challenges."
These might offer greater rewards if customers buy a certain amount of a product or spend a minimum amount in a set time period. These can be a great way to lift sales or move inventory while encouraging a fun shopping experience.
Genuine Connection
Loyalty and direct communication don't need to be the end of the relationship. As valuable as a single, loyal customer is, they have the ability to triple their value with a few clicks.
Referral Rewards
Purchases are a great way to demonstrate brand loyalty, but referrals are crucial to every business. 89% of respondents in a recent survey cited friends and family as one of their most trusted sources for brand recommendations. So once you've established a strong, steady relationship with a customer, encourage them to share the love and refer you to their network.
Like a loyalty program, referral rewards operate on the idea that if a customer makes a referral, they deserve a reward. These might include discounts, exclusive items, free gifs, or entry into contests. The referrals they generate are as good as gold across almost every industry. Referred customers spend more and stick around longer, two hallmarks of increased lifetime customer value.
Go Steady With CMG
Customer incentives go far beyond discounts and coupon codes. You can use those basic techniques to get customers in the door, then deploy more meaningful incentives to foster a deeper relationship. Using incentives throughout a customer's lifetime won't just encourage their loyalty, it'll begin to develop additional customers through referral incentives. But how to get the word out about these incentives?
Start these new relationships with CMG's help. For decades, we've run major broadcast channels on radio and television so we can blast your latest discounts far and wide. But we don't stop there. We can craft a compelling email marketing campaign around your incentives to create customer relationships that last a lifetime.
Contact us today to get started.
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When winter's chill seems its iciest, loving hearts warm for that annual celebration of love—Valentine's Day. Star-crossed lovers might ignite sparks, but they're not the only people who can do a bit of wooing this holiday. Why not take a chance on creating a lifetime connection with customers?
Like any great relationship, it can take time to develop and grow, but first impressions matter. And what better way to make a great first impression than through customer incentives? Read our new blog to discover how your business can leverage customer incentives that don't just drive one-time purchases but create loyal brand enthusiasts.
