How a new trend will facilitate customer retention
Have you been considering a loyalty scheme/membership program for your customers but asked "what’s in it for you"?
We all know that understanding customers is one of the secrets of successful selling – and increasing your profits. But if you don’t thank your customers for their business by rewarding them, you could be missing out on a serious opportunity to increase their spending.
According to a study by RJMetrics, loyal customers purchase from you more frequently and are much more profitable than your average customer. What’s more they are important sources of information; the more you know about them, the easier it is to increase the amount they buy and incentivise them to help you find new customers. But, how do you convert all of your customers into loyal customers?
Utilising customer loyalty schemes and membership programs are an effective way to improve customer-retention. Yet many firms are missing a trick when it comes to building customer loyalty meaning they cannot shine the spotlight on customer behaviour, identify needs effectively or up-sell to increase profitability.
Research by McKinsey highlights that the average household has 23 loyalty memberships, but overall people are collecting fewer loyalty rewards than ever. In fact, figures from Worldpay show a drop of eight million people in the UK alone compared with 2014. This decline in active participation is partly due to the challenges customers face such as struggling to keep track of their points and rewards, receiving offers that are irrelevant to them, all combined with the fact that they have to remember to physically carry all of their loyalty cards.
Bink was created to solve this problem. For shoppers it’s simple – just scan in your debit and credit cards, as well as your existing loyalty cards and Bink will link them together. This means customers no longer need to carry any of their loyalty cards as their transactions are recorded through the registered payment card and fed back to the retailer enabling the points and offers to be awarded.
Retailers will also be able to identify new customers for their membership programs by Bink spotting a customer’s transaction where no loyalty card is loaded within the app - it will then ask the consumer if they want to enroll onto the loyalty scheme.
Once a consumer is registered onto a loyalty program, the data provides rich information to help the retailer to create personalised offers and rewards, which in turn will improve the consumer experience and drive sales growth.
In a competitive marketplace, where customers find it easy to shop around for the best price, if you want to build a loyal clientele, simply keeping the customer satisfied isn't always enough - you need to utilise the latest innovation to get to know your customers inside out and make their life easier, whilst being more engaged.