Though the concept of acquiring new customers has always been at the core of building a business, the ability to keep customers loyal to your brand is just as important. As the revolving door of customers spin with new ones coming and going, it’s critical to understand the value loyal customers provide to your business. So why exactly is customer retention so important and what are methods you can apply to keep your loyal customers satisfied and offer the best convenience store loyalty program possible?
We understand the price of customer acquisition has always been high, but the digital world of 2022 has pushed the envelope. According to Marketing Metrics, customer acquisition costs have skyrocketed by almost 50% in just the last five years alone! Though those numbers are jarring, customer acquisition is vital to sustaining a business. On the flipside, nurturing relationships with existing customers who are already familiar with your brand and are more open to repeat business is arguably just as important. For example, the probability of selling to an existing customer is up to 14 times higher than selling to a new customer. These figures don’t mean they’re just choosing your store over others, but that they’ve formed an emotional bond with your brand and have the ability to influence those close to them to consider your convenience store rewards program.
So now that we understand the importance of customer retention, here are some strategies that are effective in forging loyalty among your customers.
1. Understand Your Customers
The first thing you should aim for in building a customer retention strategy is understanding your customers. Knowing who they are and what their preferences are is vital information and can be utilized for years to come. You can gain a better understanding through data collected from their most frequent purchases through Simpliconnect’s convenience store loyalty program. Using this base level of understanding can help you strategically craft personalized messages across every campaign and touchpoint. And if you get the personalization right, you can see a 10-30% revenue lift!
2. Cross-Channel Communications Outreach
When it comes to customer retention, engagement comes hand in hand. And as we discussed in our previous blog, utilizing all forms of communication is an essential blueprint for better engagement. Successful implementation of an omnichannel strategy starts with mapping out your customer's journey and then seamlessly enrolling a strategy to connect with them across all channels (email, text, push notifications). This way, you’re connecting with them on their terms with their preferred method of communication. We’ve seen our customers employ various strategies through Simpliconnect’s communications platform to find a balance that works for them and their customers. And if you’re not sold on cross-channel communications for your convenience store loyalty program, then let the stats speak for themselves. It’s proven that omnichannel strategies see 287% higher purchase rates! On top of that, multi-channel engagement keeps you in touch with your customers in various locations across platforms keeping you and your brand one simple click away.
3. Build an Emotional Connection
It’s no surprise that customers who have a positive disposition to a brand are valuable commodities. How valuable you may ask? PR Newswire reports that happy customers have a 306% higher lifetime value! Obviously, that is a huge figure, but how can we gain that level of trust with customers on a more personal level? There are a few things you can try. The first strategy is rewarding your members with special privileges not permitted to regular customers with surprising and enjoyable promotions. This separation of member and regular customer elevates their intrinsic value and makes them feel special. A good example our clients use is a Birthday Offer which gets sent out to members on their special day. Another method is as basic as it gets: provide exemplary customer service in your store. If you think about it, even when you’re having a bad day, kindness from another individual can change your perspective. Lastly, use the cross-channel communications and data you’ve collected to anticipate your customers’ needs and show your level of understanding towards them with personalized offers. It’s never a bad idea to show your customers you care about them as an individual.
When it comes down to it, most businesses understand the value of customer retention, but implementing strategies to keep retention high is another thing altogether. But if you carry out these methods of firsthand understanding your customers, then connecting via cross-channel communications all in order to build an emotional connection, not only do you have a good shot at keeping customers but adding a few along the way. If you’re interested in implementing these proven methods and building the best convenience store rewards program, reach out to us at Simpliconnect! Our customer engagement program utilizes a custom mobile app that gives your brand an identity and provides all the tools for you to make data-driven decisions to create stronger retention among your customers. Schedule a free consultation to learn more today!