All businesses love to see previous customers return to purchase their products or services again and again. Repeat customers are beneficial to the success of your company because they . . .
*Cost less to attract than new consumers
*Are easier to attract than new consumers
*Will recommend your company to others
*Require less service
An excellent way to keep previous customers repeat customers is through a frequency-marketing program. Frequency marketing is any form of marketing that rewards customers for their purchases and encourages them to return. Frequent flyer miles illustrate this concept in the clearest of terms. Many airline companies offer frequent flyer miles, which motivate the consumer to continue flying with that airline in order to obtain cheaper services.
Any company can utilize frequency marketing for its customers. Some magazines or newspapers offer deals for resubscribing to their publication in order to keep the consumer a frequent buyer and reader. The make up store Sephora has Beauty Insider Rewards, which also benefit returning customers. The program keeps track of purchases, and at the $100 spending mark, the customer receives a free gift. The rewards restart after the $100 mark, and the free gifts keep coming whenever that mark is reached.
Creating a solid relationship with customers is very important and should be done at the earliest stage possible during sales. Customer maintenance insures their happiness and repetitive sales.
1 Comment
July 21, 2008 at 5:52 am
While I can appreciate the frequency-marketing theory of customer retention behind your post, a reliance sole on frequency-marketing today only provides a near-term cheap marketing approach at the expense of a long-term ongoing revenue stream if used alone without other customer-focused tools. The airlines themselves a seeing this as mileage no longer matters, only a price war. That said, we reviewed your blog on ours to share your comments and points with our own readers.