If you’re looking to increase revenue for your business, you may have thought about raising your prices. But customers are price-savvy, by price checking competitors and researching online, customers are more informed than ever before.
Instead of hiking your prices and risk losing your customers, there are three alternative ways you can increase revenue (1) increase customer retention (2) increase frequency of purchases per customer and (3) increase average transaction size.
That is a hefty objective but you can check off these three components through one simple customer engagement strategy, a loyalty program. And loyalty programs can drive serious revenue for your business. Just take a look at what Forbes found:
“Loyalty programs are proven to increase customer lifetime value by up to 30% or more by increasing visit frequency, increasing spend per visit, and winning back lost customers.” - Forbes
Customer loyalty is the gift that keeps on giving. But establishing loyalty in a competitive marketplace can be difficult, and digitally empowered consumers are not shy to take their business elsewhere. Research company Access Development reported that 79% of customers would take their business to a competitor within a week of experiencing poor customer service, and the estimated cost of customers switching their choice of businesses due to poor service is $1.6 trillion.
What could be hurting your customer retention numbers? Customers are showered with choice and not just the number of market players in the space but also the different types of pricing, wide variety of discounts and promotions, and range of customer service – all designed to influence customer choice. This sea of choice can be detrimental to customer retention for any business, big or small.
To stand out in the crowd, position your business as the best choice. Make your brand the most compelling and your offerings the most competitive by deploying a loyalty program. This provides tangible incentives for customers to buy while also instilling a greater sense of brand awareness within your customer base.
The Starbucks app is a great example of an incredibly successful digital loyalty program. The app allows for users to earn stars every time they order, collect these stars and redeem them in real-time, encouraging customers to repeatedly return And with over 20 million global members, Starbucks continues to increase its revenue and invest in their customers.
Increase your revenue by 30% with a customized loyalty program. With Revel Systems you can simplify customer participation and design a loyalty program that makes your business more money. Learn more about Revel System’s loyalty program and see how a loyalty program can drive business.
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