Customer Retention or Customer Acquisition
There are many reasons why businesses need to acquire new customers all the time. In terms of quantity, acquiring new clients is almost synonymous to growing the customer base of your organization. However, there are also as many, if not more, reasons why retaining customers is even more important.
First off, there is virtually no need for you to spend marketing dollars in order to get the attention of your existing customers — you already have their attention, after all. Moreover, surveys have shown that existing and loyal customers purchase as much as 3 times more than the average new customer. And with these existing clients providing you the added advantage of word-of-mouth marketing and referrals, there is every reason for your business to focus on customer retention and not just customer acquisition.
The need to keep your customers and keep them buying
Due to the recognition that keeping existing customers can be more advantageous for the long-term compared to acquiring new ones, what you need is a strategic marketing campaign that significantly improves customer loyalty. Simply put, you need to be able to keep your customers and to have them buying your product or using your service time and again.
As a business owner, not only do you need to increase customer usage; you also have to invest in sales efforts that prevent customer defections. An existing customer is already an asset, and the last thing you would want is to have your loyal client go somewhere else because the competition is offering something more enticing or substantial.
Using gift card promotions to improve customer retention
While there are many ways for you to retain your customers, such as email marketing and even traditional mail marketing, these efforts are bound to fail without a strong call to action strategy. This is where gift card promotions and other incentive programs can help. When customers feel that they are getting an extra benefit from a transaction, they are more compelled to act on the message and continue doing business with you. A rebate promotion, for instance, may improve trust between you and your clients, considering that you are offering refund for their overpayment or continued patronage of your product or service. Customer promotions such as these can go a long way in optimizing the profits that you can gain from your existing customers.
Giving your customers the extra attention
When done right, the extra investment that you put into customer retention through promotional incentives and rewards will pay off well in the end. If you are a startup business, you don’t even need to spend a fortune for these promotions. There are promotions companies who can take on the job for you and even offer you less expensive customer reward options such as wholesale gift cards. The crucial thing is to know your clients and their preferences so you are better able to offer them an incentive they won’t be able to refuse.
Planning to use bulk gift cards or promotional gift cards as part of your customer incentive program? Contact us at Mpell Promotions today to choose from any of our high-quality but low-priced promotional products.