Generate Revenue & Build Loyalty


Posts Tagged ‘customer loyalty statistics’

Sales v Service: The Battle For Revenue

Wednesday, November 24th, 2010

How many times have you come off a phone call, left a shop, or finished reading an email, and thought ‘Wow! What great customer service!’?

Not many, I’d guess.

Real noteworthy service has unfortunately become the exception rather than the norm. That’s why it can make all the difference in highly competitive markets. In fact, the U.S Chamber of Commerce estimates that 68% of customers who leave a company do so because they feel undervalued.

Clearly, the way you treat your customers has a huge bearing on the loyalty they show to your business in the long term.

(more…)

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Looking for loyalty? Just ask.

Tuesday, August 24th, 2010

Companies have always looked to instil loyalty in their customers. It’s an invaluable way of increasing customer retention, generating incremental revenue and growing a business.

Loyalty can be encouraged through a variety of methods, including e-marketing, offering consumer rewards and demonstrating excellent customer service. But perhaps the most effective way of forging a lasting relationship with your customers is by asking for, and acting on, their feedback.

With this in mind, The Rocket Marketing Group present their 5 Top Tips for generating and utilising customer feedback. (more…)

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Why consumer incentives and brand coalition are increasingly essential sales promotion techniques for any brand

Wednesday, December 2nd, 2009

The Wise Marketer recently reported the rise in coalition marketing as a sales promotion technique. Sales promotion has become more prominent in the last year in a blanket effort to get people  to spend their money less cautiously. It has become important to reward consumers for their loyalty so that they continue to spend money at a time when people are trying to cut back. Encouraging reluctant consumers to spend money continues to be the number one priority for brands at the moment and sales promotion is a proven way to do this. We are at the point where now it is an essential tool to remain competitive, particularly on price.

Sales promotion through consumer incentives and brand coalition is not a new or reactionary concept dreamt up as a recession solution. This has long been the bread and butter of companies such as The Rocket Marketing Group who put companies together in loyalty and membership programmes/ discount clubs and create rewards for staff or consumer incentives. The lure of big brands working together can be a powerful solution for potential rewards and an attractive consumer incentive whatever the state of the economy. All the current climate has done is to highlight the importance of sales promotion to consumers, making it now essential for all brands.

The ideas of brand coalition are the principles that loyalty and rewards programmes or discount clubs and consumer incentive rewards were built on. With loyalty and membership programmes/ discount clubs a member joins a club and then becomes eligible to redeem discounts at various retailers. The joint venture of big and small brands work to validate each other and produce a community of customer centric brands that members become loyal to because they can rely on them to understand their needs/ interests. These loyalty and membership programmes or discount clubs can be categorised to target certain markets such as entertainment, home & garden or white-labelled to match particular brands who want to sell the clubs as non-core products and earn incremental revenue.

The idea of high profile sales promotion has now become an integral part of the consumer shopping experience, so it likely to continue in some guise or other even as the economy improves.

Contact Us to discuss the possibilities of developing consumer incentives and brand coalition solutions through loyalty and membership programmes or discount club for your brand.

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Planning ahead still a safe bet for consumer savings – how understanding this can help customer retention.

Thursday, October 22nd, 2009

Childhood days of collecting small change for a piggy bank may seem like a long winded approach to financial efficiency, but the lessons of prudent saving, budgeting and most importantly patience – can be key to getting ahead in the current economic climate both for businesses and consumers alike. Hard pressed consumers have become savvy at spotting bargains/ finding ways to save money and it’s important for businesses to be aware of the general change in customer’s spending habits to improve customer retention.

One way consumers are making substantial savings is by spending a little time calculating income against regular outgoings and developing a weekly or monthly budget. Looking at figures isn’t fun, and whilst this may in fact sound too simple to be of use, once aware of both how much they are spending and primarily where they’re spending it, ways of reducing this spend become much clearer. The key to customer retention for businesses is to be aware of the intended target market – knowing how they approach saving and subsequently positioning your brand as an essential purchase.

Consumers are now shopping around

Businesses operate in a competitive market and in many sectors, like energy for example, for consumers prices can seem frustratingly similar between suppliers. There is however evidence of fierce competition presented through indirect promotions like customer benefits and rewards. Even if consumers don’t take advantage of rewards immediately they retain information for future use. Price comparison sites can help with this process for utility bills and insurance especially, but sometimes this involves them engaging with your brand on the phone – consumers taking ten minutes out to get a quote or two will be receptive to any extra benefits you can communicate to them, making it easier for your company to achieve customer retention. A recent high-profile promotion is Tesco’s BOGOL (buy one get one later), designed to improve customer retention instead of just moving volume of stock.

Considering before buying

Bigger purchases like cars, furniture, computers, mp3 players, etc. can all set consumers back substantial amounts of their hard earned income. Before they buy, they can check to see if there is any scope for negotiation on price, or if the supplier would throw anything else in! More importantly though, consumers now usually ensure that they’re buying the right item beforehand. It’s too easy to regret an impulse purchase just a few months later, or to get a gift wrong for a loved one on Christmas eve. At the end of the day, if times are tough consumers should always ask, “Do I really need this?” A good technique people are using is waiting a day for every £100 in the price (or £10 for smaller purchases) – if still happy by the end of this period then they’ll at least have had a chance to think it through thoroughly and check out the competition. In this instance if you can’t  sell to them straight away, it’s about making the effort and giving them a reason to return (competitive price, the best service, any optional extras you’ll throw in just for them) – nurturing their needs and respecting a requirement for space plus reassurances.

Ordering pre-purchase vouchers

High street stores and big name brands like Debenhams, Topshop, Miss Selfridge, PC World and B&Q often either provide their own form of pre-purchase voucher, or are part of a wider voucher like Love2shop or SayShoppingPass. Through membership to a loyalty and membership programme or discount club such as The Big Savings Club or The Home & Garden Club for example, consumers are able to take advantage of savings of up to 7% on many of these vouchers. With Christmas on its way consumers will be spending more over the next few months on both everyday expenditure like energy, right through to gifts for friends and family and luxuries like good food and drink. So is this something your business can take part in? One of the easiest ways to achieve customer retention from vouchers or discounts is through a loyalty and membership programme or discount club. The operators of the loyalty and membership programme or discount club such as The Rocket Marketing Group, manage the club and can design bespoke vouchers featuring your discount to feature in print and online. This marketing service is usually free, all your brand has to do is offer members of the loyalty and membership programmes an exclusive discount.

Not yet made the most of customer retention by offering consumers an exclusive discount through a loyalty and membership programme or discount club? Contact Us today.

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Consumer loyalty as defined by marketers v’s consumers themselves

Wednesday, October 21st, 2009

As a customer, the brands you consider yourself to be loyal to may be different from the brands that consider you to be loyal to them. Is this because businesses measure loyalty by statistics – the potentially biggest spending consumers are considered the most valuable/loyal whether they have an emotional attachment to the brand or not? These consumers are not necessarily the most valuable in terms of long term profitability or opportunity for the ‘word of mouth’ marketing (which is increasingly important during the social networking revolution). For customers, loyalty is more of an emotional concept and brand affinity is normal for defining who we are; subsequently we can become more susceptible to act upon the call to action or passing on core brand messages.

A lot of marketing campaigns fail to address this 3 dimensional element of consumer loyalty and miss the opportunity to reward and encourage consumers that whilst in business terms are not considered loyal, but in social terms most definitely are.

In the case of loyalty marketing is it not therefore important to not only reward the loyalty of high spending customers (through points schemes etc.) which of course should always be the main priority, but to also reward those who through their brand loyalty ensure continual use of the brand and bolster the positive associations with a brand?

Loyalty marketing or sales promotion has emerged as a mutually beneficial programme that seeks to appease both customers’ and businesses loyalty needs. From a customers’ point of view they are receiving what they consider to be a special discount – particularly in the current economic climate, this can be seen to help financial burdens. A percentage discount can ensure the reward is given in direct correlation to the amount spent, so everyone is rewarded for the amounts they spend.

It boils down to consumers needing to feel valued no matter how much they are spending – surely if your brand nurtures its consumers through loyalty marketing, its consumers will nurture your brand?

Contact Us if you are interested in loyalty marketing by featuring a discount in a loyalty and membership programme or discount club to improve customer loyalty by rewarding new and existing customers.

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Customer retention can increase profitability by 125%

Thursday, March 19th, 2009

Improve customer retention through reward programmes and loyalty schemesAs a company that specialises in loyalty and membership programmes, we recognise the importance of customer retention for increasing a business’ revenue. Studies have shown that by increasing retentions, a company’s profits can grow dramatically.

According to a study by the global business consulting firm, Baines and Company: A 5% increase in customer retention can increase a company’s profitability by 75%.”

In another study, Zero Defections: Quality Comes to Services by Frederick F. Reichheld and W. Earl Sasser, Jr. this theory was applied directly to a business, and the results were astonishing. Reichheld and Sasser reported that: “When MBNA America, a Delaware-based credit card company, cut its 10% defection rate in half, profits rose a whopping 125%. But defection rates are not just a measure of service quality; they are also a guide for achieving it.”

Although the exact figures from the studies vary, one thing is for sure; they consistently show that when customer defection rates are lowered, profits increase. And with the current economic climate in mind, these are results that can’t be ignored, whatever sector you trade in or whatever the size of your business.

Having confirmed that customer retention is essential, the question then has to be – what can a business actually do to increase loyalty?

The Rocket Marketing Group has created the answer for businesses, helping them to deliver excellent customer service and drive loyalty. Through our range of loyalty and membership programmes companies can offer club members (customers) exclusive discounts or alternatively sell our products to provide customers with a comprehensive shopping experience.

Loyalty and membership programmes not only drive repeat business for clients by offering members great savings, but customers can also feel exclusively tied to a brand by belonging to a club; their relationship with a brand is deeper than the average consumer – they feel special. Joining a club can also be an expression of the customer’s personality. It can enhance their affiliation with the area of interest, for example, The Rocket Marketing Group’s Entertainment Club is perfect for someone who considers themselves fanatical about films and The Midweek Dining Club is a must for all foodies. By offering members of a club exclusive discounts and rewards you are confirming their value as a customer and giving them a connection with the brand.

The Rocket Marketing Group loyalty and membership programmes include: The Big Savings Club, The Entertainment Club, The Midweek Dining Club and The Home & Garden Club. The clubs are managed by us and give a hassle-free way for businesses to offer customers more. And because we are proud of our excellent customer service record, achieved by our team of 30 technical, fulfilment, marketing, call-centre and creative specialists, all managed in-house, a partnership with us can benefit any brand enormously.

Contact Us for more information and to discuss how our loyalty and membership programmes can help your business.

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