How many people carry loyalty cards in their wallets and purses? How many people use these?
- A loyalty program can:
- Induce initial purchases
- Encourage repeat purposes
- Create a reluctance to switch Brands
- Inspire a customer to refer your brand via Net Promoter Score
So, what is a Net Promoter Score and how should we be using this on our stores?
A net promoter score is a based on one question: How likely are you to recommend a collegue or friend on a scale of one to ten?Here's the results:
- 1 to 6 are those that are not happy with you,
- 7 & 8 are indifferent and those in the
- 9 and 10 category will be active promoters
so the obvious plan here is to have more 9 & 10s than 1-6s.
How can you improve your net promoter score and increase loyalty?
- Offer Customer Loyalty programs
- Offer significant differentiators (Price & Customer Service being prome examples)
- Customer experience
- Do something that the customer is not expecting.
What sort of loyalty could you reward?
- Points
- Referral fee's (both you and a friend win)
- Discount
How does this fit?
Multi Channel is over, we now just have different touch points including non purchasing touches such as Facebook and twitter but they all contribute to the end result: increased net promoter score. It is vitally important that all methods of buying from you have congruent payment methods & returns policy as a customer will see no difference in buying online and picking up in store vs getting it delivered to their home address AND THE MOST IMPORTANT part is to have the same loyalty program across all channels.
So, practically how can we increase loyalty?
In order to increase loyalty, you can then start to offer loyalty points based on a non buying action such as liking on facebook, tweeting about a product, uploading a product review video on youtube and then move onto purchasing based rewards. If you have a retail store you must look into this - the rewards are there to be taken (no pun intended!).
Still not convinced?
HereÃs a stat: 5% in customer loyalty leads to 75% of net profit increase...For more information, check out our day at Meet Magento UK -