Win the loyalty of your customer in 5 steps
Source: Webpower blog.
Loyal customers spend more, cost less, talk about it, and stay customers for a longer period of time. There are several ways to increase customer loyalty. Email marketing is one of them. It gives you the opportunity to communicate with customers one-on-one, zeroing in on their interests and preferences. The figures presented by Magneds point out that loyalty, in turn, is an important indicator for the success of an email campaign, because loyal customers show significantly higher open, click through, and conversion rates. Customers who participate in a loyalty program open a commercial email from the company concerned as much as 40% more often — on average.
Enough reason to dive into loyalty a bit deeper. At the event, Magneds explained its 5M method, which consists of five steps:
- In this step, it is important to include customers in your loyalty program. The program can be anything; saving points in exchange for a discount on a next purchase is most common. Be sure to ask some relevant questions upon registration for the program — about family composition, for example — but make sure that your questionnaire is not too long. And that you never ask for information that you will not use, anyway.
- Now, you analyze the data that you collected in step 1. While doing so, you should involve as many other data sources as possible: clicking behavior on your website and in the newsletter, purchasing behavior in the past. The more data you involve, the more insight you will gain into customer behavior and underlying motivations.
- In this step, it is about steering customer behavior towards your brand to a greater extent by giving the customer reasons for buying your product. Email marketing plays a very powerful role in this regard.
- It is important to motivate the customer, but ultimately, this motivation should be converted into action. That is what you do in this step. The likelihood of action is greater if there is an attractive reward: a discount on a subsequent purchase or on a different product, a free trial set of a related product, et cetera.
- Measuring is knowing and provides a foundation for improvement. Just like you analyze every email campaign afterwards, it is also good to measure and adjust your loyalty program periodically.
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