Engendering Customer Loyalty

Posted: Monday, April 15, 2013 at 2:21:44 PM EST by Richard Norris

Businesses survive through repeat customers.

So what strategies can you employ to ensure that you are bringing in repeat business?  Reward those who do come back.

Rewarding your customers is a proven way to ensure repeat business.  From small business to international franchises, rewards systems are an efficient way to get a customer coming back time and time again.

Here are three types of reward systems you can employ at your business to get customers coming back for more.

1. Repeat Purchase Strategies.

This is one of the most common.  Customers are rewarded after a certain amount of purchases. Subway is a great example of this type of strategy.  When I buy five subs I get the sixth sub free. Boost Juice Bars also have adopted a similar strategy as well as numerous coffee houses.

A strategy like this is useful for businesses that have essential consumables, such as ink cartridges or packaging material.

2. Referral Strategies.

Referral strategies encourage your clients to share with their friends the experience they have with your company.  SiteZero use this strategy.  When an existing client refers a new client that signs up with us, the existing client receives a reward of 10% of the income we receive from the new client every month.

This form of reward strategy is useful for those companies, like SiteZero, who have a subscription model built in to their products. Gyms are known to use the referral strategy.

3. Time Based Reward Strategies.

This strategy is suitable for businesses that don’t necessarily fit into one of the previous strategies.  The time based reward strategy rewards customers based on how long they have been associated with your business.  You would set certain milestones, for instance 12, 24 and 32 months, then for each milestone reward accordingly.  The first milestone could be that your next order is half price and the second milestone is that your next order is free, and then the third milestone is a dinner at a really nice restaurant (not Sizzler) or a weekend away.

Remember to reward based on your clients activities.  If they spent $75 000 with you over twelve months, a $500 weekend on the coast is a worthy investment.

Rewarding your clients ensures that they have a reason for coming back to you.  Often people will pay a higher price if they know that they will be rewarded for it.

Please feel free to leave any other strategies that you have used to reward your customers in the comment section below.

For an easy to use website with Zero Up Front Cost, Zero Locked-In Contracts and Zero Risk, contact SiteZero today.


Richard NorrisAbout the Author : Richard Norris.

Richard  is the CEO of SiteZero , an Australian based Digital Marketing Services organization.
Richard loves technology and is the Ecommerce evangelist at SiteZero.
You can connect with Richard on Google + , Linkedin  or at the SiteZero Facebook Page

Richard Started his first Business in 1985 and entered the online world in 1998.
He’s a bit like “The old man and the sea” of digital Marketing
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Comment by: Joshua Browne
Dec 6, 2011 at 3:58 PM
Absolutely Stephen, having a great product is the most effective way to engender loyalty. Unfortunately I can't advise people on whether they have a great product or not otherwise I would of in the post. Thank you for you comment I'm sure people will get value out of your input.
Comment by: Stephen Hamilton
Dec 5, 2011 at 4:58 PM
Great ideas, Josh. :) At the risk of stating the obvious, the most effective way to engender loyalty is to deliver a great product or service, and to do it in a friendly manner. Delighting people when they pay you is the best method for getting them to come back. Sadly, this is often overlooked, and other methods can appear 'gimmicky' if the customer just wasn't impressed in the first instance.
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