Launching a loyalty program in your trade business
Having a loyalty program is not something just reserved for your local café. Let’s remember something important: When it comes to selling, it’s a lot easier to sell to your existing customers, than attracting new ones.
- You’re 60-70% more likely to sell to an existing customer versus 5-20% to a new customer
- Existing customers are 50% more likely to try new products
- Existing customers spend 30% more than new customers.
Any business, especially a trade business can craft a loyalty program to reward their customers and make it worth their while to come back and spend their money with you. You just have to understand your customer and what motivates them, and then, get creative. Some examples of loyalty programs for trade businesses are:
- Spend over X amount and become a VIP (X% off for life)
- Earn points for dollars spent to be used as discounts off additional work completed
- Free Membership or ‘club’ cards: 10% off all prices and or ‘priority service.
Besides focusing on your existing customers, there are many other benefits to a loyalty program for your trade business:
1. Data collection
Customer data is crucial to your trade business. You need to know as much as you can about your customer to know how to appeal to them. Having a loyalty program in place will give you the tools to collect the data you need. And most customers are willing to hand over some info in order to receive something of perceived value in return.
2. Enhance your customer experience
If a customer can get something extra for their money, besides the product they purchased, they will experience the “wow factor” and come back for more.
A loyalty program provides the perfect vehicle to make customers feel like the money they spent was worth it. If a customer has a positive experience, they’re more likely to ‘return the favour’ in the form of repeat business or referrals.
3. Creates brand advocates
We all know people love to talk about things they love. Think of traditional word-of-mouth, as a happy customer tells two people about their experience, and those two people each tell another two people. Word of mouth is triggered when someone receives something that went beyond their expectations.
And as tradies know, word of mouth is the most powerful form of advertising a business can have, as each happy customer can steer dozens of new ones their way.
4. Build your online reputation
A loyalty program can be a great way to build your strong online reputation. Eighty-eight percent of customers trust online reviews, so it’s crucial to devote resources to gathering these reviews on the relevant platforms. reward your customers for leaving a review ask your customers to leave a review after redeeming a reward
A loyalty program can benefit your trade business in many different ways. It makes sure your loyal customers feel appreciated, as well as encourage them to come back to your business over and over again. Plus, the possibilities for your trade business are endless with the data that you will gain. So, time to add a loyalty program to your marketing strategy.
Interested in learning more marketing strategies for your trade business that’ll wow customers? Download The Marketing Maximiser where you’ll discover 6 low-cost marketing ideas for your trade business.