Business owners often search for “the key” to growing their business, but it’s easy to get lost amidst the barrage of advice and soliciting voices they receive. We’ve done the work for you, and here it is: Customer Referral Programs and Customer Loyalty Programs. Two of the most common pain points for businesses is “how will we bring in new customers” and “how will we increase the visit frequency of current customers”. Customer referral programs help to bring in new customers, and customer loyalty programs help to reward your current customers which has proven to increase customer frequency by 400%.
Customer Referral Program
The logic that customer referral programs are based off of is word of mouth marketing—one of the most basic marketing principles. This is for two main reasons:
- As good as your product/service may be, let’s be honest, people are much more receptive to product endorsements from friends than a soliciting message.
- Most successful companies allocate an average of 7-8% of revenue on their marketing budget. Although that 7-8% is worth every penny, the effectiveness of word of mouth marketing is the most cost-effective form of marketing, so set your business up so that word of mouth can spread like wildfire.
This is something that we do at 2for1: we give you the means to turn your loyal customers into your marketing team. That process is twofold: It starts with the favorite us cards and ends in the customers sharing your offers on our app with friends.
- We give businesses 500 favorite us cards.
These are cards the size of a business card that businesses give to customers at check out. The cards prompt your customers to download the app (and tells them how) and encourages them to share your offers with their friends and family. 2) We also have these table tents with a QR code so they can get straight to the app at check out.
- The next part of this referral program is the ‘share offer’ feature on the app.
The customer can simply tap share and then they have the ability to share the offer via text, social media, and email. Giving your loyal customers the ability to share your great offers with others is a great way to get first-time customers in the store to grow your business organically. The Harvard School of Business states exactly that, “Loyal customers also frequently refer new customers to a supplier, providing another rich source of profits. Referrals are lucrative in traditional commerce as well but, again, the Internet amplifies the effect, since word of mouse spreads even faster than word of mouth.” In other words, this powerful feature has massive potential to bring your business new customers.
Customer Loyalty Program
The foundation that 2for1’s loyalty program stands on is the power of rewarding your customers. Research has shown that bringing in new customers can be 5-25 times more expensive than maintaining current customers. We help you do both, and as previously mentioned, 80% of revenue usually comes from 20% of your customers. In the same article the Harvard School of Business provides the following staggering statistic, “Increasing customer retention rates by 5% increases profits by 25% to 95%”. That is the value that 2for1 offers businesses. Not only will we bring in first-time customers, but we help you to increase your customer visit frequency, which history has shown, is the largest sector of your revenue. In addition to all of that 2for1 helps companies save thousands of dollars, time, and maintenance that is required to develop their own rewards app.
In action, 2for1’s loyalty program is based off of the favorite us cards. Passing out the favorite us card alone is limiting its potential influence. Our talented onboarding specialists will train owners and store managers on this process, who can then train their staff. As you pass these out to your customers, thank them for their business and say, “To show you we’re grateful for your business we’ve partnered with 2for1 to give you sweet deals.” Imagine the effect that will have on your customers. In that moment, they will realize that they are more than a number in your company’s eyes, and their loyalty to you as a company will deepen. It will continue to deepen as they come in time and time again as you reward them with great deals. The likelihood that they will share your deals with their best friends and family members will also increase.
Many customer referral programs and customer loyalty programs can carry an exorbitant cost. Not only is 2for1 very affordable for companies but believe it or not this is only part of what we do for businesses. We also throw in social media services, offer valuable analytics, and have the equivalent of a text-message-notification system built into our app at the same price. Give us a call today, so we can make an immediate impact in helping your business increase the scope of your customer base.