Loyalty
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Brand Recognition and Loyalty go hand in hand. Like sisters, they're two sides of the same coin. Many businesses think they can just get away with offering steep discounts. And as much as from the customer side, I might like that, the truth is it's wasteful and lazy. 68% of customers are willing to pay full price for your service if they feel a personal connection with your business. Loyalty and Brand Recognition are both smaller tools in the larger set available to you to compete for customer awareness and to meet customer needs. In Loyalty there's an invisible handshake between business and customer, and that is: "I'm agreeing to adjust your pricing because you're agreeing to come back more often and reduce my prime cost". It's a deal that's profitable on both ends. After all, businesses that drive these repeat purchases retain customers and improve their revenue by 15-25% annually.
Increased Sales
Increased Sales
This part is the obvious part. Every customer has a certain amount that they're going to purchase from one business or another. With a loyalty and customer relations manager, you can compete for that mental real estate with other businesses and motivate customers to come to your door. This accounts for the 15-25% increase in revenue number mentioned earlier. But how profitable does that 15-25% number become?
Reduced Costs
Reduced Costs
The hands down biggest advantage for Loyalty programs is the effect it has on your bottom line. We all love to be nice and do things for our customers, but who cares if your revenue is increased by 15 or 25% and none of that becomes increased profit?
The nice thing about this do-good behavior is that it's not only your customers and your heart that appreciate it, but also your wallet. Increased sales lead to reduction of food waste, which is something you can target with your loyalty program through the customer relations manager. This is anywhere between 4% to 10% of your inventory cost you could reduce immediately. This is also just more sustainable, at the end of the day. The second part of these savings is in your prime cost! Businesses have many fixed and semi-fixed costs every month. Such as energy, labour, real estate, insurance, equipment leases. All of these can be leveraged to work at a better scale! The more customers you have, the lower the cost per unit these become.
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