Enhance your brand image and give customers an incentive to stay loyal to your business with an effective customer loyalty programme from Red Letter Days Corporate.
Customer loyalty measures the likelihood that customers will continue purchasing products or services exclusively and consistently stay loyal to your brand based on their previous positive experiences. An effective loyalty programme can be used as a marketing strategy to encourage customers to continue purchasing with your business. To manage and promote existing customers, incentives are one of the most effective and cost-efficient approaches you can use.
You’re in good company. Our clients include…
We’ve worked with some of the world’s leading brands to help integrate corporate gifting into their loyalty, engagement, and experience programmes.
Why Is Customer Loyalty Important?
Customer loyalty is important because it can improve your brand image and because retaining customers is more cost-efficient than attracting new ones.
When it comes to promoting your brand, loyal customers are more likely to share their positive experiences with other potential customers and advertise the brand via word-of-mouth. They can also be a source of free advertisement, providing positive reviews online. This is also key to sourcing new customers.
According to research from a Local Consumer Review Survey, the average customer reads 10 reviews before they feel completely able to trust a business1. It is also simpler and less expensive to keep customers than to try to acquire new ones. The possibility of encouraging an existing customer to purchase is at least 40% more likely than trying to convert an individual who has never purchased from a business before2.
According to Frederick Reichheld of Bain and Company, a 5% increase in customer retention grows profits by more than 25%3. Customer retention is the method of attracting current customers and incentivising them to continue buying products or services from your business. Using retention techniques, a business can form meaningful relationships with consumers who will develop a loyalty to the brand. This over time will increase growth in the lifetime value of a customer and as a result increase revenue.
Meanwhile, customer satisfaction measures whether customers are satisfied with the service they have received. It is now one of the main priorities for business to achieve customer satisfaction. This is because many customers are focusing their loyalty less on products, prices and brands, but instead basing it on the quality of service they receive. 52% of people around the world feel that companies need to act on customer feedback4.
The Importance and Value of Loyal Customers
The value of building a loyal customer base has been proven and is crucial for any business to thrive. The benefits of having loyal customers include:
- Loyal customers are worth up to 10x as much as their first purchase5
- It is 6-7x more expensive to acquire a new customer as it is to keep a current one6
- A 2% increase in customer retention is equivalent to decreasing costs by 10%7
- 57% of customers who have participated in a loyalty scheme spend more on brands they are loyal to8
Making a Customer Feel Emotionally Invested
A comprehensive loyalty programme will make a customer feel they have an emotional connection to the brand. There is a strong correlation between personalisation and customer satisfaction. A study found that loyalty programmes designed to make customers feel recognised had 2.7 times more satisfied members10.
Other research indicates that 57.4% of customers join a loyalty programme to save money, while 37.5% of customers join to receive rewards11.
Designed around your own personal goals for customer retention, our products are an effective reward for customers and a strong incentive for loyalty. From traditional afternoon teas to unique adrenaline experiences, customers can receive rewards that will drive their incentive and encourage them to stay loyal to your brand.
How Can We Help?
For over 30 years, Red Letter Days has been a successful gift experience company that gives customers the opportunity to build new memories. We have thousands of experiences that are tailored to suit different interests and hobbies. You can use these personalised gift experiences as an incentive and as a method to reward customer loyalty.
We work alongside a variety of iconic brands like Champneys, the London Eye and Zizzi, plus an abundance of small businesses, to offer customers a chance to try new experiences at an affordable price. We strive to provide as much variety as possible, from exhilarating adventure days to blissful spa experiences.
Our products can be used as an effective way to reward customers for certain behaviours and triggers you have set up for them in order to receive rewards. We offer quality customer service, personalisation options and a fantastic variety of experiences to choose from.
Sources
1. Bright Local, 2019
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2. The Daily Egg, 2019
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3. Prescription for Cutting Costs, 2011
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4. Microsoft, 2017
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5. Huffpost, 2013
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6. White House Office of Consumer Affairs, 2019
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7. Leading on the Edge of Chaos, 2002
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8. Accenture, 2017
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9. Gartner Group, 2019
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10. The 2016 Bond Loyalty Report, 2016
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11. Technology Advice, 2014
Get in touch
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To discover how Red Letter Days Corporate can add value to your employee or customer proposition, please use our contact form.
0208 275 5506
Office hours: 9:00am - 5:30pm
For Charity Enquiries, please email charity@redletterdays.co.uk
For all customer service related enquiries, please click here
For all supplier enquiries please email – partnerops@buyagift.com
We’re always happy to hear from like-minded brands who’d like to partner with us.
