Statistics state that it is easier to maintain and keep an existing client or customer than acquire a new one. It costs five to ten times more effort to get a new customer than retain an existing customer.
When compared to new customers, existing customers spend more. They spend above 67%. This is why about 65% of marketers, brands, and firms implement loyalty and VIP programs for their regular customers.
My initial thought was that the numbers associated with the loyalty program were high until I realised that I am a member of many loyalty programs. I recently went to four retail establishments, and now I have membership cards for all four. I do not only have the membership cards, but I also see lots of value in using the cards. I use these cards at all four locations.
Let’s examine my recent shopping trips.
First Stop – A Retail Store
This stop was essential because I needed to purchase some household supplies. After getting all the necessities, I used my membership card for the payment, and voila, I got $8 off my purchase because it was my month of birth.
My birthday just happened to be a surprise success of this specific trip. It is pertinent that I state that not all shopping trips come with lots of membership benefits. However, I’ve gained lots of value from the memberships, so I’ve opted to continue with the cards.
Second Stop – Lunch
The restaurant I visited also had me scan my membership card when making my purchase, and I was reminded by the salesperson that I needed two more purchases to get one free. The first time I signed up for the membership, I was given a free appetizer. As a regular customer, I now get occasional bonuses and promo offers, encouraging me to visit the restaurants more than I would have envisaged.
Third Stop – Clothing Store
The zeal to get new outfits for the coming changing seasons took me to this location. When I was making my purchase, at the point of payment, my membership card was scanned, and I was informed by the cashier that I was entitled to 30% off the purchase and that since it is also my birthday month, I’ll get an extra $5 off the sale as well. I’ve always known about the 30% off, but I was shocked by the extra discount.
I’m an ardent follower of these locations. I visit these stores virtually every month, and they also see much value in keeping me as a customer. I buy items too and give them a great impression. That’s why they are willing to offer me a $5, free meal, or 30% off my purchase. It keeps me happy and loyal. I guess it makes them happy too.
In a nutshell, membership cards have lots of value. You should get them too. How many membership cards do you use and have? Start producing membership cards to create customer loyalty.