Did you know that when it comes to retail, around 40% of a company’s revenue is coming from repeat customers? (source) This dramatic statistic showcases the importance of rewarding your customers so that they become repeat customers. Even if this stat is not shocking to you, consider this as well: You would have to bring in five to seven shoppers to equal the revenue of that one return customer. The key question that business owners are asking: how can they ensure they are getting these repeat customers back to your physical retail environment?
The Challenges Faced
In today’s culture of small, medium and enterprise businesses, the same question is apparent: how do we bring customers back to our store. Right now, many companies are giving away products and services for free in hopes that this will bring their customers back to their physical store environment on a repeated basis.
What makes this even more challenging is that businesses are giving away perks, free products, and merchandise without quantifying the return on investment.
The Old vs New Approach
It is estimated that the average retailer spends around $20 million annually on marketing tactics that are meant to persuade people to shop with the retailer. However, only a slim number of those who are reached by these promotions actually buy anything.
The same can be seen when merchants promote social media giveaways, blog giveaways and the like. The problem with this is tracking and quantifying sales based on impressions and calculating the exact ROI when it comes to these social media promotions. Furthermore, you can’t base a customer becoming a loyal repeat customer from a free promotional purchase through Social Media.
Merchants are giving their products and services to potential customers for free in hopes that they will shop with them when realistically this is not guaranteed. Where is the company's reward? A company is giving away these products/services for free, investing this money into advertising…and where is the reward for them? Yes, they may be rewarded with a sale or two, but is this enough?
That is why the old approach is making way for a new idea…one that is going to reward the customer while also rewarding the business. It will not only allow a business to attract in new customers or repeat customers, but the business itself can learn a thing or two about who their customers are, the products and services found more favourable, consumer behaviour and so much more.
This information collection can be the way that makes your company perform at a much higher level, without money being wasted on a shotgun approach comprised of on advertising and free merchandise.
Related Article: Loyalty Rewards Apps for Small Business
What is this new approach? Offering these free products/services through a personalized mobile app/digital reward program.
A Personalized App: What Businesses Gain
When a business decides to utilize a personalized app or digital rewards programs, they gaining so much insight on customers that download and interact with this app on a daily basis.
Some Benefits of using a platform like this may include:
- Connecting with your customers in the easiest way possible. When customers download your application, chances are they are a loyal customer and want to hear from the business. This equals no more wasted money on advertisements to the wrong demographic!
- A business will gain analytics on all customers subscribed, allowing a business to really know who their customers are and what they want.
- This app allows you to build your own network of segmented customers and maintain those relationships in a more personalized matter.
With a personalized app solution allowing seamless connections between merchants and their vast customer base, all parties are winning. Mobile customer engagement solutions provide customers with a centralized app to keep constant connection with their favourite businesses and earn loyalty points with each of their purchases, while providing businesses with the intel that they need to succeed in a competitive market. Gofindo can help any business to establish the best customer engagement platform via a personalized mobile app that is possible, so every business can reap the benefits that this offers!
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