Most companies instinctively focus on finding new customers but many fail to effectively look after the customers they already have. This leaky bucket approach is a costly way to run a business, it’s a proven fact that acquiring new customers can cost between 5 and 10 times more than keeping existing ones.
What’s more, research shows that loyal customers spend as much as ten times more over their lifetime than new customers.
All sounds great. So how do you increase customer loyalty?
It’s all about relationships
Regularly contacting your customers with relevant messages and offers will keep your brand top of mind. And if they’re always thinking of you, their loyalty will grow.
So building better relationships with existing customers is essential to growing your business and one way to do it is through relevant, regular communications. Boden are a great example of a company that uses email and direct mail seamlessly to stay in regular contact throughout the seasons. I don’t know anyone who hasn’t responded to a Boden communication after it’s posted through the door!
Email Marketing is a popular tool for businesses who want to keep in touch with their customers. It’s quick, cost effective, and (fairly) easy to use. When done correctly, it’s a great way to get in front of customers and engage them with interesting content. Being digital also means measuring results is easy and simple to do.
Interestingly though, as more and more brands bombard our inboxes and the likes of Gmail automatically sift customer’s inboxes to remove social and promotional updates, it’s much harder to cut through. That’s why there’s a huge emerging trend back towards towards print communications as a key part of the marketing mix.
Read more: Why Millennials Prefer Print
There’s been a lot of research to prove the impact of print communications on customer loyalty. A staggering 97% of people open direct mail and 48% take action as a direct result. And it has great reach too, on average direct mail stays in the home for around 17 days.
When consumers interact with tangible communications it has a lasting impression on their brain, it arouses emotions. The more you make a customer feel excited, rewarded, special or you bring back a happy memory, the more likely they’ll take action and become a loyal customer.
So from a marketing point of view it makes complete sense to add regular, highly personalised and relevant direct mail to your overall communications campaign. It’s proven to make customers feel special and will keep you front of mind.
We talk about data all the time! Good, clean data is key to contacting the right people with the right message for both print and digital communications – nothing turns customers off more than incorrect personal details! And with GDPR coming into action next May, it’s more important than ever to understand people’s preferences and collect accurate information.
It makes good business sense to keep your data up to date too, it means you’re only ever talking to people who are interested and you’re not wasting precious time and money. You’ll gain greater insight from accurate data, identifying the most profitable customers, where they’re located and where to find more ‘lookalikes’ to target.
Direct mail marketing agency
A good customer loyalty campaign delivers excellent ROI by increasing customer spend and of course, providing useful data, which can be used to deliver even greater rewards. In short, gaining customer loyalty, and keeping it, is an asset to every business.
Is brand loyalty central to your marketing strategy? If not get in touch with Gecko today. We have been providing direct mail marketing services for nearly 20 years of direct mail experience. We specialises in developing highly personalised direct marketing campaigns that deliver positive ROI.