Have you noticed the trend?
In good times we spend on advertising and events. We spend on the fun and exciting. We spend on the memorable messaging. Boy, do we spend!
In bad times, budgets get cut, customers go away, the lack of sustainable opportunity from our advertising spend is painfully obvious. We scramble. We shift our spending. We shift our talent. We focus on our existing customers. We pivot to loyalty.
Many are thinking, bad times don’t come that often, my focus on acquisition invalid and justified. Think again. Recessionary events happen every 10 years. Yet, each time they take us by surprise.
When the pandemic hit, businesses with marginal or no insight into loyal buyer behavior struggled to adequately plan resources.
What organizations don’t always realize is that a strong loyalty strategy helps grow the business overall. Strong loyalty strategies deliver customer experiences that go viral, bringing in new customers in addition to retaining existing; making loyalty your most important business requirement.
Loyalty’s Day in the Sun
When the pandemic hit, organizations with loyalty programs fared far better than those who didn’t. In general, loyalty programs will help you sustain sales from your core customer base (which is ~80% of your business). Restaurants with loyalty programs and had a way to communicate with their loyal customers, we’re able to tap these people, give them the information they needed to trust the restaurant, and keep dining – even if that meant curbside pick-up and dining at home.
Any other industry, hit by the pandemic the way the travel industry was hit, would have become obsolete. Yet that hasn’t happened to the major travel organizations. Yes, they have received government funding. But what has really been sustaining these organizations is their loyal customers and their customer loyalty programs. Airline loyalty programs actually generate revenue, in addition to the revenue generated by customers purchasing tickets. Their partnerships with credit card companies and other organizations bring in revenue outside their core value proposition.
It’s time to make Customer loyalty a priority in your organization. Annex Cloud and our extensive partner network will make it easy for you to build strong bonds with your customers through hyper-personalized relevant customer experiences. Call us today to start planning your strategy.