If you’re a loyal customer, you’re often on a worse deal than a new customer.
You only have to check your letterbox or answer the front door and you will be offered a better rate than the one you are currently on.
You may even contact the current company you’re with and ask for a better deal, it usually works, and if not, you’ll find a better deal elsewhere.
In her 2018 Forbes article, Jia Wertz discusses the marketing efforts and money that is spent on driving traffic to business can cost five times more to attract a new customer, than it does to retain an existing one.
Knowing this, it makes sense for businesses to focus more efforts on rewarding loyal customers.
Businesses that provide value know that their customers will keep coming back. These customers tell their friends and family to also do business with you, they become your promoters and create good profit for the company.
For me, I’m loyal to an airline in Australia. Airlines provide great loyalty programs, it’s big business for them and aspirational too. Airlines know the numbers and that it will pay off. It’s not just a fancy card and great lounges, it comes with much more benefits than that. I may not always get a perfect experience on every flight but I know I will be well looked after and that my customer loyalty is valued.
How are you rewarding your loyal customers?