Our last SBNG after-work networking meeting at Nexus Smart Hub in Wyong started with a warm welcome to new members and guests. This type of meeting provides a great opportunity for face to face networking as most attendees have time to stay on for a chat after the formal part of the meeting is finished. If you find the breakfast meeting too rushed because you have to get away to get to work then come and join us in Wyong next month.
The topic for the meeting was all about “Customer Loyalty Programs” and why this could they be the answer for the survival of small businesses. It was presented by our vice-president Mark Reynolds of MKR Customer Solutions who explained the benefits for business owners of involvement in a Customer Loyalty Program. Here is a synopsis of the presentation.
The answer to first question as to why a small business should consider becoming a loyalty merchant is shown in this table.
If you have any doubts about the merit of loyalty cards then consider large companies such as Woolworth and Coles with their Woolworth Rewards and Fly Buys cards. They spend a lot of money on promoting their cards and it is money well spent as, according to Harvard Business Review research, a mere 5% in increase in customer loyalty can increase profits by as much as 25% to 85%. Keeping in mind that the cost of acquiring new customers can be as much as five times more than the cost of customer retention, it goes without saying that a business model that helps to build a loyal customer base is paramount to keeping your marketing costs at a minimum.
A very important factor in creating and maintaining a loyal customer base is that you need to clearly understand your customers i.e.:
- What percentage are loyal customers vs casual customers?
- Who are your best customers?
- What attracts customers to your business?
- What do your customers think about your business?
- What is your customer acquisition cost?
Joining a program like Cash Back Solutions is a simple and affordable process and the benefits include:
- Reducing your cost of ineffective marketing
- Increasing your business revenue
For more information contact Mark Reynolds who will be happy to answer your questions. Mark can be reached by email firstname.lastname@example.org or by phone on mobile 0413 754 750
Thank you Mark for a very informative talk about “Customer Loyalty Programs” and why this could they be the answer for the survival of small businesses.