6 Ways You Can Reward Your Loyal Customers

How important to your business is customer retention? It’s crucial! In fact, we’ll go as far as saying that retaining buyers can make the difference between success and failure.  

According to Harvard Business Review, acquiring a new customer is around “5 to 25 times more expensive than retaining an existing one.” Meanwhile, Forbes shared research by Bain & Company’s Frederick Reichheld which indicates that “increasing customer retention rates by 5% increases profits by 25% to 95%.”

To sum that up, you can’t expect significant growth if you’re doing a terrible job in retaining your buyers. Instead, you want to build strong relationships by providing them with positive customer experiences every time they interact with your brand. The goal is to keep them coming back – to the point that they become raving fans!

Having a solid customer loyalty program can play a big part in achieving that. In case you don’t have one in place yet and need some ideas to get started, we’re here to help. To give you a bit of an overview, you will have to choose the right ways to do customer rewards.

Here are 6 ways you can reward your loyal customers:

1. Give gift vouchers

reward your loyal customers

Customers love it when they receive gift vouchers from businesses they support. It motivates them to keep returning. Sometimes they even pass the vouchers to friends and loved ones to use.

In that sense, gift vouchers function not only as a way to reward your loyal customers. It also becomes a marketing tool. You get to retain your customers and reach new ones, while boosting your brand awareness all at the same time!

Feel free to be creative when using this strategy. Although some businesses only give gift vouchers away during the holiday season, you don’t have to limit yourself to that. For example, you may give them as birthday gifts or when customers write you a positive review online.

2. Run an early access program

This tactic can be effective in drumming up excitement among your loyal customers. Giving them early access to your new products can be a great way to make them feel extra special. Prior to doing a public launch, invite your customers over so they get an exclusive first look (and first dibs!) on your upcoming offerings before anyone else.

Another benefit of this is that you’ll have the chance to see what your core customers think about your product or service. You can receive immediate feedback and maybe even make improvements, if necessary, before the actual release.

3. Offer a referral reward

reward your loyal customers

A referral reward program encourages your existing customers to introduce people they know to your business. In a way, they become part of your marketing team and then you match their efforts with rewards.

Of course, this will only be possible if your customer is actually satisfied and happy with your products. If so, they will gladly endorse your brand by sharing their experience with others.

4. Do raffles

There’s something about the idea of winning random prizes that people find appealing. Raffles do exactly that and more.

This is a simple marketing strategy that keeps your customers engaged. Just make sure to prepare prizes that will excite most of your target market, and have complete transparency in how prizes are awarded. this can be an effective way to reward your loyal customers - and even your new customers.

5. Share your customer’s testimonials and reviews

At times, you will receive positive customer reviews on Google or on your social media channels. Once you do, get in touch with the author and ask permission if it’s okay with them to share their review elsewhere. You can then create a graphic featuring the customer’s quotes, along with their photo.

Customers who get featured by brands are likely to return and may likewise recruit their friends, family members, or colleagues to support your business as well. Furthermore, this can be an excellent opportunity to humanize your brand. Others will likely develop an interest in your products when they see testimonials and reviews from real people, as opposed to advertisements.

6. Partner with different businesses to offer more perks

This is something we’ve been doing for quite some time now here at The Farm. Aside from gaining access to our amazing coworking spaces and private offices in NYC, every Farm member also gets a lot of benefits from partner brands.  

Based on our experience, customers always appreciate it when we make discounts to a useful array of products and services available to them. At the moment, our partners include Amazon Web Services, Flash Pic, My Lead Catalyst, Tri Net, Hemster, Sennheiser and many, many more.

You can do something similar to this, such as offering gift certificates from local businesses such as coffee shops, gyms, and movie theaters, among others. In return, your partner businesses will also lead some of their customers to your door. So this can be a real win-win for both sides.

In case you’re based in New York and want to be one of our awesome partners, go check out our Farm Soho Perks page. You may also contact us at (917) 722-5027 or via [email protected].

Final thoughts: There are many ways to reward your loyal customers

These are just a few customer loyalty programs you can implement to help boost your startup. At the end of the day, you, as the business owner, have to go with your instincts about what methods to use to achieve your customer retention goals.

As a StartUps Magazine article tells us:

“The businesses that get the most value out of reward programs will be those that adopt an agile approach and use data to offer customers well-targeted, more personalized rewards.”

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