Sports teams have a knack for sparking fierce brand loyalty and lifelong support of their teams. While most businesses do not experience the same level of rabid fan mania, they can rely on customer loyalty to ensure their business thrives. Creating a lasting relationship with customers benefits businesses and solidifies their place in the local community. Here are the top three reasons loyal customers are the key to success.
1. Loyal Customers Stay True to Business
Having loyal customers helps local businesses keep doors open during uncertain economic times. Customers are willing to spend hard-earned dollars at a business they trust. Social distancing policies and innovations businesses are making to comply with regulations during the COVID-19 pandemic has highlighted the importance of having a loyal customer base. While customers can’t stop in for their morning cup of joe, coffee shops are staying afloat by relying on loyal customers to order beans online for home delivery. The smokers are still burning at barbecue restaurants because customers are picking up their meals curbside. Local businesses that are shifting to online sales to cope with required store closings are seeing sales from loyal homebound customers. Loyal customers trust their favorite businesses and are willing to adapt their purchasing strategies during times of uncertainty.
2. Loyal Customers Visit Regularly
Loyal customers form first-name relationships with employees because they visit regularly. Forming a relationship with a customer ensures positive reviews and helps grow business using word-of-mouth marketing. Research from HubSpot reveals that 81 percent of customers trust recommendations from family and friends over those from companies.
3. Loyal Customers Increase Sales
A 5 percent increase in customer retention correlates with at least a 25 percent increase in profit, according to a report from Bain & Company Inc., a Boston-based management consulting firm. Frequent customers spend more money with a business over their lifetime, reports reveal. A loyal customer base fuels sales and ensures profitability.
Our Town America’s Welcome Package Covers All the Bases
Our Town America delivers a one-time housewarming gift filled with proven offers from partnered businesses. The new mover marketing program puts local businesses in front of new customers who are searching for options. The proven offers are backed by data showing which incentives receive the best response rates from customers. Our Town America’s proprietary new mover marketing system offers the most accurate databases and mailing lists in the country. High value, unparalleled accuracy, and proven response rates has made Our Town America the leading new mover marketing program for 48 years.
Marketing to New Movers a Home Run for Local Businesses
Our Town America helps local businesses establish loyal, repeat clientele by appealing to new movers. New movers spend more on goods and services in their first six months than established residents spend in two years. In 2019, nearly 10 percent of the U.S. population moved, or 31 million people, the U.S. Census Bureau reported. Millennial movers shop locally, with 57 percent choosing a new home because it has restaurants and shops within walking distance, a survey conducted by Our Town America revealed. Making new millennial residents aware of nearby businesses is a great method for driving sales.
Using Data to Craft Proven Offers
Our Town America relies on innovative software to enable partnered businesses to see the impact of the welcome package. The company’s proprietary TruTrak® software allows each business to scan certificates at the point of sale. The information is uploaded to Our Town America’s database, which instantly updates to reflect the redemption. Our Town America compares the certificates scanned to the number of mailings that have gone out to help determine if an offer is successful. For example, data compiled from Our Town America reveals that customers are more likely to respond to proven offers that provide a free gift, rather than a coupon that provides only a discount. A pizza joint can draw in customers by offering a one-time-use free pizza gift certificate.
To ensure the success of proven offers, Our Town America takes the additional step of surveying new movers to get an unbiased review of the welcome package. Data from the survey helps Our Town America deliver future proven offers to the succeeding sets of new movers.
Learn more about how Our Town America can help your business build a loyal customer base using proven offers today.