Targeting a new market is a great way to grow your business, but it's not always easy. Here's how a customer loyalty and rewards program can help.
Is it time to expand your business? One of the key ways to grow is by targeting a new market. This allows you to increase revenue by selling to more people than ever before, while still keeping your current customer base.
But targeting a new market is easier said than done. You might not know the demographics of this new market as well, or they may not respond to the same branding or advertising. At the same time, you have to be able to retain your original customers, the ones that like what you're doing currently and who may not react well to change.
The aim of a customer loyalty and reward program is to influence, motivate and engage.
Enter customer loyalty and rewards programs. These can help you to keep your current customers and reach new ones. Here's how:
What is a customer loyalty and reward program?
The aim of a customer loyalty and reward program is to influence, motivate and engage. You do this by offering discounts for repeat custom or giving prizes. The most common way this works is via a tally system, whereby customers gain points as they return to your business, and a certain number equals a prize or discount.
This 'members only' mentality, whereby customers only get rewards because they are part of your loyalty scheme, will then attract new customers who also want to join this exclusive club.
The importance of choice
Many customer loyalty programs fail because they don't offer choice.
Customer loyalty and rewards programs sound simple, however not all of them are successful. Instead, they often fail because they don't offer choice. Not everyone is the same, and so to treat your customers as such shows a lack of understanding or care for who they really are.
Being able to offer a broad range of prizes or discounts is therefore key to tapping into a new target market, as you'll be able to differentiate your loyalty scheme from the hundreds of others that just offer one or two prizes and don't give customers what they really want.
Choice also means you'll be able to keep your current customer base, as they'll be able to choose rewards that appeal to them, while the new target market may select different prizes more appropriate to their demographic.
Analysing data
Data has become a mainstay of business success, allowing organisations to gain insight into how they operate and what they could improve. And this is no different for rewards programs. By having a card that a customer will swipe every time they make a purchase, you can see exactly which products are most popular among your current customers.
You can then target new customers with your most popular products first. Once they become repeat customers due to your loyalty scheme, you'll be able to introduce them to your broader product offering.
By knowing who your most profitable customers are, you can also target similar demographics in your new market.
A customer loyalty and rewards program with Power2Motivate
Our customer loyalty and rewards programs are fully customisable, so you can offer a broad range of discounts or free items depending on what will work best for you. With our comprehensive real-time reporting you can measure ROI, understand what drives your customers and collect information allowing you to get closer to them. You can also conduct surveys to gather new insights, and all of this can be incorporated into your tailored loyalty programs.
Talk to us today to find out more about customer loyalty and rewards, or request a demo!