Many brands spend a lot of money on SEO, marketing, Facebook, Instagram, and Google advertising as well as influencer marketing to earn more customers. Major firms have a significant focus on customer acquisition.
On the other side, few give high emphasis on customer retention. Loyalty program assists in gaining more loyal customers and in growing micro-influencers.
Why invest in a loyalty program?
There is way more chance of selling to an existing customer than selling to new ones. You need more money to gain new customers as compared to retaining a customer you already have.
Loyal customers will be with you, and the least dependable will go with your competitors. The primary strategy and budget should concentrate on keeping them for a long time. Your loyal customers can bring new customers, and it will reduce your support costs and fuel the loyalty circle.
Importance of micro-influencers
The influencers are those who have millions of fans on social media and who make tons of money because of brand sponsorships. There are various types of influencers in several areas. But, the micro-influencers having fewer followers, are considered as the most effective type of influencers. Their lack of fame makes their approach very useful.
In this blog, you will know how to grow a micro-influencer using the loyalty program.
How to Build Loyalty?
To keep your customer loyal, you need to create some strategies and have to implement them to know which works best. There are a total of three must add ingredients to build a loyalty program. A mixture of strategy, approach, and tools can make any customers loyal.
What is the meaning of loyalty program and type of loyalty program?
An influencer loyalty program is one that rewards customers for their loyalty. The influencer loyalty program can be divided into majorly three parts.
- Point-based loyalty program– In this loyalty program, customers are encouraged for their loyalty by offering loyalty points.
- Tier-based loyalty program – In this loyalty program, you can divide customer loyalty into tiers, and customers of high loyalty are offered more discounts.
- Premium – You can create a community page when customers pay a one-off annual or monthly payment for benefits.
Recommendations over advertising
Your whole budget goes into retention if you concentrate only on rewarding customers. You can also build some loyalty and utilize this budget to gain more customers.
For instance, what could be higher than your customers sharing your content on social media? They are doing massive marketing for you in this way. You can turn your customers into micro-influencers and marketers by rewarding them for engagement.
- CX (Customer Experience)
It is essential to know the experience of the customers. It is imperative to keep your customers loyal. The brands should see how the customers feel after interacting with your store or product.
Monetary rewards are not the only thing that makes customers happy. User-experience plays a significant role in this. Make sure your customers are experiencing positive vibes. You need to fulfill their expectations and needs. Customer experience is the best way to implement an influencer loyalty program.
- Consistent and valuable content
Content is the King’- If you want to keep your customers loyal, then the content is the crucial part. Content could be anything that helps customers regarding the products. Your content may include blog posts, infographics, videos, photos, quizzes, guides, tutorials, and many more.
Content should be consistent, as well as valuable. It should contain relevant information that helps to build loyalty among the customers.
Key metrics
You have put your legs in all the above-recommended strategies. Now, it is time to measure success. Below we have explained some key metrics to measure the effectiveness. You can check whether your loyalty initiatives have met your own and customers’ expectations or not.
1. Customer Retention Rate – CRR
The percentage of customers who stay on your boat compared to the initial stage is the Customer Retention Rate. You can measure it every month as well as quarterly and annually.
2. Customer churn rate – CRR
What is the opposite of CRR? It is a Customer Churn Rate. When people stop taking an interest in your website, then the rate of CRR arises. Calculating the CCR could be a tricky task. For example, if someone is purchasing from your site on average once in 30 days and now he or she has stopped doing this, then you can consider it in CCR.
3. Repeat Purchase Rate – RPR
One more way to analyze customer loyalty is Repeat Purchase Rate. Loyal customers tend to buy from your store more than usual. It is an excellent way to measure performance, indeed. The simple formula to know RPR is to divide the number of customers who purchased more than once by the number of total customers.
4. Average Order Value – AOV
Average Order Value should be increasing whenever the customer purchases from your store. If you can increase the AOV among your customers, that means you can put less effort into acquiring new ones.
5. Net promoter score – NPS
Net promoter score is a simple process, where you need to ask one question to your customers. “On the scale of 1-10, how likely is it that you would recommend our brand to a friend or colleague?”
- If NPS>9, that means they are soon to be Micro-Influencer
- If NPS<6, they are not happy with the service
6. Customer Lifetime Value – CLV
The total amount of money a customer spends on your brand from the beginning to the end of a relationship is known as Customer Lifetime Value. CLV is also one of the fantastic ways to measure customer loyalty. The higher the value of CLV, the higher is your reliability.
7. Social media content – SME
You can also analyze the engagement on social media content. If you are working with micro-influencers, these numbers need to progress tremendously. One of the best ways to measure social media engagement is to compare likes and shares with the previous posts.
Parting thoughts on tips to grow micro-influencers by using the loyalty program
We hope that the points, as mentioned above, will help you to begin a successful customer loyalty strategy. The loyalty program can turn your customers into micro-influencers. Every brand admires customers who are loyal to their products.
If you are willing to implement a loyalty program in your company, feel free to get in touch with us at LoyaltyXpert.