As a mechanic or service-based business owner, you know that keeping your customers coming back is essential for success. If you’re wondering how to do that in an automatic, easy-to-implement way that doesn’t rely solely on sales or discounts or soak up all your time – look no further than a bit of loyalty marketing!
In this guide, we'll explain what loyalty marketing is, why it's beneficial for service-based businesses, and how you can make it work for you.
1. What is the point of loyalty marketing?
Loyalty marketing is a strategy that focuses on retaining customers by rewarding them for their loyalty. The goal is to create a sense of attachment between your business and your customers, which can lead to repeat business and positive word-of-mouth referrals.
2. How can it be beneficial for service-based businesses? e.g. How can it save business owners time and money in the long-term?
It's much more cost-effective to retain existing customers than it is to attract new ones.
Loyalty marketing can save you time and money in the long-term by reducing your customer acquisition costs. Plus, the most loyal of customers are the ones who are the most likely to refer your business to their friends and family. Boom!
3. How do you figure out who is a loyal customer and how do you decide the best way to retain them?
The best way to figure out who a loyal customer is and what they value the most is by tracking their behaviour! How often do they visit you? How much money do they spend? How long have they been a customer? What kinds of questions do they ask?!
Once you have that information, you can decide on the best way to retain them. For example, if you notice that a customer always gets an oil change every three months, you could offer them a discount on their fifth oil change.
Overtime, you’ll start to see patterns emerge across your database, providing you with a great foundation for a unique loyalty program that your customers will find heaps of value in.
A loyalty or points programme can also be a super effective way to give customers a reason to keep coming back. When customers know they can earn rewards or points towards free services, they are more likely to return. And this isn’t rocket science – put simply, it’s satisfying as.
Think about how good you feel when you get offered $10 off because you’ve accumulated enough points somewhere! So go on – give them those warm fuzzies and further strengthen your customers’ loyalty to your business.
4. How do you create systems to manage loyalty programmes?
To create a system to manage your loyalty programme, you'll need to choose a platform that can help you track customer behavior and rewards. There are heeeaps of options out there – from physical punch card systems (we can help with those byyy the way!) – to complex software platforms.
Once you've chosen a system, train your team on how to use it and communicate the benefits of the programme to your customers in person, over email, or via socials.
5. Actionable Analytics
Finally, make sure to track your programme's success with actionable analytics. Whether it’s a simple spreadsheet or a survey with your customers twice a year – look at how many customers are participating, how often they are redeeming rewards, and how much revenue the programme you’ve created is generating.
Use this information to tweak your programme to make it even more effective. You’ve got this!
By implementing a loyalty programme, you can create a strong sense of trust between your business and your customers – and ultimately increase your bottom line. So… tell us – how will you reward your most loyal customers?!
