Studies suggest that repeat customers spend 67% more than new customers. This is why repeat customers are important for every brand and can take a business to another level. Customer acquisition is much more expensive than customer retention. Most brands understand the importance of customer loyalty and repeat business today. This is why more firms now focus on customer loyalty and sales promotion programs to retain and add customers.
Though the primary goal of sales promotions is not repeat business, they can boost customer loyalty if promoted well. You only need to include your existing consumers in the new sales promotion programs. Also, you will need to align the program with the interests of your current and target customers. Let us help you understand what sales promotions mean and how these can be used to increase repeat business:
What are Sales Promotions?
Sales promotions are short-term strategies that businesses use to achieve short-term goals. The goals can be different for every enterprise. Some brands use sales promotions to boost sales, others to attract new customers, and a few also aim to drive repeat business using sales promotions.
Whatever it is, the goal of a business is to boost revenue. Revenue increases with increasing sales, and sales increase with a growing customer base. A brand with a loyal customer base can be more profitable. This is why customer loyalty is critical to the success of a brand.
Sales Promotion Techniques to Drive Repeat Business
You can find a lot of sales promotion strategies other businesses have used for boosting sales. However, if you aim to drive repeat business, here are the best sales promotion techniques you must implement:
Offer Free Samples/Product Testing
The word ‘free’ works magically. Consumers don’t want to spend money on a product without knowing whether it works for them or not. This is why offering free samples or allowing them to test your products can help. If your business is online, you can run bundle offers and pair a free sample of the new product with an existing product.
Let your target audience know about your free sample offering and welcome them to sign up on your website. This process will get you the valuable data of your target audience, and they will get to know more about your brand.
Gamification refers to using gaming techniques in non-gaming contexts. Gamifying your sales promotion program makes it more exciting for your customers to participate in your contests and explore your offers. You can entice customers to spend more with your brand with weekly or monthly spend-based offers.
Having a leaderboard for top spenders encourages your customers to spend more to get on the top of the leaderboard. You can make the campaign more exciting with prizes for the highest-spending customers of the month. Leading rewards companies like RewardPort can help you gamify your sales promotion campaigns.
Build Loyalty Programs
A loyalty program is a reward-based program that encourages customers to return to a particular brand for their next purchase. You can run points or cashback-based loyalty programs for your business. Make sure that you are offering rewards that are valuable for your customers. You can do this by providing redemption options against the reward points they earn.
The rewards should be exciting enough to motivate your customers to spend more on your brand. The idea behind loyalty programs is to make customers feel like they are receiving something in return for their purchase. If they love your reward, they will want to earn more of it and will come back to purchase your products again.
Tier-Based Reward Programs
Tier-based reward programs are among the most effective sales promotion strategies to retain customers. You can design a tier-based reward program, in which the more a customer spends, the higher tier they get promoted to.
A higher tier means better rewards and benefits. Whenever a customer makes a purchase, notify them about how many more purchases they need to enter the next tier. This motivates them to stay loyal to your brand and buy more often to get more benefits.
Offer Discount Coupons for Future Use
After every purchase, provide your customers with a discount coupon for the next purchase. This increases the likelihood of your customers returning for the discount. Also, keeping the coupon valid only for a limited time increases the chances of a repeat sale.
Discount coupons are the most effective strategies to retain customers and increase repeat business.
Build The Best Sales Promotion Strategy for Your Business
A sales promotion strategy should not only focus on driving sales but also on retaining customers. Repeat business can take any brand to higher levels in a short time. You only need to ensure that your sales promotion strategies work well for your offerings and engage your customers. Reward companies like RewardPort can help you build the most effective sales promotions for your business.