It’s no secret that big brands invest heavily in marketing tactics to increase customer loyalty and drive acquisition. Larger companies use a variety of marketing channels to attract new customers. They spend significant amounts of resources on loyalty and reward campaigns. It’s also become increasingly common to gather valuable data and insight that they can use to shape campaigns and target customers.
What most businesses haven’t yet managed to conquer, though, is serving their customers with a personalised experience and an individual approach. That’s the secret sauce that keeps customers loyal to local small businesses.
The question is, how can you compete with the big budgets and seemingly infinite resources of big brands to increase your customer base? There are four challenges you must overcome to figure this out for your business.
The challenge of attracting new customers
The fact is, you might not have access to the marketing tools and resources that major brands do. Many local merchants rely on simple and inexpensive tactics such as shopfront advertising and word-of-mouth to increase awareness. Unfortunately, such marketing methods are quickly becoming outdated in the modern digital world. With consumers increasingly turning their attention to digital channels, you might struggle to reach new customers unless you continue to adapt and evolve.
The challenge of retaining existing customers
When it comes to loyalty programmes, most small businesses still try to use paper stamp cards to keep customers coming back. However, these often end up an inconvenience for both customers and you. Not only those methods are disconnected from the point-of-sale platforms, but they also don't offer you insights into your customers' spending habits and shopping preferences. Paper stamp cards also appear to be out of place in today's digital world.
Store loyalty cards that support digital stamps are a lot more convenient for modern customers. They also often come with apps where customers can check out promotional offers and track their points. Those digital loyalty cards make it possible for you to gain valuable insights into spending behaviours. This then makes it possible for you to target customers in a more personalised way. And, you can also use the data to inform how to evolve your business model and marketing approach.
The downside? Not all customers sign up for loyalty cards, and of those that do, not all take the time to download the app. This limits the amount of customer data that you can access and minimises your ability to retain customers that don't participate.
The challenge of staying relevant and personal
Customer loyalty is more complex than just the number of visits. As Sir Terry Leahy, the former Tesco CEO, had wisely stated, “The true source of loyalty is to create benefits for people.”
For long-term loyalty, you need to offer your customers offers that are relevant and personalised. This requires knowledge of their lifestyle and spending habits, which is accessed more easily through the data that customer loyalty programs provide.
The challenge of knowing your customer
You can often access data on customer visits and spending on your premises. But that alone doesn’t give you an insight into what customer lifestyle, needs, and behaviours are like outside of your doors. This gap limits the opportunities of offering more relevant products to them.
Having a better grasp of customer lifestyle and spending behaviour could change the game for customer personalisation. Your ability to offer customers more targeted offers and promotions could work to both increase customer acquisition and loyalty.
At OMG, we believe that SME businesses and High Street are an integral part of any local community and the backbone of the economy as a whole. We’re on a mission to offer you customer loyalty tools that you can use to grow your business and respond to the four challenges.
We created a solution for you that helps you attract new customers and retain your existing ones. With data insight, you can make informed decisions and easily offer personalised and relevant incentives that will make you stand out to your customers.
And we have made this free, with no hardware or training required.
You can join our waiting list by following the link below.