You want your business to fly—who wouldn’t? If it’s your business, of course, you would want people to notice and like it. So, you do whatever you can to spread brand awareness and get new cucstomers. Although it is important for you to focus on getting new customers, your existing customers are just as important.
According to studies, the cost of acquiring new customers is 5% higher than keeping the current ones. So, if your customers are not making their purchase as much as you want them to be, it’s time you bring out a marketing strategy that has been proven true by established brands and businesses— The VIP Treatment.
What is the VIP Treatment?
What is the VIP Treatment? – How The “VIP” Treatment Can Help Get You Repeat Sales
VIP stands for Very Important Person, where you give special privileges to your loyal customers in exchange for something that will benefit your business.
You can choose to offer your existing customers to become a VIP by giving them a few percent discounts from your products and services. Once they have signed up for your VIP program, you can then send them a card which they can use to get discounts and freebies from your store. Other than freebies you can also opt to have a points system, where your VIP customers can win free merchandise depending on their points. Grocery stores worldwide use this tactic to get more people to buy from them.
This setup is a win-win situation for you and your customer because you get to build better relationships with them and encourage them to buy more from you. And your customers benefit from this by getting discounts and freebies. Stats show that 66% of reward cards or VIP card holders buy from the same store knowing they will get rewards, and 14% buy more from a store because they get rewards.
With the special benefits, your customers can get their loyalty and trust to your store also increases. Reports from Expedia Affiliate Network show that there is a 61% customer loyalty increase from using discounts, coupons and membership cards tactics. And that 97% of customers are always looking for deals and discounts. 90% of customers who get coupons and discounts from VIP cards use them regularly.
How to Implement A VIP Treatment System
You can choose to use a point system so whenever your customer is able to collect a certain amount of points; you can offer him/her the VIP privileges.
These are some of the VIP Privileges you can put give to your customers.
VIP Checkout Lane
If your business is a physical store, you can create a special lane just for your VIP customers. With this VIP Checkout lane, they can bypass the long queues and pay for their purchases immediately. This is a very attractive offer especially if you are running a grocery store or any other type of business where long lines are required.
Waiting for a long time is a cause for customers to walk out of your store. And offering a nice way to avoid the hassle will entice your customers to avail of your VIP/loyalty system. Having a fast checkout lane will also encourage them to buy more from your shop because of the fast checkout system they can use by being VIPs.
Point System
The most common loyalty system that stores use, and for a good reason. The point system works wonders for your shop. Nothing drives a person’s mind more than getting rewards and discounts; studies show that 41% of customers buy from a store to get rewards. 37.5% of this 41% do it to get rewards while 3.6% do it for the sake of earning something. And 57.4 % of buyers use the point system to save money.
Motivating a customer to buy from you both internally and externally are powerful tools to generate repeat sales. The internal factor of earning rewards is you giving them the feeling of achieving something. A customer will gain gratification just from the idea that he or she accumulated 1000 points. And this gratifying feeling is magnified by the rewards you have set out for them. Let’s say your reward system goes like this: earn 500 points you get a gift certificate worth $100, earn 1000 points and you get $200 or a free dinner for four at Marina Bay.
You can get your customers to buy more from your store, and at the same time get them to buy more often. Your store’s point system will encourage more repeat sales because they are trying to reach certain reward points to earn a reward. And you a wide array of possible rewards to choose from, the choice is yours to make.
Special Events
Another great tactic is giving out freebies during special occasions, like Christmas or Chinese New Year. You can offer the Buy 1 Take 1” tactic for your VIP customers, or free shipping. You can even opt to have a raffle draw for your VIP customers and give them the chance to win once in a lifetime events like “Trip for Two” or win a car.
Of course, this is only limited to your VIP customers; you can even set this up like a tier system where your VIP system has a tier status. This status increases depending on the number of times they buy from your shop. This will drive them to buy from your store or avail of your service more often because they earn something out of it.
You can even make a special events reward system where you give your customers a free discount for shopping in your store or buying something from you on their birthday. This will make them feel closer to you since you are caring enough to give them special treatment on their special day. And stats show that 65% of people ages 37 to 50 shop in places where there is a loyalty system in place. A whopping 75% of customers check a stores loyalty and VIP systems before they make a purchase.
These are just some of the privileges you can give to your customers. You can think of other ways to make your customers feel valued while at the same time increase your sales and revenue. The sky is your limit, especially if you work and plan it out with your marketing team.
Benefits of the VIP Treatment
More Repeat Sales – having a VIP system entices your customers to buy more and more from your store. Your rewards system and discounts give your customers the deals and saving tactics they are looking for. 94% of people ages 22 to 36 make use coupons, discounts and reward systems, this data alone can show you the massive repeat sale potential you can sell to.
Increase Customer Loyalty – giving special treatment to your customers who have continued to patronise your store will make them feel appreciated. By showing them that you value their loyalty, you will, in turn, earn more of their trust. Everyone wants to be pampered, and if you can show to your customers than you pamper them, they will give you their devotion in return.
Solid Referrals – loyal customers are immediate brand ambassadors, add this two together, and you have a referral program built from scratch. Remember that when your customers feel loved they will broadcast it to the whole world. The biggest and most trusted brands did not start their business empire with expensive ads, they built their empire from word of mouth.
Attract New Customers – as stated in the reports earlier 79% of customers today look into a business’s rewards and loyalty system before they buy from it. So, if you have a very good loyalty and the rewards system you can expect to get new customers, who are drawn in by your deals. Combine this solid VIP system with personal referrals and testimonials from your old customers, and you end up with a lethal promotion for your business.
Types of Loyal Customers
According to research conducted by (DMA) Direct Marketing Association, there are 4 types of loyal customers. Giving VIP Privileges to your loyal customers will make them feel important which is the result of them spending more.
43% of adults are Active Loyals; these are customers who stay with you throughout the year, with or without special events. Keep a record of their basket data—what do they usually buy? What service do they usually choose? And give them discount coupons depending on what they usually buy. This will increase their trust in your business, not only that; it will encourage them to buy more.
23% are Habitual Shoppers. They do not buy as much as those who are actively shopping, but they linger around during your shops normal routine, and during special events. You want to capture their attention whenever they’re looking for bargains.
Remember, these customers make their purchase with you from time to time. Try using a CRM Singapore Software in analysing their behaviour, give them promotional offers around their usual time for shopping.
9% are Situational Shoppers, the age range for these loyals are 16-24% years old. These individuals are most likely not to buy that much since they do not have enough finance to do so. Expect them to show up and make their purchase during special events. You can use the Point System to encourage these individuals to purchase more.
27% are the Active Undecided; these loyals usually are not loyal to one brand with an age range of 46-64 years old. These customers want to be loyal to one brand and are in the process of looking for a brand they can be actively loyal with.
What Tools Can You Use?
You can use a Marketing Automation System to generate web form where people sign up and even tag people as VIP members. Which saves you some time whenever you send emails to your VIPs and give them their VIP Cards.
A Customer Relationship Management System can also be used to analyse your VIP customers shopping behaviour, and personalise discounts and offers according to what they’re usually looking up for.
Conclusion:
As the owner, it is important that you recognise the loyal customers, who have stayed with you in your business venture. Afterall 80% of your revenue comes from repeat sales from your current customers. Think of your VIP system as a simple ‘Thank You Gift’ for your loyal customers which will definitely encourage them to buy more and feel appreciated. Now and ask yourself, “How are you going to implement this VIP Treatment in your business?”
