Recently, The Wall Street Journal published an article, Macy’s Faces a Test of Loyalty, which outlined the financial statistics of exactly how many of their customers account for their overall sales. This rarely disclosed information stated that only 9% of customers equalled 46% of sales which is an outstanding figure once you know that Macy’s revenues amount to somewhere in the area of $25 billion.
46% of $25 billion is $11.5 billion – not a lot, considering. With this in mind, the store has considered a plan to encourage their customers to remain loyal by introducing a program that will begin in their next quarter. Will this be enough?
It’s not hard to work out that customers who return to the same service or retailer will do so for a reason. Usually, this is less to do with what that retailer has on offer and more to do with the bond that they feel has been created between themselves and the company.
But can this sense of customer service and satisfaction be achieved with a loyalty program? While it’s true that a loyalty scheme will boost your sales in the short-term, it is a human to human connection that allows for a long-term relationship between you and your customer.
Customers enjoy knowing that the person they’ve chosen to buy from/work with knows their name, their interests and whether or not they’d be interested in a certain product or service that the store has on offer. A loyalty scheme may be able to achieve this in some way, but the personal connection still won’t be there.
Whether you already have one in place or you’re thinking about establishing a loyalty program, it’s important that you hire the right staff who can build great relationships with your customers.
Not only will this show your customers that they are valued, but it can help you to gain information about your demographic. Treat your loyal customers better by creating unique marketing efforts, communicating with them regularly and offering something that’s unique to them - perhaps on their birthday?
Trust us, do this and customers are far more likely to consider you when they next want whatever it is that you’re selling.