Business

Social Media offers cost effective Customer Loyalty Programs

The cost of a personalized loyalty system can be prohibitive for small to medium sized companies, because of this they tend to attached themselves to larger, more encompassing customer loyalty systems. The actual benefits of these larger systems to these smaller companies, re: cost vs profit, is usually very small.

This is where Social Media has made a dramatic impact on the marketing playing field.

Using Social media as your loyalty based system is inexpensive and offers the same, if not more, benefits to the small to medium company, where the cost-to-sale percentage creates a much bigger impact on bottom-line profits.

Loyalty based marketing programs are an effective method to retaining your customer base. Purchase cycle patterns define not only the specific customer loyalty program but, the importance of the loyalty program to the overall marketing plan.

For long purchase patterns, three to five years; such as cycles for white goods, motor cars, homes, insurance, etc., you can practically treat repeat customers as first time buyers, with simple and defined benefits. Much like how insurance companies use no-claim bonuses to promote repeat purchases.

Customers for products consumed on a regular basis (from bi-annually to weekly); especially for parity based competitive items, add-on value to the actual purchase is a critical benefit to the consumers' purchase decision. This usually means a loyalty based marketing promotion.

The most cost effective Loyalty based systems is a Facebook Fan Page. Customers can join, for free, and in a format that they are very used to. Companies can entice customers to join with a simple discount or give-away. To start your Loyalty Program, based on your customer purchase pattern, offer discounts/add-on offers/BOGOs, only through your Fan Page. Once customers get accustomed to this, you can expand the offers to include Fan only end-of-month specials, new stock introductory offers and seasonal based offers.

Plus an added benefit to a Facebook Fan Page is its targeted advertising system which allows you access to your Fans "friends database" resulting in increased Fans to your page. So your advertising expense is controlled and you have access to 'like-minded' potential customers for major marketing promotions, such as new stock arriving, big sale events. Plus the Facebook Fan Page offers a great advertising channel for those limited inventory items that you need to clear for new stock but are too small in number for a major advertising promotion.

This is just a small area where Social Media marketing can increase your sales at a cost that will not impact negatively on your bottom line. For more information on how Social Media can positively affect your bottom line contact AntRod Consultants at consultants@antrod.biz

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