Did you know that it costs five times as much to attract a new customer as it does to keep an existing one? And did you know that existing customers are 50% more likely to try out new products and spend 31% more when compared to new customers?
It is even proven that the probability of selling to an existing customer is 60–70%, while the probability of selling to a new customer is 5–20%. Finally, according to research by Invesp, increasing customer retention rates by 5% increases profits from 25–75%.
It may come as a surprise then that only 18% of companies focus on customer retention as opposed to the 44% that keep their attention directed on customer acquisition. It should be clear by now that you need to focus on nurturing your loyal customers for increased profits in the long term. There are already many companies that invest their marketing budgets in customer loyalty programs. However, this doesn’t seem to be the perfect strategy either: according to KPMG, only 37% of consumers believe that those programs are effective in earning their favor. Additionally, 95% of the Brits who participated in this research, said that companies need to find innovative ways to reward their loyalty.
Using innovative ways to reward fans’ loyalty is key nowadays. So, we're going to share 5 ways to reward your loyal customers, to help you build an engaged fanbase.
1. Own their data
First and ideally, you are the owner of your loyal customers’ data instead of third parties - like today's social media platforms - owning this valuable information and making you pay to reach them. This data is incredibly valuable, and you can use this in your marketing efforts towards loyal customers. Imagine having a database of your fans' email addresses and phone numbers, which you can use to directly communicate with your loyal fans. People will feel that they are receiving additional, special treatment if you reach them this way. Give Fangage a try to start collecting your fans' data and directly send out emails and text messages to all your fans.
2. Exclusive sales
As mentioned before, your fans love being treated in a special way. Offering them exclusive products or services is an excellent way of doing this. According to research by Harvard Business Review, many companies treat all of their customers equally, offering them products of equal value regardless of how much they spend or how long they have been loyal customers.
However, in today’s rapidly changing markets, this strategy is becoming outdated as every customer has a different relationship with you. You don’t want to waste your resources on offering average products to your loyal customer base and decrease their satisfaction. On the other hand, you don’t want to waste your resources by offering products that only your loyal customers would love to your less profitable customers.
A great way of making a clear distinction in your offerings towards loyal fans VS. your average follower is to include your coolest and newest products, services, or content as a part of an exclusive content subscription. Successful content creators are already making millions with content subscriptions on Fangage or OnlyFans by offering exclusive images, videos, audio, or other benefits to their fans. Curious how much extra monthly income you could earn from your following with content subscriptions? Calculate how much you can earn with the calculator on our homepage.
3. Exclusive pricing
Another way of using exclusive sales to give loyal fans exclusive early access to purchase a particular product.
Using tailored pricing for your products’ sales can also be a great way of rewarding your loyal customers. You can offer discounts to high-spending or returning customers for a sense of exclusivity, which is valued, especially by loyal customers.
4. Exclusive experiences
All of the ‘exclusivity’-based strategies listed above focus on offering value, but one of the most critical factors for customers to become loyal to your company is trust. Trust can be built by offering exclusive experiences to those who value this the most, namely your true fans. For example, this can be done by sharing exclusive content or by organizing exclusive (online) events for your closest fans. This way, your loyal customers will feel even more recognized by and associated with your brand, which raises their levels of trust concerning your company and will ensure you of more loyal customers in the long term.
5. Exclusive content
Although we named it as an exclusive experience, exclusive content deserves a mention on its own on this list. Exclusive content works so well because people are rather IN the group than OUT of it, especially when it’s about a brand they are extremely interested in or a big fan of. A few examples of exclusive content are:
- Digital content like videos, images, audio, or other benefits
- Offers and discounts
- (Early) access to communities or events
Exclusive content can be really profitable when done right. Give Fangage a try and start selling exclusive content for either a one-time payment or as part of the increasingly popular content subscription model.
Rewarding your fans’ behavior with these rewards seems like a lot of work, but it will all be worth it in the long-term as you build a much more trusting, and therewith profitable relationship. You need to nurture the relationships you have with your closest fans and reward them for being loyal. This way, you will end up with more loyal fans, allowing for a much more sustainable income from them in the long term.
Start offering rewards to your closest fans easily from your own website with Fangage, and earn more money from your fanbase.