Loyalty Club

What is a customer club and why does managing a customer club increase sales?

The Customer Club is a program that offers benefits to a specific group of customers outside the company’s current customers in exchange for customer loyalty to the company (which is evident in the number of purchases).
These benefits can be provided in the form of coupons, free products, benefits from other companies, and more. A customer club encourages your customers to buy from your business. (Whether it’s a physical business or an e-commerce website)

Why is setting up a customer club useful for your business?
If we analyze the statistics on customer returns, we get a simple answer. And statistical analysis is easily possible.

Did you know that the cost of buying a new customer is 7.6 times higher than the cost of selling to an existing customer? In addition, the current customer buys more than 60% of the new customer, although this data refers to the company’s total customers. When we talk about customer club members, the information gets even better. Medium-sized businesses that manage to increase their customers’ returns by 5% benefit from 95% profit.

Is your business suitable for establishing a customer club?
When we look at the numbers, it’s clear that starting a customer club is a positive and profitable endeavor. But is every job right for starting a customer club?

There are times when creating a customer club can’t be effective, these are companies whose customers make their purchases irregularly. In such cases, the company will not be able to return enough customers, thus allowing it to reap the benefits it provides to customers and the company itself. Examples of jobs suitable for setting up a customer club are home renovation jobs and more.

Gathering basic information and forming a customer club

An important step in managing a successful customer club is the initial planning stage. It’s important to start collecting data about your current customer buying habits.
The first step is to find 20% -10% of your most profitable customer, which is 80% of your profit. If your business has implemented a CRM system, this will facilitate basic research. After creating a profile of the type of customers you are interested in, you need to create a program that fits their needs.
For example, a jewelry store found after initial research that the best customers buy a particular diamond cut, which should benefit the customer’s club. It is recommended that you use a simple, structured system of points. As soon as the customer collects a certain number of points, he will enjoy the benefits defined by you.

The simpler the system, the better the performance. You need to think about what the customer will get in return for customer loyalty to your business. A customer club that does not give real value to its customers does not make them buy again.

Note: It is recommended that you cooperate with other companies. Offer your customers a customer club that allows them to use their benefits in an integrated manner and receive benefits from other jobs. In fact, it already requires management and organization, but it will be great for your customers. Naturally, there is a clear advantage to working with companies that complement your product. For example, a car dealer joins a gas station.
The customer should be aware of the customer club and its benefits
The foundation of a customer club’s success is that its customers are aware of the customer club and its high value. For example, supermarkets and fashion chains instruct their cashiers to ask buyers if they are members of the club. The fundraisers tried to persuade the buyer to join the customer club by explaining the benefits of the club.

Use all the tools you have in your business to remind your customers that the customer club exists and is important to them. Some of the tools you can use are: the company’s website, your distribution lists, your voicemail, and more.

An accrued profit is a case in which, after a certain number of purchases of a product, the customer receives the same product for free. For example, after buying five parts in a restaurant, the sixth part is given for free.
Learn to buy habits and keep improving

One of the obvious benefits of a customer club is that, in addition to the significant value of direct profit growth, it collects large amounts of data about your best customer buying habits. This is an information gold mine that allows you to make business decisions that will yield results in the short term.

For example, you can see how supermarket chains send personal coupons to, with the most valuable group of customers, from the information gathered about their customers.