Why should your company start a customer club?
- Investing in customer loyalty has never been more important – much in the outside world means that companies focus more on keeping their existing customers instead of all the focus on acquiring new ones. According to Antavos (*) new report from January 2023, it is 4.47 X more profitable to keep a customer you already have compared to acquiring a new one. This means that investments in how you communicate with your existing customers will be more profitable in the short and long term.
- The new rules for how third-party cookies to work have made it more difficult to advertise as successfully as before. Rules at Apple for IOS affect how data is saved, tracked, and shared, and GDPR as legislation also regulates how we may keep and use personal data to communicate commercially. All these changes in the field affect how well we succeed with campaigns and communication.
- Many brands also see poorer ROI on their advertising and need help finding the right target groups and analyzing the results of their campaigns. More people are using AD blockers to a greater extent, making it harder for brands to reach specific target groups.
- Investing in your existing customers and making sure they stay is therefore increasingly important in the competition for customers – and then being able to offer your customers a customer club can be exactly what you need.
There are different types of customer clubs.
Today we can see several different types of loyalty concepts on the market. There is no “one size fits all,” but based on the existing objectives and how the customer needs to look, the concept needs to be adapted to give the best possible effect. The most common types of ideas are these five, which you probably recognize from the customer clubs you belong to:
Traditional customer club
The traditional customer club often has fixed benefits on products & services and works significantly with promotional offers.
Partner program
A partner program means that several brands are part of the same program to contribute to increasing the value and benefits for customers or members.
Points program
In a points program, customers are rewarded with points they can use for future purchases. Instead of discounts, customers receive, for example, one bonus point per kroner they spend, which they can redeem on their next purchase.
Level program
In a level program, customers are categorized based on different levels based on purchases, where each group provides other benefits and an increasing status. The standard form is Gold, Silver, and Bronze.
Subscription
This is a relatively new type of customer club that is becoming increasingly common, where companies offer customers to pay for a subscription that gives access to exclusive benefits. Benefits can include getting higher bonus points on purchases, free shipping, or access to unique content.
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