The retail landscape of today continues to recover from a post-pandemic world, but many of the changes we’ve seen in consumer behavior over the last several years will impact the way businesses function for the foreseeable future.
Competition is the name of the game for many industries – including car washing! After an incredible hyper-growth spurred by the pandemic, markets are saturated, and we hear you: it’s getting more and more difficult to distinguish yourself from your opponent(s). So how do you continue to grow customer engagement and sales with even less resources and investment available than before?
A focus on customer retention and loyalty.
The Influence of Loyalty Programs is Higher Than Ever.
According to The Bond Loyalty Report 2024, “the influence of Loyalty Programs is higher than ever” – and we’d be inclined to agree. 85% of those surveyed in The Bond’s report stated that the existence of loyalty programs make them more likely to continue doing business with a brand. Per the report, members also claim to be more active than in previous years – the average total number of memberships per person surveyed was 19. So consumers are using loyalty programs, sure – but why?
Let’s think for a moment about what’s happened to affect the customer relationship in recent years. We’ve all experienced fear of recession, price hikes, and further woes caused by turbulent social and economic climates. After years of complexity, uncertainty, and separation, many people are placing connection, simplicity, and overall satisfaction high on their list of priorities – even when shopping.
The easiest way to cover all those bases is by establishing a loyalty program that rewards your customers for engaging with and supporting your business. Loyalty programs provide clear value to both new and repeat shoppers alike, and can often mean the difference between wooing a customer or losing them to a competitor. And as we’ve covered (and we’ll say it again!) – competition is fierce.
What the Statistics Say
The statistics in The Bond Loyalty Report 2024 also show that having a good loyalty program in places pays off well beyond current customer retention. Here’s how:
- The survey reports that 79% of its participants say they are more likely to recommend brands with good programs. This means nearly 80% of your customers would be open to referring their friends to your wash for FREE! Word-of-mouth marketing is one of the most effective ways to build your business, and having a loyalty program that rewards consumers in place is one surefire way to get your customers talking.
- The same survey reports that 73% of participants say they modify the amount they are spending to maximize program benefits. That’s called upselling – and it works! Your customers will likely spend extra money at your wash if it gets them even one small benefit. (Have you ever spent more money for free shipping? Or bought something extra just to get some Kohl’s Cash for your next visit? You know you have.) You’re leaving profit behind by not incentivizing purchases!
For years, loyalty programs have – and continue to – contribute positively to customer recruitment, retention, and spend. It’s time for you to build yours today!
So, let’s say you want to get started. What does a good loyalty program look like? How do you begin to build one? We’ll lay out the basics next week, in The Latest on Consumer Loyalty: Part 2. Stay tuned!