Did you know that raising your customer retention rate by 5% can triple your profits? That is a remarkable statistic demonstrating the true power of your repair shop software loyalty program.
On the other hand, repair businesses appear to be more focused on attracting new consumers than looking after existing ones. Of course, it’s natural to want to increase your customer list.
But how do you keep the people who are more likely to buy from you again?
A simple solution is to make a customer loyalty program in your repair shop software to reward repeat customers.
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A program that provides customer loyalty perks is a fantastic method to say thank you. Obviously, it’s beneficial to your customers. But what are the advantages of loyalty programs for a repair business like yours?
The fact is that there are several potential benefits, both financial and non-financial in nature.
We’ll look at the 5 key loyalty program features here. And how creating your own loyalty program will assist you in retaining customers.
Why Does Your Repair Shop Need A Customer Loyalty Program?
Let’s discuss the most critical benefits of a customer loyalty program one by one.
1. Stop Competing On Price With Competitors
It’s now too simple for customers to compare hundreds of prices in a few clicks. Suppose they’re solely concerned about the items or services you offer rather than your repair store. In that case, you’ll be racing to the bottom on pricing. And it will be the bigger repair shops that succeed.
Customer loyalty systems are beneficial since they can help prevent you from relying solely on price competition. It allows you to distinguish your repair business and brand by tapping into your consumers’ feelings. Thus providing a significantly more personalized customer experience.
Let’s dig deeper into this.
When a consumer makes a purchase, their decision is often very emotional. Do you offer items that people buy for pleasure rather than necessity? If that’s the case, you must appeal to their emotions.
The importance of customer loyalty is undeniable. It’s a very successful approach to surprise and please customers who shop with you. Hence, rewarding them for something that previously went unnoticed.
Every time you thank a client, you appeal to their emotions. As a result of doing so, you’ll create a bond. They view you as more than simply a repair shop when this happens. It grows their loyalty, causing them to make repeat purchases that increase your revenue.
Fun Fact: Emotional consumers are more likely to recommend a product or service to their peers, with 81% of them willing to spend more and promote it.
2. Retain Existing Customers
Loyal consumers spend 67% more than those who are not. That’s a figure you can’t afford to overlook. But, at the same time, gaining customers may cost you at least five times as much as keeping current ones. Apply this logic to your business, and you’ll see how beneficial it can be.
Customers who are part of a customer loyalty program can provide more value to your repair business, even in harsh economic conditions.
So, retention is one of the most cost-effective methods to grow your business. One of the primary advantages of loyalty programs is that you may do more to keep clients returning and spending more money.
As you begin to convert current customers into loyal ones, the significance of customer loyalty management becomes evident.
3. Increase Customer Lifetime Value
The net benefit attributed to your entire relationship with a consumer is the customer lifetime value (CLV). It measures how beneficial a customer is now and how much the long-term connection is worth in the future.
Why is this important?
According to statistics, you’ll be able to see the majority of this 365-day “value” within just 30 days. By three months, two-thirds of it has been realized, peaking at 79%.
You may calculate the CLV for each of your customers through reports in your repair shop software. With all of the data provided, you can develop effective retention strategies based on it.
After all, the information you have access to is a pile of bricks that needs to be constructed. One of the advantages of this for repair businesses is being able to make sense of this data.
Simply said, you can figure out how your consumers go about making purchases. And provide them with loyalty points at each stage of the journey to increase CLV and convert more people.
4. Build Personal Relationships
The sense of belonging and your customer’s loyalty to your store demonstrate how much you value them. You can do this by developing genuine connections with your customers. Your customers are unique, so treat them as individuals.
Data is crucial.
The loyalty report in your repair shop software, can help you gain crucial consumer information and insights. For instance, you can view the number of customers, total points rewarded, total points redeemed, and total points refunded.
When it comes to loyalty programs, understanding who buys from you is critical. That’s because it allows you to conveniently meet their demands.
Likewise, repair shops frequently just categorize consumers into one or two categories. Customers may feel neglected or undervalued as a result of this.
Consequently a customer is more than a collection of demographic types. And we can also see that customers are increasingly interested in forming a genuine connection with repair shops they buy from.
After all, we know that if a loyalty program develops an ongoing relationship, 66% of individuals will join it.
Our loyalty program management solutions offer you the ability to deliver a one-of-a-kind level of customer support. It will allow your customers to feel acknowledged and cared for rather than invisible. You’ll begin to see the long-term advantages of their loyalty to you once you start using it.
5. Create brand advocates
Your most important customers aren’t just those who pay you. Rather it’s the customers who refer you. And such customers are known as “brand advocates.” They are the ones who’ll recommend your business to their friends, relatives, or – for those on social media – their followers.
You can also develop a network of advocates by running a loyalty program. Because, 86% of customers spread the news about the repair shop they stick with. So again, it’s the power of advocacy in action.
You may demonstrate how much you value your current customers by using a two-way referral program. Give your customer a chance to earn money if they’re referred you to someone. Both referral and loyalty program are designed to attract new consumers while retaining current ones.
A mutually beneficial situation!
How To Start A Customer Loyalty Program?
With all of the advantages of loyalty programs in your repair shop software just waiting to be explored, why not start one for your company now? It should not be complicated or take up a lot of time.
The first step should always be to figure out what your loyalty program will look like. Will it fulfill a long-term business need? How can you make sure your brand identity is compatible? Do you know what percentage of loyalty points you want in a loyalty program?
You’ll be able to start by setting up the program. Then, you can use our platform to create a one-of-a-kind program with the aid of our helpful experts. And you may test how this might work for you right now by scheduling a consultation with one of our specialists.
