Creating deeper connections with your customers is a powerful way to increase clients’ loyalty and providing the right gifting strategy is a great opportunity to strengthen this relationship. However, the opposite can happen when done incorrectly.
Why customer loyalty matters
Many companies underestimate the power of customer loyalty. At its foundation, a company is built on the value it places on people. There is no doubt that existing customers are one of a company’s biggest assets. Without a solid structure for this relationship, the company can encounter challenges.
Have you ever wondered how much it costs to gain new customers vs retaining current ones? Studies show the value of customer loyalty:
- Acquiring new customers is five times more expensive than keeping existing ones
- Existing customers make up 60-70% of successful sales, while new customers make up only 5-20%
- A loyal customer is five times more likely to purchase again
- A 5% increase in customer retention can increase profits by 25-95%
Overall, there are endless benefits when it comes to customer loyalty.
Think about it; if clients have a positive experience with your services - they’ll return. Even better, they’ll want to tell others about their fantastic experience with your company. Effective word-of-mouth marketing helps grow your customer base.
Benefits of gifting
Now we bet you’re wondering, “how can you generate customer loyalty?” The quality of offered products and services is important to keep people coming back to buy from you again. But that’s not everything! Your clients also remember how you make them feel.
There are plenty of opportunities to send a gift: random acts of kindness, birthdays, holidays, loyalty appreciation, etc. The main benefits of gifting are:
- Gifting helps you elevate customer satisfaction
- Increases customer loyalty
- Makes events, rewards, and relationships special
- 90% of people report gifting with choice makes them feel appreciated and valued
The right and wrong way of gifting
Gifting is powerful. However, when done incorrectly it can have a negative impact. We have all experienced unexpected unwanted gifts that led to a bad experience. How often do you think about that company? Are you likely to go back? You need to make sure you’re generating real appreciation and a great customer experience.
Why does this matter? Providing meaningful gifts is important because 89% of people are more likely to remember who gave them a thoughtful gift. Evaluate the following scenarios to understand what is a good way of gifting:
- Wrong: Pick a random item at the store and hope they like it.
Sure it’s easy, but that’s not personable and it feels like you’re just checking a box. Clients can feel disrupted by unwanted gifts.
- Right: Invest in items you know they will actually love and use.
Clients will remember you while they use it. Staying top of mind with an ongoing positive experience increases customer loyalty.
Don’t look at gifting as an expense, but rather as an investment. Just as you measure ROI, you can also measure Return on Appreciation™. When you truly make an effort to gift with purpose, clients will reciprocate with customer loyalty.
Are you ready to give memorable gifts?
Start creating meaningful relationships with our Online Gifting Platform. We help you deliver personalized appreciation directly to people’s inboxes when it matters the most. Gifting with a purpose doesn't need to be complicated!
Try a demo to see how our Online Gifting Platform works.