An SEO agency was the second company I ever founded. I had no intention of starting an SEO agency… I just happened across it. Let me give you a little history on how I came onto SEO and how I started an SEO agency and earned millions from it…
I established my first website as an employment board. I was attempting to rank the website for phrases such as “job search” and “tech jobs.” I engaged a couple of SEO agencies to assist me, but none of them delivered any results. After losing tens of thousands of dollars, I had no option except to teach myself how to optimize for search engines… on my own.
I began to understand how an SEO agency works after reading sites such as Search Engine Watch and SEO books. By chatting to folks like Patrick Gavin on a weekly basis, I was able to make on-page improvements to my own site and learn how to develop connections.
Eventually, I began to rank well on Google for job-related phrases, but the company collapsed due to these factors.
When my first business failed, I resolved to give up entrepreneurship, get a college education, and find work after graduation. I began taking college courses while still in high school to get a jump start on things.
Speech 101 was my very first college course. The lecturer requested that we deliver three talks on any subject of our choosing. One of the subjects I selected was SEO… “How search engines operate” was the title.
A sales representative from Elpac Electronics was one of the males in the room during my address. After my lecture, he approached me and informed me that the organization he worked for was seeking an SEO specialist. He referred me to the company’s marketing manager, and I was recruited as a contractor for $3,500 a month.
After a few months of working with Elpac, their Google rankings for phrases like “power supply” went up to number one. They were so pleased that they referred me to other businesses they knew about. I was earning about $20,000 per month from SEO consultancy within months.
That’s when I decided to create an SEO agency, and here’s how I grew it to seven figures:
Referrals provide the greatest clients.
This should go without saying… As an SEO agency, the greatest clients will come from prior customers, friends, or even family members. You have a very good probability of completing a transaction if someone suggests you.
However, if you treat that customer badly, not only will they stop paying you, but you’ll discover that the number of recommendations you get on a regular basis will gradually decrease.
As a result, you must maintain a good reputation and be renowned for looking after your customers even when it doesn’t seem necessary. You will get new customers via recommendations in the long term if you do this.
Referrals were my biggest source of income when I initially established the firm, but as I discovered how to get consumers via marketing, it became our fourth most popular channel.
You can’t depend just on referrals I used to rely on word of mouth for most of my business. If you can supply the service, building a six-figure SEO agency is simple. However, turning it into a seven-figure firm is really difficult.
I’ve had this mentality from the beginning since I’ve been burned by other SEO agencies. They stole all of my money and gave me nothing in exchange. As a consequence, I only took on customers for whom I could provide results… However, I never articulated this to prospective customers in a manner that they could understand.
I began by calculating how much additional traffic I could drive to the businesses. I’d use the multiplier from this table to multiply their existing ranks. So, if they were presently ranked #6 for a term that brought them 1,000 visits per month and I felt I could improve their ranking to #1, I would estimate that I could bring them an additional 9,400 visitors.
I’d then take their current conversion rate, say 2%, and their average value per transaction, say $100, and show them that 9,400 more visits might generate $18,800 in extra income each month. I’d then repeat the process for each of their keywords, estimating how much more money I might generate every month. Click here for more about Avoiding these mistakes when looking for an SEO agency.
You may make it easier for prospective customers to choose you by showing them how much more money you can earn them vs how much you charge. The only concern they have is whether you will be able to provide the outcomes. To counteract this, you might offer testimonials and case studies to demonstrate your previous achievements.
You should ideally utilize extensive case studies that indicate how much money you have produced for other businesses as well as what you did to attain those outcomes. You should also highlight all of the major companies with whom you have collaborated, as this establishes your reputation.
During this process, I also discovered that, despite the fact that the bulk of our clients were mid-sized firms, they wanted to see all of the giant Fortune 500 companies we dealt with, despite the fact that they were nowhere near that scale.
When we showed our prospective customers all of the small and medium companies we worked with instead of simply showing them the major brands we dealt with, our conversion rate fell by almost half.
We began working with as many huge companies as possible after learning this, even if the large brand was unwilling to spend money on us… We were even ready to take a loss or labor for nothing.
Boost your company’s growth
You will lose money on company growth in the near term. However, you’ll be able to make it up in the end. Being the outsourced arm of larger agencies is the easiest method to raise your income.
Look for ad agencies to collaborate with as an SEO agency, since there are many ad agencies that are much larger than SEO agencies. Feel free to contact them on the phone and give free online assistance. They’ll drive a lot of customers to you if you perform well.
It’s a time-consuming procedure, but it’s effective. We used to do this and obtain a continuous stream of leads from advertising firms. You just must be ready to lose money upfront since you will be doing their SEO for free in the near term. Visit https://dictionary.cambridge.org/example/english/time-consuming-process to read about Examples of time-consuming processes.
When negotiating with an SEO agency, tell them your minimum pricing is six figures per year, and they should have no trouble securing you sign contracts. They’ll most likely attempt to white label your service, which you should accept since they’ll be bringing in income and taking care of a lot of the legwork by communicating with your customers on your behalf.
We have first-time home buyers agencies, just as we have first-time house purchasers. For a rookie, it may be exhilarating to want to do everything for everyone. Even if you are able to, it is challenging.
According to statistics, the most successful Sydney buying agencies have found their unique niche. And once they did, they didn’t give up until they were successful. One of the main advantages of having a specialization is being able to pinpoint your potential client’s characteristics. Furthermore, having a location limits your services to a certain sort of customer, whether a buyer or a vendor.
A niche may also be defined as a certain market area or property type. A condo or even a commercial unit are some of the alternatives. As a result, certain areas of specialization or niche definitions do better than others. Some Sydney buying agencies, on the other hand, had better success in certain areas than when they were everywhere. If you really appreciate your work, you should concentrate your efforts on one area.
How do you decide what kind of property to deal with?
This is the stage at which you choose your area of specialty. Selling business buildings, commercial property specialty, and selling family residential are some choices. For example, you might specialize in selling property for rural regions or choose farms or ranches as your Niche.
Concentrating on a certain geographical region
Some purchasing agencies in Sydney have found refuge in just one subdivision, which has turned into a highly profitable purchase. Such a subdivision would have to be part of a somewhat big division. Concentrating on a specific geographic region, for example, might help you focus your efforts and resources on the ‘farming’ process. With your for-sale signs, you may create a reputation by obtaining a lot of transactions in that region.
People in that region may come to see you as a local expert very quickly. Simultaneously, you appear more often on the properties for sale in that region, and you write a beautiful caption. You might also broaden your reach to include two of the big towns in your area. With several small villages inside that rural region, this crossing is easier.
Furthermore, certain geographic locations may provide other sub-niches in addition to the one you’ve picked. Out of the numerous niche selections, certain niches, such as baby boomers, may have been more popular than others. Other specialty specialists, on the other hand, may concentrate on millennials who are just beginning their home investing adventure. You can even turn a core specialty into a secondary specialization if you dig deep enough.
Choosing a certain sort of customer
A niche is created when a buyers agency chooses to deal with just one sort of customer. Working on exclusive property listings and just particular sorts of sellers is a common method. Not all Sydney buyers agencies, however, are on board with this strategy. For increased efficiency, you may integrate the two stages of operations into one central office.
You may carve yourself a niche if you find that dealing with sellers is more enjoyable than working with buyers. As a consequence, your favored alternative may provide greater results. You also don’t have to restrict the options available in this niche since there are so many. Also, if you are a people person, you can consider concentrating on first-time buyers. Finally, you will just share their feelings.
Specializing in exclusive high-end homes
You may choose to specialize in just high-end homes, just as you can concentrate on only one property category. However, you may be able to accomplish so just after establishing a traditional reputation in the marketplace. This choice might also be influenced by a strong marketing plan that involves a prominent presence in the neighborhood. And before they can entrust you with their properties, the owners must be confident that you can meet their exact requirements.
Property Management is my specialty.
Client projects, whether short or long-term, are another way for a buyers agency to earn a livelihood. People looking for short-term rentals, such as resorts or vacation spots, are one example. Similarly, the Sydney Buyers Agency could be able to obtain certain offices by collaborating with other stakeholders as a group.
For example, a buyers agency in Sydney employs the experience of a vacation home buyers agency as well as a management agency. If the new client thinks it’s a good match, he may purchase the property and utilize it part-time. He might then rent it out to others while he is not there.
Another niche strategy is internet purchasing
A buyers agency in Sydney may also embrace the concept of leveraging the internet to gain lucrative sales. Vacation homes and the resort industry are two common examples of this strategy in action. It may also be used in markets if a large number of purchasers come from outside the region.
Many prospective purchasers and users may need to do research and make essential preparations online. Furthermore, studies reveal that up to 70 percent of online house purchasers confess to not contacting more than the initial web buyers agency that contacted them. Assume that a Sydney buyers agency can create a great first impression on a prospective purchaser. In such an instance, there’s a good chance you’ll be able to turn a profit.
In a distressed property, agency is important
As a Sydney buyers agency, you may also help people acquire homes that have been advertised because they are in crisis. After the real estate and mortgage markets fell in late 2006 and early 2007, this niche arose. However, you should avoid placing too much emphasis on planning, marketing, or even future gains from the seller’s poor times. While the consumers may be able to turn things around, the agent has gained business as a result. You can also read about Buyers agency Agreements Guide by visiting http://nationalmea.org/2022/05/15/buyers-agency-agreements-guide/
If a buyers agency can demonstrate a successful endeavor from any of the above prospects, he may create a presence in the sector.
You will be required to sign a contract if you decide to sell your home via a real estate agent. This article will walk you through the ins and outs of these buyers agency agreements so you can make an educated decision before hiring an agent.
What are buyers agency agreements and how do they work?
A legally enforceable contract between you (the seller) and the real estate agent is known as a buyers agency agreement. It contains information on you, the agent, and the property. It also outlines the terms of the agreement between the seller and the agent. This includes the following:
- Buyers agency agreement type (see below)
- The advertising price, the agent’s expected selling price, and the vendor’s minimum sale price
- Fees and commissions
- Method of sale
- Time for settlement
- Duration of the agreement
The territory of the Australian Capital Territory
Exclusive and general sales agreements are used by the ACT. An exclusive arrangement enables you to offer your home with just one agent, but a general agreement allows you to list it with several agents.
Exclusive buyers agency agreements vs. open listings
Both open and exclusive agreements have advantages and disadvantages, so think about which is best for you. Open listings might be appealing since you’ll have a slew of agents vying for your business, and you’ll save money on commission if you find a buyer yourself. However, because of the increased competition, agents may be deterred from prioritizing the sale of your home under an open arrangement.
Agents that have an exclusive arrangement with you will usually prioritize your property and work harder for you. Many agents will only work with you if you sign an exclusive or non-exclusive agreement, thus selecting an open listing agreement will significantly reduce the number of agents you may work with. Visit http://nationalmea.org/2022/05/15/are-you-looking-to-deal-with-a-buyers-agency/ to read about Are you looking to deal with a buyers agency?
Are the terms and circumstances of an buyers agency agreement negotiable?
Yes, If the terms and conditions of an buyers agency agreement do not satisfy you, you do not have to sign it. You should negotiate if you believe the agreement is tailored to the agent’s requirements rather than your own. Keep in mind that an agent wants your business and will work hard to earn it. It’s worth seeking another agent if an agent refuses to make the desired revisions to the buyers agency agreement.
What should the agent’s commission be?
The commission, fees, and expenditures are all variable and may vary from one agent to the next. It’s a good idea to evaluate agent charges before choosing one and signing a buyers agency deal. You may get a paper copy of their prices so that you can compare them more readily. You may also use this information to bargain with your favorite agent for a better offer.
When do buyers agency contracts begin?
In NSW, you have one business day to alter your mind after signing a buyers agency agreement. This is a standard cooling-off time. Your agreement will be legally binding after this has passed. You must notify the agent in writing if you decide to terminate the agreement within this time frame. You can read more about Choosing a niche as a buyers agency in Sydney by clicking here.
Other states and territories do not have a cooling-off period, therefore it is critical to read the buyer agency agreement carefully before signing.
When do buyers agency contracts expire?
You and the agent will agree on the term of the agreement before signing it. If you decide to stop the agreement before this time period has elapsed, you must notify your agent in writing. This is only feasible if your buyers agency agreement has a termination clause, so double-check before signing.
An exclusive arrangement usually implies you’ll be tied to your selected buyers agency for the term of the contract. When there are substantial issues about the sale of your home, this may be difficult. This is all the more reason to carefully choose your agent.
What is the best way to draft an optimal buyers agency agreement?
It is obvious that not all buyers agency agreements are equal. If you’re ready to haggle, these pointers will help you persuade the agent to work in your favor.
1. Have three agents interview you so you can compare them.
2. Compare the three buyers agency agreements and pick the one that benefits the vendor the most.
3. Determine the length of the agreement based on market circumstances.
- In a buyer’s market, 90 days is ideal.
- In a seller’s market, 30–60 days is preferable.
4. Remove any stipulations that offer the agent a commission if the property does not sell. An agent should only be paid a commission if the property is sold within the agreed-upon time frame.
5. Consider a tiered commission structure, in which the agent receives a greater fee if the property sells for more than the asking price.
6. Examine the advertising costs. Make sure you’re paying for advertising that gets your property the attention it deserves and that you’re getting a good deal. It is worthwhile to spend more money on advertising in order to attract more prospective consumers.
7. Check for a termination provision that permits you to end the buyers agency arrangement with notice.
Agents that are good at what they do will negotiate their buyers agency agreements.
Buyers agency contracts that incorporate terms and circumstances that favor the buyers agency might be costly to you. If you have a 12-month agreement with your agent that involves a half commission if your property does not sell, for example, your agent may not try as hard to sell your home. Even if there is no sale, you may be out of money.
Negotiating a favorable buyers agency agreement is vital, but so is finding a trustworthy, loyal, and hardworking agent. Unfavorable buyers agency agreements are not offered by all agencies. Now is the time to choose a good agent and start drafting your perfect buyers agency agreement.
Agents of the Year in Each City
In each of Australia’s major cities, we examined the health of agents and the property market. Remember that one of the most important elements to consider when picking an agent is their proximity to you – even though we’ve suggested an buyers agency in your city, if they’re in a whole other area, they’re definitely not the ideal option for you.
Sydney’s Top Agents
In Sydney, there are over 9,000 agents working for roughly 3,000 different agencies. Sydney is Australia’s largest property market, which explains the large number of real estate brokers operating there. In the previous 12 months, around 52,000 houses in the city have been sold, with a median price of $815,000. In Sydney, the typical price for a home is $925,000, while the median price for an apartment is $700,000.
Melbourne’s Best Agents
In Melbourne, there are over 9,000 agents employed by approximately 2,000 different firms. Over the last year, around 71,000 homes have been sold, with a median price of $653,000. The typical price for a home is $720,000, while the median price for an apartment is $536,000.
When selling in Melbourne, it might be difficult to narrow down your options, so compare agents on our comparison page if you need assistance narrowing down your options.
Before you employ a buyers agency to help you purchase your next property or house, you need to have some basic knowledge to guarantee that you select the appropriate one. This post was created to assist you in making decisions about which buyer’s agency to choose.
What is the cost of a buyers agency?
The cost of a buyers’ agent varies according to the agency, your location, and the quality of service they give. For instance, if you just need a buyers agency to attend an auction and bid on your behalf, their cost might be as little as $100.
The more you want them to accomplish for you, the more expensive their services will be. It’s typical to charge a percentage of the purchase price of the property if they’ll be completing a comprehensive property search, inspection, and negotiations. This complete service cost might range from 2% to 3% of the selling price. Check out Buyer Agency Sydney for more.
So, if you’re buying a $1,000,000 home, you may anticipate paying your buyers agency roughly $20,000 (2%) if they provide complete service. An upfront fee, which may range from a few hundred dollars to over $3,000, is often charged. This may be refunded after a property has been found.
Other agencies may have a set fee, may be based on a price range. If you want to spend between $2 million and $2.5 million, for example, you might be charged a flat fee for this range.
It’s a good idea to do some research and ask about it; receiving a few quotations might give you an idea of what you can expect to spend in your region.
What is the best way to locate a buyers agency?
You may find a buyers agency in your region by using a search engine and
reading through reviews. If you know someone who has utilized a buyers agency, ask for their contact information.
On the Real Estate Buyers Agents Association of Australia website, you may search for agents in your region.
Is it true that buyers’ agents are exclusively for the wealthy?
A buyers agency deals with a variety of budgets, so they’re not only for the wealthy. A competent buyers agency is worth their weight in gold, so you must consider whether or not you need their services.
Remember that you don’t have to go for full service; if all you need is a buyers agency to represent you at auction, it won’t be too expensive.
If saving money on your home purchase is a goal, skipping the buyer’s agency this time can be a good idea.
Do you save money by using a buyers agency?
Yes, you can save money by using a buyers agency. It’s not a given, but their insider knowledge and superior bargaining abilities might come in handy. If you tell your realtor that you want to stick to a certain budget, they’ll exclude possibly higher-priced houses from their search.
The following are some of the ways a buyers agency may save you money:
Having access to properties that are off-market or pre-market and where sellers may be looking to sell fast. As a consequence, you may be able to get a better deal.
Their job as experienced negotiators is to find you an attractive home that fits within your budget (ideally leaving you with some money in your pocket).
A buyers agency bids on your behalf at auctions and know when to back out of a potential sale. They may be able to tell you if a property is worth the asking price based on their previous experience.
A qualified buyers agency may make the process of purchasing a home much simpler. It’s a good idea to consult with a mortgage broker when it comes to obtaining a house loan.
Here are some of the most important characteristics to look for in a buyers agency
The ever-changing real estate process can be perplexing at times, which is why working with an experienced, dependable buyers agency is critical!
Here are seven qualities to look for in a real estate agent to ensure a positive home buying or selling experience!
1. Working full-time
This is not an area where you should make concessions. Most people’s largest financial transaction is buying or selling a house. A full-time real estate agent is required.
How well will a person who only has a client once in a while negotiate with an agent who is out there every day? When they haven’t seen many homes sold recently, how will they know how to price yours? How will they be able to deal with problems that arise while they’re at their other job?
2. Internet savvy
According to a survey conducted by the National Association of Realtors, 9 out of 10 house buyers now use the internet as one of their major research sources, with 52 percent using it as their first stop, so you’ll want an agent that makes good use of this tool.
It’s critical to have a web-savvy buyers agency that knows the internet and search engines in order for your house to stand up online – where you (and other buyers) are searching! People in today’s internet age anticipate information as soon as it becomes accessible. If your real estate agent isn’t computer savvy, you may not realize your desired house has been posted until it’s too late, after other buyers have placed bids. Read more about Buyers agency Agreements Guide by Visiting http://nationalmea.org/2022/05/15/buyers-agency-agreements-guide/.
3. Have a valid license and are in good standing.
Check with your state’s regulatory office to determine whether your buyers agency is licensed and if any disciplinary proceedings or complaints have been filed against them. This isn’t a complete assurance of your agency’s honesty, but it’s a start.
You may also use Google and other search engines to check what other people are saying about your real estate agent.
4. Communicates effectively and often
Lack of communication is the most common complaint in the real estate sector.
Even if there’s nothing to report, it’s critical to get regular updates through phone, text, and email. When speaking with a possible buyers agency, inquire about how and how often they would keep you updated on your transaction. (Then ask the same question to their previous clientele.) Their response should represent the sort of contact you want and how often you want to hear from them.
You want a buyers agency that understands how to bargain and can navigate a purchase deal. This may seem obvious, but if you want to purchase or sell a home, you should use a residential agent rather than a commercial one. Many real estate brokers get further training in certain areas of the industry.
HOW DO YOU CREATE A LOYALTY PROGRAM THAT LASTS?
Creating a loyalty program is not a difficult task. However, knowing what gives your customers maximum satisfaction and what motivates them to keep coming back to your business. When you get those basics right, you can create a loyalty program that addresses your customers’ ultimate needs and your business at the same time.
Brand loyalty is the primary aim of every loyalty program. Let this fact remain at the center of your planning while creating your program. Meanwhile, businesses and consumers have different goals and objectives. While buyers want to patronize a company that offers them products or services at a lower price and makes them feel esteemed, sellers also seek to build a large customer base that will keep patronizing.
So, how do you create a program that will achieve this balance? Here’s a step-by-step guide on creating a loyalty program that lasts with a strong following of loyal customers.
1. Choose a unique name
If you want to launch a successful loyalty program, you must get everything right, and it starts from the name you call it.
Indeed, your program’s name sets the tone for your customers, who are the potential members. It can be the reason a buyer chooses to join the program or sign up for another brand. Hence, you need to sit down and think deeply of a unique name that will sell your brand to buyers.
Your program’s name will communicate what your members stand to gain for joining the program. Also, emotion is one thing that can motivate customers to join your program. Hence, it’s good to find a name that can inspire a feeling that aligns your brand with your products or services.
Besides, what you call your loyalty and rewards program dramatically impacts the overall effectiveness of the scheme. Although most businesses undervalue what they call their loyalty program, it is crucial in establishing a strong relationship with the members.
2. Know your customers’ ultimate needs.
Typically, every loyalty marketing program’s goal is to gain customer loyalty, as the name implies. At the same time, customers cannot be loyal to a brand that cannot satisfy their needs. The same thing applies to your loyalty program.
One of the easiest ways to encourage customers to join your loyalty program is to design it to fit your customers’ needs. When you achieve this goal, you don’t need to persuade your customers before they sign up. Everybody wants to be in a place where he is valued. So are your customers too.
Now, how do you know your customers’ ultimate needs? It’s simple. Implement the following strategies to get the best result:
When you have decided to create a loyalty and reward program, thank you for coming is not the only thing you do when customers buy from your store. As your customers patronize, make sure you compile a contact list to have your existing customers’ details.
This step will help you create greater insight into how many customers frequently interact with your brand and why. It will also facilitate an easy launch of your loyalty marketing campaigns.
- Track your customer behaviors.
You have to study your customers’ behaviors to know what they want and when they want it. That will help you build a program that will satisfy them to the fullest.
- Take a multifaceted approach.
It is crucial to categorize your customers’ traits and preferences. It will help you have a multifaceted perspective of your diversified customers. When you get this right, you can be sure of having a program that will satisfy your customers with their uniqueness and diversities.
3. Choose your preferred loyalty program.
This step is one of the most crucial in the entire creating process. After you have known your customers’ ultimate needs, the next step is to choose the best type of loyalty and rewards programs that will motivate your customers to be loyal to you.
Here’s a list of the most common loyalty and rewards programs you can choose for your business.
- Points-based program: This type of program is the most common out there. In this point system, customers earn points for every purchase, which they can either use for future purchases or redeeming the points in other forms of reward.
- The tier-based program: in this type of program, customers will have to continue making more purchases to earn the required points to get to the next level—the higher the tier, the better the rewards.
- The paid program.
This program requires loyal customers to pay an annual fee to join the company’s VIP list. Customers on this list have access to several opportunities and outstanding rewards.
Other programs are the charity program, the partner program, the community program, the subscription program, etc.
4. Reward a variety of customer actions.
While creating your loyalty program, you must be bear in mind that loyalty marketing is not all about rewarding your customers only when they purchase. Many successful loyalty programs reward every action of their customers in favor of the business.
Your loyal customers should get rewards for sharing your posts, following your brand’s page, liking your posts, signing up for your emails, and more.
5. Offer a variety of rewards.
We’ve earlier discussed that customers have different needs and taste. So, you wouldn’t want to offer the same reward for all and expect all-around customers’ satisfaction. Ensure that you provide a wide variety of rewards to satisfy your esteemed customers’ various needs.
While some customers like to go on a trip, some may value a members-only event that separates them from other customers. However, this step will only be more straightforward if you understand your customers’ behaviors better.
6. Provide multiple opportunities for customers to enroll.
No matter how rewarding your loyalty program is, it is not complete if your customers find it difficult to join. You can create a mobile app that works on every mobile device to make it easy for your customers to access the program anywhere, anytime. You can also use loyalty cards, coupons, discounts, freebies, and more to keep it simple for your customers.
Loyalty and rewards programs are useful tools to build a large customer base that will keep coming back time after time. However, many loyalty programs failed because the organizers are ignorant of some of the abovementioned facts. Every successful loyalty program needs to focus on its customers’ needs and preferences.
Customer loyalty is defined as the willingness of a customer to interact with a specific company brand or purchase a product or service as presented by the company continuously. This loyalty program can also grow or be cultivated through the deliberate efforts of the business brand. However, the most critical factor to note is that a customer loyalty program’s effectiveness or success hinges on such customers’ favorable experiences with the brand.
This factor propels such customers to return and increases their likelihood to make repeat purchases from such businesses. Research proved that loyal customers could spend up to 67% more on desired products and services than new customers. Mind you, these loyal customers may only constitute 20% of your total customer base, but they can drive up to 80% of your total revenue. Hence the need to be deliberate about setting up a viable customer loyalty program.
Particularly in a somewhat saturated niche, it is vital to focus more on retaining a customer than acquiring new ones. Statistics show that it is five times easier to retain an existing customer than to acquire a new one. As a result, you can get a loyal customer to keep buying your offered product or service for practically their lifetime. This article lists out the top benefits of setting up a customer loyalty program.
Advantages of Customer Loyalty Programs
- Drive a continuous business
Loyalty programs allow your business to remain the first thing on customers’ lips when they feel a need for what you sell. These loyal customers are the most likely ones to return to your brand repeatedly after making a purchase. At first, some of them might have just found your bran randomly, but just one interaction should be enough to retain them and make them come back with the assurance of being satisfied.
The excellent experience you give to customers is your surest bet that they are willing to return to buy. And the chance of creating such an unforgettable experience depends on many factors. One of them is customer service relationship, delivery time, quality of product or service, and more importantly, the loyalty reward program that motivates them to return.
- Build a team of brand ambassadors
A team of brand ambassadors is the first loyal customer who kept coming back. And not only so, but they go ahead to spread the great news about your brand through direct word-of-mouth marketing without pay. Alternatively, some of them can post reviews on your site or share what they enjoy about your brand through social media. Research showed that happy and satisfied customers are more likely to share selling points of your business product or service with others.
Happy customers will also likely tell family and friends about your brand, making you reach more people and make more sales. As a result, these loyal customers turn brand ambassadors can save you much money from marketing while bringing you great results. And if you continue to impress customers, the team of influencers or brand ambassadors keeps increasing, with more results.
- Boost your revenue
What better way to boost your revenue than the assurance that a large portion of your existing customers returns and buy again. It is already a fact that these returning customers spend much more (close to 70%) than new customers. This increase is that they have built a level of trust in the brand, which continues to grow as a favored choice.
As a result, once a customer enjoys satisfaction with your product or service, they are willing to spend more money on it. Consequently, you get more revenues from sales to these returning customers who bring others to buy. Your net revenues also increase as you may not have to increase your marketing expenses while you rake in more sales revenues.
- Get valuable feedback
Through effective loyalty programs, loyal customers are more willing to answer surveys, quizzes, questionnaires, fill in contact forms, and other feedback channels. Moreover, they already like your brand and derive satisfaction from associating with your products and services. Therefore, it takes little effort to get a response or an engagement from them.
More so, these loyal customers are willing to share what they feel can help you improve the brand quality. At other times, they may want to encourage you to keep up your efforts on brand quality. Therefore, when you crate customer loyalty programs, you improve your chances of making returning customers give you helpful advice and motivation to keep up the excellent work. This strategy enhances the results you can get from core marketing strategies and actionable tactics.
- Guard against competition
As you enjoy the pleasures of customer loyalty programs and results, remember the existence of your competitors who are on the prowl. Therefore, you can protect your brand against competitors by developing a team of loyal customers who are willing to spend every penny on your brand. And as you earn more from these loyal customers, your competitor loses more.
As a result, the brand owner has to cultivate customer loyalty programs’ advantages to achieve greater productivity. Ensure you keep your loyal customers happy to reduce the chance they consider a competitor’s brand continually. More so, as you give more reward and profit to these loyal customers, you give more reason to continue to purchase from you and not your competitors.
On a final note, companies have discovered these fantastic benefits from valuable loyalty programs that help them achieve their marketing goals., every customer is happy to get a 20% bonus on a product or service because they are a returning customer. The customer marketing approach also creates a kind of omnichannel program through a sustainable customer database.
These loyalty programs convince customers that you care and that you have their best interests at heart. Therefore, it is no crime to benefit from this existing benefit for a long-lasting business relationship. The program also allows your brand to grow more value and drive up sales while beating off competitors.
Hopefully, you have not believed the lie that the easiest part of a business is starting because acquiring and sustaining customers can pose more challenges and may have caused some to give up on their business dreams. While it is essential to spend a great deal at spreading your brand’s awareness and winning the hearts of potential customers, you also have to prepare for what it takes to retain them.
A great brand should make room for more customers to return over and over again due to great satisfaction. It is also essential to learn the less challenging strategies of achieving better results, customer loyalty programs. These programs keep customers satisfied as they continually visit the brand to make purchases. Perhaps, the next notable question be how long it takes to build an effective customer loyalty program?
How long does Customer Loyalty Take?
Brand marketing departments spend much time buzzing around special selling seasons to dole out special offers to new and existing customers. For instance, holidays such as Black Friday, Christmas, New Year, Thanksgiving, Cyber Monday, and others are great opportunities. And part of the rush hour, a customer loyalty program brings in another twist to the story.
More so, great brands have implemented several loyalty programs and have established the goodies as returns. For example, Coca-Cola, Walmart, Nike, Victoria’s Secret, and some other top brands are users of customer loyalty programs that come as often as possible within a year. Notably, the length of time that the customer loyalty program takes may depend on the type of program’s choice. For instance, there are two basic types of loyalty programs:
- Homebuilt, in-house, or hosted reward programs, which boasts of various unknown variables and requires more customization from brand owners to build effectiveness from the targeted customers
- Software-as-a-Service (SaaS) partner reward programs are more like out-of-the-box innovative strategies to retain existing customers towards increased revenue through sustainable customer satisfaction and rewards. Many ecommerce stores such as BigCommerce and Shopify find this program very useful and perhaps because it requires less customization than others.
Hosted programs that require more customization take a longer time to implement. Furthermore, the brand may also spend even more time educating its employees about the program’s application. Brands can spend between one month and a year to develop a workable loyalty program even before the start of the hosted program. On the other hand, SaaS solutions take a shorter time to implement.
More so, because this process is quicker than others, users can implement them with fewer touchpoints. In all, implementing SaaS programs may not take more than a few weeks at most. In some cases, the implementation may take as little as a day at its lengthiest possible time. More so, apart from the choice of the loyalty program to use, perhaps the next piece of the puzzle can identify the best time to implement the loyalty programs.
When will Customers start to Trust Your Brand?
Based on a piece of professional advice derived from a new survey, it may take up to two years for your customers to completely trust and patronize your brand. In fact, in more specific terms, a customer takes up to two years of continuous dealing before agreeing that your brand product or service is one that can be trusted completely. SDL, a customer engagement company, published this fact while sampling up to 2835 people from 6 continents, five languages, nine markets, and four generations.
However, to reach the revenue topping point, it can take up to twice that amount of time: four solid years. At this point, your customers begin to spend much more money on your brand than on any other competitor. If you are more prepared for this work, you can determine to spend five years to get this done and begin to witness results. Similarly, you find it easier to treat your friends that you have remained together for more than 5 years than those you met only 1 or 2 years ago. The confidence is more natural with age-long friends than with others.
Best time to start a loyalty program
In the plot to identify the best loyalty marketing plan and program that can yield the best results for your business, three elements can help you make better decisions than others:
- Type of products
The industry your business brand is in determines the choice of loyalty program to integrate. Each of these aspects of the industry has its uptime seasons or ‘busy’ seasons that a marketing expert must consider when launching a new loyalty program campaign. For instance, ecommerce stores sell more during the festive seasons, holidays, and particularly Black Friday.
Besides, office, business, school-related stores, and suppliers sell more of their products during the back-to-school season. Similarly, fitness products may sell more during the New Year when many people are looking for ways to execute their resolutions. The time taken to implement loyalty programs includes preparation, planning, and the actual implementation.
- Length of the testing period and the launch stages
When you choose the program type, design, and customizes the new product or service, the next step is to roll out stage-by-stage all the required features and improvements throughout the timeline. Creating and nurturing a loyalty program is not a once-and-for-all system, but it demands closer attention and needs to be maintained over time.
Therefore, you may need to give yourself enough time while you focus more on the progress you would be making. A good strategy that many companies employ is the soft launch, which is a way of making the new program available to first a handful of people and getting all necessary feedback on them. When the company refines these reasons according to the received feedback, the final product is always nearly perfect.
- Size of the store or company brand
The size of your store or your business can also determine the loyalty program support that you need and when most are appropriate to launch the same. It may even be the most critical factor to consider before the start of the loyalty campaign program. In other words, it takes a reasonable time to grow and evolve into a system that can continually make more profit for the owner. Also, the process has the possibility of getting more prolonged than expected, depending on the size of the store
On a final note, we have established that the time it takes to build a formidable customer loyalty program is relatively high. But that is why there is no better time to buy a kick of such exceptional programs than on special occasions. Also, loyalty marketing program experts spend more time nurturing and cultivating the program before establishing trust with customers.