The classic sales funnel — a mainstay in marketing for many years — is proving to be outdated in the current marketplace. So the loyalty funnel appears as a progressive and improved solution, focusing on not just how to get your customers in the first place, but also how to retain and have your customer remain loyal with time.
Perhaps the biggest plus-point of using a loyalty funnel. Focusing on delighting your current customers and driving repeat business will deliver a huge reduction in the spend of continually acquiring new customers for businesses. Repeat, referral and feedback volume rise when loyal customers are retained which drives more revenue per purchase and lesser marketing costs.
Therefore, customers in the loyalty funnel help to increase marketing costs by allowing you to use your existing customer base. Rather than spend a fortune on acquisition (that are only material-based and low odds) you can concentrate your energies on retention and engagement. Cost effective and provides a steadier income stream.
But equally important, the loyalty funnel also underlines that creating a better experience matters at each step of a customer journey. From customizations, and right-time communication to leveraging this feedback and iterating on products based of it. Businesses must ensure customers are satisfied and appreciated to generate strong, long-term relationships with them.
The difference is that while the traditional sales funnel might help to generate quick wins, the loyalty funnel ensures long-term growth for your business. When a business forms a loyal customer following, it builds the sustainable base for future growth. This loyal customer base will serve as your brand ambassadors that can provide to be the additional force for further costumers for new brands through word of mouth and positive reviews.
To sum up, the traditional approach of focusing on customer loyalty and long-term relationships provides a sustainable and profitable solution which is not just another marketing trend. To put it straight the loyalty funnel is much more than some new hype, but actually a solid and efficient marketing technique that increases profit, energy savings marketing/proud costs, better customer experience and sustainable growth.
