July 23, 2024

Recouping Lost Customers Now & Post Covid-19

Good Morning ,

Last week as I was writing my tip I was waiting for it to rain, well it did not rain at all. Glad I watered my plants ahead of time!
If you have not planned out how your business is going to recover in the wake of the Covid-19 pandemic, then you need to start now and put that plan into action.
One of the things most businesses do to get lost or past customers back is to offer a discount on their next purchase. A study conducted independently by Aberdeen Group on behalf of Hawk Incentives found that businesses that offered reward-based promotions generated a 6% greater average profit margin per customer than those that offered discounts. Also getting a reward would encourage 63% of respondents (10,000 adults surveyed) to buy more from the business. The study also found that rewards also increased retention and loyalty vs. discounts, which are often forgotten shortly after checkout.
Customers are also willing to provide information in the rebate redemption process. This information can help businesses better define their customers’ profiles and buying habits and can also encourage future behavior.
Businesses that use a reward-based promotion over a discount one are more likely to have greater success and profitability, especially during the Covid-19 pandemic. Remember this as you plan out your strategy to recover and retain your customers.
Till next time.