1. Loyal clients are your most profitable clients
According to the report, “Achieving Big Customer Loyalty in a Small Business World,” 61 percent small businesses report that more than half of their revenue comes from repeat customers, rather than new business. Meanwhile, a repeat customer spends 67 percent more than a new customer.
You are also might be familiar with the Loyalty Effect, which is a 5% increase in customer loyalty would increase the average profit per customer by 25% – 100%. This data also reinforces that building a loyal client really impacts the financial health of your practice.
2. Loyal customers are easier to sell to
The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20%
3. Treating loyal clients royally is security for your practice
We are frequently asked by practice owners, "why should we reward our top clients, they will do business with us anyways". The answer is simple, they provide the bulk of your business and you need to secure that business. By rewarding your already loyal clients you will grow that particular segment and begin to cultivate a stronger base of clients as well. Once your veterinary practice gets in the position of winning clients back or opening the door to competition, you are less a less efficient and profitable organization.
4. Loyalty customer are more responsive To your Communications
Forrester reports that 64% of retailers say their loyalty/rewards program is the best way to connect with consumers.
5. Loyal clients are less price sensitive
Longtime clients were half as sensitive to a change in price than a new client according to a study done by the University of South Australia. As long as your loyal clients feel they are well taken care of, they will stick around, drive a distance to visit your practice and be loyal advocates for your practice. Discounting will no longer be necessary as you learn to reward loyal clients appropriately.
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Industry data still shows that a typical hospital will not see 50% of their clients next year. Improving or changing your reminder system will have limited impact on reversing this situation. If you want to see more clients next year you need to consider a solution that goes BEYOND REMINDERS.
Attend this 30-minute webinar to learn how a client loyalty program will help you see your clients more frequently, grow your practice's top line revenue and profits.
12:00 PM to 12:30 PM EST (9 AM PST)
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When your practice implements a rewards program your marketing strategy and messaging must change as well. The focus shifts to building the rewards program membership and cultivating the relationship with those members to increase their lifetime value with your practice. Discounts and coupons are no longer a priority nor an effective way to encourage client visits. You will now offer "perks and specials" as part of the value of being a member, but this should not be confused with a discount. At first, it might feel scary not to offer "this month's spiff" to nonmembers, but you will soon find it is more effective to use "this month's spiff" as an incentive to encourage clients to join your rewards program.
The benefits of a client becoming a member of your rewards program are numerous for your practice. Once a "member" their perception of their relationship with your practice changes. Members are more aware of your communications and respond at greater rates. You will also notice an increase in the number of larger ticket services scheduled due to clients saving up their rewards. To afford these more expensive services, members start purchasing items from you that they may never have before, such as dog food and medications or start using some of your other services such as doggie daycare, grooming or boarding services.
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