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17th May 2022 - By: Marc Luther Thomas

Generating Long-Term Revenue By Creating And Maintaining A Loyal Customer Base

Generating long-term revenue with a loyal customer base

One of the main objectives of any business is to create a long-term revenue stream; a model that stands the tests of time and improves year on year. A key to achieving this is by creating a loyal customer base. In 2021 Accenture reported that over 90% of companies use customer loyalty programs and offer incentives to maintain customer retention.

Effectively, the success of a business relies entirely on its customer base and it’s important not to lose focus of your loyal customers, when trying to attract prospective ones. Your loyal customer base is your low hanging fruit and you must do everything you can to keep them ripe (apologies for that one).

In this blog we want to look at how some of the biggest brands in the world have offered incentives to both maintain and grow their loyal customer base.

Nando’s

I’m starting with Nando’s because quite frankly, we love treating ourselves to some peri-peri chicken at Nando’s Worcester, and our Content Manager, Marc is a seasoned member of its loyalty programme. And no, I have no idea why I’m not – I’m always envious when he cashes in a freebie right in front of my face.

Everyone with a Nando’s card is issued with a ‘Chilli’ every time they visit or order online, providing they’ve spent over £7. Beginning with a ¼ chicken or starter, customers can eventually end up with a free whole chicken. What I love about this loyalty scheme is that it’s so simple, yet so effective. Everyone’s a winner. Nando’s enjoy those repeat visitors and secure long-term revenue, while the customers keep going until they achieve their freebie.

Nike ID

This from Nike is a little different to others. It seems a life-time ago since it launched Nike ID and believe it or not, it has played a big part its customer retention. What started off as just a feature on the website has since grown to include over 100 in-store ‘studios’ all over the world.

Nike ID allows people to be unique by offering a unique service. Customers feel empowered in creating their dream trainer in which they know is likely to be a 1/1 throughout the whole world. Even if customers aren’t actually buying they can spend hours and hours playing around with the software to create their masterpiece, sending the fashion brand’s session duration stats into the stratosphere – believe me, I should know!

The Body Shop

The Body Shop’s loyalty scheme aims to COLLECT POINTS, CHANGE THE WORLD. MAKE A DIFFERENCE. The brand gives its Love Your Body Club members the chance to donate their rewards to one of its partner charities, which includes the British Youth Council, We Stand With Ukraine and Mindout.

I personally think this is an absolute masterclass from The Body Shop. An incentive doesn’t always have to benefit the individual themselves and giving people the opportunity to do something for the greater good gets my seal of approval. Well played, The Body Shop.

Amazon

I’ve saved Amazon until last for two reasons. It hasn’t been too long since I last mentioned them and also, statistically it offers the most successful loyalty scheme in the world with Prime. In other words, Amazon is the pinnacle when it comes to long-term revenue generation.

For most people, like myself, the biggest benefit is speedy one or two-day shipping (I still can’t believe how fast they are!). However, users also get access to Amazon’s popular streaming service, early access to deals, and a host of other discounts.

It currently boasts over 200 million subscribers and new benefits are also added frequently. This creates an intriguing element of anticipation and surprise for members, who never know what’s coming next.