Most of my articles, as you all know, have been written in a way to help DJs who might be struggling with developing or enhancing their marketing strategies. One of the topics I discussed lightly not too long ago was “Loyalty Marketing.”
That one specific topic generated a ton of questions and responses from many DJs all around the globe. I received 40 to 50 messages asking if I could explain, with a little more depth, how that type of marketing works. If you are sitting there wondering what Loyalty Marketing is or how it can help your DJ business, you have turned the page to something that will answer that in an easy way.
For many of us, we’ve already taken advantage of a Loyalty Marketing strategy by a business. Frequent-flier programs with airlines, shopper clubs at grocery stores, Amazon Prime accounts, point-based programs with different retailers that lead to discounts or free items, and so on.
Loyalty Marketing is a strategy that focuses on acquiring customers and incentivizing them to book you or purchase from you again and again. New customers are hard sells. You must overcome their skepticism and convince them that what you have to offer is better than the company down the street. But with loyal clients, the work is already done, and you have proven yourself. They already value you over the competition, and they already have confidence in what you are offering them. You simply need to stay on their radar and incentivize their interactions with you.
If COVID-19 has taught us anything, it is that Loyalty Marketing is the best way to ensure the long-term survival of your company. Did you know that only a mere 5-percent increase in client retention can boost your profits by as much as 125-percent? That is because a loyal client is up to 15-times more likely to sign you as their DJ than a new client who might be shopping around.
Businesses with a loyal, committed client base can weather the storm better than anyone. If you can build a loyal client base, you will be able to weather any economic storm that comes along. It all starts with effective Loyalty Marketing strategies.
While they can be effective, Loyalty Marketing strategies and tactics are nothing new. Most fall into one of three categories: points, tiers, and discount programs.
That is why some large brands and businesses are looking to shake things up and find innovative new ways to build reward programs and inspire customer loyalty. You reward your clients who repeatedly interact with your business. It is a customer-retention strategy that encourages your client to continue to book you rather than your competitors. The more a client engages with the business and hires you as their DJ, the more rewards they could earn.
You can offer a point system, discount program or special tiered pricing with a goal to motivate repeat bookings and to build ongoing trust between your client and your business. Here are some examples of ways a Loyalty Marketing Strategy can work for you:
1. A client books you for their wedding, and they loved you. You receive a great review and they highly enjoyed everything you offered them. They reach out to you a few months later after the wedding and say their parents are having an anniversary party and want to book you for that event. You do that party and, again, they love everything you did and how well it came out. Fast-forward to another few months and they say they are planning a birthday party for another family member. You do it, and it is a big success. At the party, the previous groom tells you he is the Best Man in an upcoming wedding and has been tasked with finding the entertainment. He wants to book you for that. This initial client now becomes a steady revenue stream for you because they know what you deliver and are capable of offering.
2. A school reaches out to you and books you for a school dance. You do outstanding work and make them very happy. The students all had a great time and said you were the best DJ they ever had. The school reaches out to you a few months later and says they would like to book you for an upcoming sporting event and pep rally. You do it with the same results and happiness. Move forward a few months and the school wants to book you for their prom. They have come to know the way you do things, and you deliver the promise of making everyone happy. This has become another steady revenue stream and easy sell for you because every single time there is a new school function, they will reach back out to you to do it.
3. A company inquires about booking you for their annual summer party. You do it, they loved everything you did, and are very happy with the way it turned out. They then say they want to book you for their annual holiday event. You do it, they loved it, and now want you to do the event every year going forward as their official DJ.
As these continuous revenue streams start happening and you get repeat customers, you may want to give an incentive to assure that they continue to book you for a long time instead of trying out a competitor or someone new. While this all may seem a bit controversial, we all work with a profit margin and no one likes to give away money or services.
But if it assures that you will always gain repeat business on a regular basis, and it becomes a sure thing with a client, it may be worth your while to give something away that will solidify clients signing you over and over. It could be a small package discount, it could be free lighting, it could even be a brand-new product that you acquired and need an event to try it out at or be the guinea pig before offering it as an add-on to new clients.
This is where building either a point system, a discount program or special tiered pricing comes in hand. You would only offer these to certain VIP clients who you know will be booking you for regular events or even as an incentive for them to remember to inquire about your services. Putting together a Loyalty Marketing strategy or a customer loyalty program means you will need to give away something. The payoff for having this can be quite beneficial:
- More Customer Referrals: If you have a great loyalty program, your clients will also tell their friends and family about it. More referrals equal more customers.
- Higher Customer Retention: If people find value in your Loyalty Marketing Program, they will likely stick around longer and continue to book you for many other events.
- Brand Advocacy: A successful Loyalty Marketing strategy can turn regular clients into brand advocates. This group helps your company get in front of new clients through word-of-mouth, which is a low-cost marketing strategy versus paid advertising.
Loyalty Marketing takes time, but with the right multi-faceted approach, you can promote long-term customer loyalty in less time than you realize. Remember, it might sound obvious, but the single-most important thing you can do for the purpose of Loyalty Marketing is to put your clients first. Your clients become repeat business because they feel valued and because their needs are being met. If you truly put your client first, you will see retention as a result.
In conclusion, always remember that it costs five to seven times more to acquire a new client than to sell to a loyal client. When your business has a dependable client base, you enjoy an automatic competitive edge over other businesses in your area, you can consistently achieve a greater ROI since you generate more revenue while spending less on marketing and advertising, and you can continuously grow your client base on autopilot since your loyal clients will spread the word to people they know.
Perhaps most importantly of all, a well-planned out Loyalty Marketing strategy is essential if you want to be recession-proof. The economy goes up and down, but trusted brands and businesses can stand strong regardless of the economic climate. The COVID-19 pandemic has made this fact abundantly clear. Make sure your business and services are something that clients can always rely on. Stay safe and well out there!
Joshua Volpe is the owner of Rochester, N.Y.-based Kalifornia Entertainment.
To check out more business tips, click here.