It's common marketing knowledge that retaining a customer can be cheaper than acquiring a new one. One way to encourage customers to return for more? With rewards.
By integrating rewards into the shopping experience, brands enjoy not only repeat business but also the perks of customer loyalty.
Shoppers rarely hit the Buy Now button after encountering a brand for the first time.1 Instead, they journey through a marketing funnel that comprises several main stages.
Here's how rewards can play a pivotal role in each phase:
First impressions matter more than ever when attracting shoppers. One 2022 study found that Gen Z, for example, gave ads an average of 7.6 seconds of passive attention and just 1.3 seconds of active attention.2
Use rewards to:
After you’ve done the hard work of attracting new customers and closing a sale, how do you keep your brand at the forefront of customers’ minds?
Enter reward programs. By offering ongoing freebies, points, or exclusive benefits, you can use reward programs to help engage with customers, encourage repeat business, and boost customer retention.
More importantly, rewards can do more than just provide a financial benefit — they may help forge an emotional bond with customers. Personalized rewards, like anniversary gifts or surprise bonuses, make customers feel valued and more connected to your brand.
Diversifying your rewards can keep customers on their toes and spark renewed interest in your brand.
Consider customer discounts such as:
PayPal isn’t just a payment solution. It’s a comprehensive business tool that can help transform one-off customers into brand advocates.
Here’s how:
Ready to elevate your customer experience and boost retention rates? Learn about PayPal Complete Payments.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
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