Rising costs of marketing - With the age of social distancing, more and more Kenyans are consuming digital content through digital channels. This has seen a huge surge in demand from many offline advertisers moving to online digital advertising and online delivery services. Which has driven marketing costs.

Online Reputation - With the rise of digital marketing and social media, losing your customers to poor customer service happens faster than you can blink. Plus, today your customers demand more meaning connections with your brand that goes far beyond your goods and services.

High Attrition Rate - Customer attrition or churn is a major reason why most businesses go out of business. Focusing purely on new customers acquisition raises your attrition rate and ultimately becomes an unviable way to grows your business.

Delivery Services - With commissions fees as high as 30% on gross sales, relying on delivery services (especially when servicing existing customers) is the hugest mistake we are seeing business make right now.

Social Distancing - Fewer walk-ins and limited space mean your business has to adapt to taking orders online ordering or via the phone.

Marketing priority - Juggling multiple tasks mean you're not spending enough time on perfecting your marketing strategies which are slowing your potential.

Marketing Attribution - Not knowing how well your marketing is working means your wasting money on ineffective marketing that does your business more harm than good.

Customer retention refers to a company’s ability to keep its customers.

Retention marketing focuses on your driving more revenue and referrals from your existing customers

Your existing customers are your most valuable asset. Engage with them in the right ways, and they’re significantly more likely to spend more, buy more, and recommend your brand to others.

Imagine how exponentially your business would grow if, in addition to acquiring new customers, you retained 90% of them.

So we know we want to get our customers to coming more often, spend more money and tell their friends how awesome we are — but how does Local help us?

REINFORCEMENT

By delivering a set of surprise rewards to your customers in return for specified behaviours (eg. purchases /frequency/spend/shares) you can encourage your customers to keep engaging in those desired behaviours.

The challenge is to design the right reinforcement schedule.

Rewarding too often can result in excessive marketing costs and end up less meaningful to customers.

On the other hand, failing to reward your customers results in lower brand engagement

BEHAVIORAL POTENTIAL

It’s easy to see how reinforcement can encourage repeat behaviour — but how do we get potential customers to engage with your program in the first instance?

To ensure that customers engage in the behaviours that you want them to — first make sure that the rewards that you offer are both achievable AND desirable.