How to build customer loyalty with a tipping competition

When consumers live in a world saturated with choice, how do you entice customers to come back to your business time and time again? How do you create ongoing connections that inspire customers to re-engage once their initial transaction is complete?

Let’s dive into a game plan for converting new customers into champions of your brand.

Customer loyalty and why it matters

It goes without saying that customers are the backbone of any successful business. But it’s those customers who are loyal to us who keep our business alive. They’re the people who keep coming back to use our services and buy our products. They’re our cheer squad; the fans of our brand who sing our praises - even wear our colours and logos!

They’re not that different to sports fans. Think about the loyal customers of Coke vs Pepsi, Holden vs Ford, Adidas vs Nike - these people don’t just buy the goods - they live, breathe and actively advocate for their favourite brands.

Loyal customers will buy from you, even when your goods are not on sale; they’ll post positive reviews about you online; they’ll recommend you to their friends, family and colleagues. And even if they’re not big spenders, they can generate new business and brand awareness on your behalf, which is a win in itself

Running the stats

An article by Forbes reported it can cost up to 5 times more to attract a new customer than to retain an existing customer. Profits could also increase by more than 25% from a 5% increase to retention rates.

According to inbound marketing and sales heavyweight, HubSpot, existing customers will spend 31% more with your business than new customers. They’re also 50% more likely to try a new product than new customers.

So it pays to invest in an ongoing strategy to build customer relationships and loyalty.

A surprising customer loyalty marketing strategy for the win

This is where a sports tipping competition can be an innovative way to turn existing customers into loyal customers.

Sport is an integral part of humanity. It ignites a sense of belonging that transcends borders, generations, gender, ability, even ethnic diversity and language barriers. Its capacity to unite people from every walk of life is unparalleled.

The power of team culture creates incredibly strong bonds that can last lifetime.

When considering new ways to build a customer loyalty strategy, tapping into the passion and excitement that surrounds sport is a great way to get ahead of the game. A tipping competition provides a common ground that encourages interaction and bonding.

It’s no surprise that sport is a huge part of Australian life. A study by Roy Morgan revealed more than 40% of Australians over the age of 14 support an AFL team. In 2019, AFL games attracted more than 7.5 million spectators, while viewership of the NRL attracted nearly 3.2 million fans.

Those two sports alone create a huge customer base to tap into with a fun, friendly strategy to increase customer loyalty.

How to run a footy tipping competition to build strong customer relationships

So what are our top tips on how to build customer loyalty and positive customer retention strategies with a tipping comp?

• Make it fun!
  Create buzz and excitement around your tipping comp. Encourage tipsters to post their wins on social media, or get involved in discussions around their favourite sports and teams. It’s a great way to build a feeling of community and friendly rivalry that keeps people coming back for more.

• Make it flexible
  During winter you can run football or rugby tipping comps, and switch to tennis or cricket during the summer. Or create one-off competitions for iconic sporting events such as the Melbourne Cup or Olympic Games. The diversity of your competition is unlimited!

• Make it easy
  Keep it easy for people to join and participate in your competition. An online tipping portal removes the need to fill paper forms, so people can submit tips wherever they are. Automated reminders can also give a gentle nudge to those who have forgotten, ensuring they get to be part of the action.

• Make it mobile
  A mobile app makes it super easy for tipsters to check stats, lodge tips and engage with your tipping community anywhere, any time.

• Make it yours
  Add your own branding, such as logos and colours, to your tipping portal. Repeated exposure increases visibility and improves customer retention of your brand. It helps put your business front of mind when people are looking to use or recommend your products or services.

A great user experience can make all the difference to the success of your competition and how it performs as a customer retention marketing tactic.

How to get your customers involved

Once you’ve set up your tipping comp, it’s time to invest in a marketing campaign to invite your customers to join in.

• Email invitation
  If you're a business with a customer database, a personal invitation via email is a great place to start. Get your emails sent out well in advance of your main competition to give people time to familiarise themselves with your custom tipping platform.

• Social media
  This is a great way for smaller businesses or retailers to promote a tipping competition to their customers. Create a series of enticing posts to share with your audience and encourage people to post their hot tips and favourites to build a sense of community.

• In-store promotion
  If you have foot-traffic through your store, encourage your staff to promote your competition. Perhaps you can add the web address of your tipping comp to your loyalty cards or in-store signage.

• Website landing page
  Create a landing page on your website that invites existing and potential customers to take part in your tipping competition. This is the ideal place to be more relaxed and informal in your messaging.

Once existing or potential customers have signed up, you’ll have their details on your database. Welcome new members with a special offer or something fun to create a feel-good experience straight off the bat. It’s the perfect way to encourage people to feel positive about your business.

Keep your eye on the prize

Remember, now you have people engaged, you need to keep them engaged to build an ongoing relationship with them.

Having built a base of customers ready and willing to be part of your team, your tipping competition gives them a reason to feel excited about receiving emails and updates from you. The chance to win a prize (or simply rank higher on the leaderboard than Gerry from sales) can provide the incentive for them to open your emails with glee and enthusiasm.

With customers eager to open your emails, there’s the opportunity to add in a sales promotion or link to a new product here and there. It could be a special promotion for tipping participants only, or a “sneak preview” exclusive to your tipping audience. While this may not be a prize, as such, it still rewards customers for being part of your tipping community and can help strengthen their loyalty toward your brand.

Ready to GoTipping?

Get the ball rolling with the GoTipping app and discover the flexibility to create your own branded tipping portal where your employees and customers can be part of the action. Mobile-friendly design makes it easy for users to access live scores and submit tips from anywhere, at any time.

Explore all the exciting features of GoTipping and knock your retention rates out of the park.