Are brands really connecting with their most loyal customers?
Let’s say you are a premium perfume brand, having a million consumers. Your perfumes are sold across various retail outlets, which means they go through different mediums before reaching the end consumers. So, how would you personally connect and appreciate your loyal and best consumers, particularly those who choose you over others, every time?
The answer is “loyalty marketing programs”.
What is Loyalty Marketing?
You go to buy a dress. You not only get the dress from the brand but also $50 credit so that you can get a pair of matching earrings free of cost – that’s Loyalty Program, simply put.
It is a simple and profitable marketing strategy that creates a 2-way direct communication between brand and end-users, both online and offline. Loyalty marketing ultimately empowers brands to grow and retain existing users with instant rewards, such as in-app loyalty points, cashback, premium features access, discounts, free product, and more such incentives.
Loyalty programs minimize, or rather, end the massive gap between brands and end consumers created by distribution channels.
Why Do You Need Loyalty Marketing?
Today consumers are tech-savvy and smart – they are constantly on the move, spending hours on smartphones searching for new things. With so many options in the market today, consumers value personal touch from their brands more than ever. And if they don’t find it, they skip to new names. Retail imposition makes this even harder.
On the other hand, customer loyalty programs enable brands to connect to their best consumers in any sales channel and offer a medium to influence them with personalized rewards continually.
Besides, here are the top reasons why you need a firm loyalty marketing strategy in 2021:
- 2021 is the right time to retain high-value consumers – those who spend regularly and generously on your products. Did you know that a shopper’s 4th purchase is usually 40% – 50% more than their first purchase? Hence the retention strategy.
- Loyalty marketing solution by NeuroTags acts as a two-way communication channel – you get to learn your consumers and vice versa, enabling you to deliver a better-personalized experience on the spot. For example, by scanning NeuroTags’ QR code, the customer will be able to redeem the discount or reward right at the time of checkout without having to register again.
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- Loyalty programs and multi-level loyalty applications help gain new customers through referrals from existing loyal customers, thus driving sales and ROI. In fact, research findings state that referred consumers spend 75% more than the original buyer.
- Sales automation can be tracked and reviewed online in real-time, enabling brands to customize a different strategy for a niche group of consumers.
- It automates direct marketing; brands can send direct promotional ads, upselling, contests, and other rewards to consumers through push messages, emails, and texts, without an intermediary.
- Loyalty Marketing helps achieve a number of goals in a single shot – attract new users, gain consumer behaviour and purchase pattern data, boost consumer spending with attractive clubbed offers, and develop an emotional bond with consumers.
- If you wish to capture your consumers’ attention amongst other brands from the retail aisle, incorporating loyalty marketing engagement tools and software would help you stay on the game.
- The cream of insights derived from AI-enabled tracking and analytics allows you to prioritize your product lines that fulfill consumer demands. Besides, real-time tracking also makes your offline marketing efforts measurable.
- Loyalty Marketing engagement applications manage, gather, and aggregate users’ online and offline behaviours in a single place. It further offers customer segmentation, digital marketing automation, and combined analytics.
Loyalty marketing can be implemented in different, cost-effective forms. Even retail brands can leverage the power of modern engagement tools. The best loyalty marketing strategies are those that are app-less yet mobile-friendly. For instance, AI-powered tags (QR Codes) automatically acquire and retain customers on the spot with a simple scan from the smartphone. Check how App-less Loyalty Marketing Strategy also automatically reminds consumers to buy again from the acquired reward points.