Loyalty marketing is a set of incentives that encourage customers to make repeat purchases from a particular company or supplier, but above all, it aims to build customer loyalty by creating special connections directly with the brand.
To ensure the success of a company, one must not only think about selling a product but also about customer loyalty which is useful for improving the company's turnover.
Loyalty marketing is one of the most used options in the field of e-commerce, to implement marketing strategies capable of achieving customer loyalty and maintaining their trust.
The advantages of loyalty marketing
Implementing a loyalty marketing strategy can bring several benefits including:
- Increases sales per individual customer: it is easier to communicate with someone who already knows you, hence the customer tends to repurchase a product from an already known company; essentially, we always return where we have had a good experience, right?!
- Builds closer relationships: the closer you are to your customers, the more you will increase sales;
- Creates ambassadors: if a customer is loyal, there's a higher chance they'll talk about you on social media;
- Avoids price competition: People who value a brand care less about price differences.
Many brands have chosen loyalty marketing as a strategy to improve their results, customer pressure, and sales.
Loyalty Marketing: Loyalty Program
Customers, if highly attached to the brand, are more inclined to purchase a product; the secret lies in knowing how to create impactful insights and offer solutions to satisfy any need of a customer.
It is important to build a customer's trust and show the brand personality, to maintain solid contact and communication with the customer.
To create a loyalty program and make people fall in love with your brand, you must:
- Find out who your customers are ( target audience) and what they truly want: loyalty programs start by offering discounts or earning points on purchased products, the customer wants to save somehow, so this is the first step to get noticed and begin a loyalty journey. The main goal of this strategy is to strengthen the relationship with customers, and to make this happen the first step is crucial to start getting to know them;
- Invest in customer attention: to create a loyalty program it is important to have an after-sales service suitable for every type of product, so as to explain and convince the customer to join the loyalty club, to support your business and your products;
- Choose different incentives from competitor: loyalty marketing programs differ from one another, it's important to conduct tests to understand which program works for your company by adapting all content and creating the perfect model for you!
Loyalty Models
As I discussed in the previous paragraph, it is important to choose the model that suits your company, we can list several:
- Points Program: it's the most traditional method, where customers accumulate points as they make purchases;
- Tiered Rewards: depending on how much you spend, you reach a set level; the more you buy, the higher level you achieve and consequently get more benefits;
- Hybrid Model: it’s a program based on the purchasing behavior of its customers, allowing them to pay online and accumulate points or stars to exchange for free products;
- Multi-brand rewards: associations between different products are very interesting, allowing customers to accumulate more points and more rewards.
If the loyalty marketing strategy implemented is effective, it will allow you to retain more customers, knowing that they are important to you and that you will never abandon them.
How to build an effective loyalty marketing strategy
To retain a customer means to satisfy their needs and wants regarding a product or service.
It is very important, however, not to forget about the customer after the first purchase but to always keep them in mind when it comes to offers and promotions available on the market.
To build an effective loyalty marketing strategy it is necessary to understand who your customers are and what they really want, investing all your attention in the customer's needs.
If customers are satisfied with the performance of your company, the completed purchase, and the always active customer service, feedback can only be positive.
If the customer is pampered and followed, they tend to buy more, essentially, loyalty marketing was created to reward consumer trust.
You can do it too, you just need a lot of commitment and an excellent marketing and sales platform.
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