Access to this information enables you to develop innovative and effective strategies for improving your loyalty programme, but also your brand on the whole. Digitising your reward programme means you can view real-time data about how your customers engage with your programme and your brand as a whole.
Loyalty programmes should be designed to offer maximum benefit to your customers, but also to your brand. Loyalty programmes deliver customer insights
#Have built a loyal client base free
These are products that beat-out free competition more or less solely based on loyalty programmes tied to lifestyle/emotionally triggering messaging.Ĥ. Remember, people actually pay to use credit cards. If you are unable to budge on price or other differentiating factors, you can gain a competitive advantage with your loyalty offerings. Of course, your loyalty programme can also be a unique selling point in and of itself, especially in a saturated marketplace. Ultimately, although customer acquisition has historically been expensive, if you have the right loyalty programme and advocacy system in place, expanding your customer base has never been cheaper. There’s strong evidence to suggest that referred customers are more loyal, more profitable and have lower churn rates than non-referred customers. With a well-designed loyalty programme, you can gamify and incentivise referrals, rewarding customers who invite new shoppers. A McKinsey study showed that referrals generate two times the sales of paid advertising. In fact, 83% of consumers place more trust in personal recommendations than any other form of marketing. In the age of eCommerce and online review websites, positive customer word-of-mouth is essential to attracting new customers. Loyal, satisfied customers are one of your most powerful marketing tools.
It can also help you get new customers in the first place, which brings us to… Building a relevant, engaging reward programme means you can designate fewer resources to traditional advertising efforts and spend more time building valuable, long-term relationships with existing customers. It’s also a cost-effective approach to driving sales. Incentivising customer loyalty via a programme can help you avoid high churn rates and hold onto high-value customers. If you don’t retain customers, you will just replace customers as they churn. Although marketing efforts aimed at reaching potential customers are essential for growth, retaining customers is where the long-term value resides. Existing customers are 50% more likely to try a new product and spend 31% more per purchase than new customers.
It costs five times as much, on average, to acquire a new customer than to retain an existing one. It’s reported that NikePlus members spend four times more than non-member shoppers. Nike’s programme has been wildly successful.
#Have built a loyal client base Offline
Members use Nike’s branded app to access birthday rewards, member-exclusive products and content, offline event invitations and online workouts. If you can partner this with personalisation, the impact is even larger.įor a great example, take NikePlus - Nike’s mobile loyalty programme. Curating a host of third-party promotions (access to restaurants, cinemas, spas and retailers) can create a community and ‘lifestyle’ perception that will help emotionally connect customers to your brand. However, a creative approach to the offers made can do more. But there is something deeper going on here, and the emotional connection that loyalty programmes foster can be even more important.Ī loyalty programme will help build emotional commitment through repeat behaviour. On the most basic level, that is done through incentives. Loyalty programmes drive sales and increase customer lifetime value. Loyalty programmes build an emotional connection Yet, only 18% of businesses focus their efforts on customer retention.ĩ5% of consumers want companies to find new ways to reward them for their loyalty, hoping for customer loyalty isn’t enough in 2020. 95% of companies report that their loyalty members spend more annually than non-members, and almost 50% of consumers actively admit that this is true about themselves. The average repeat customer spends 67% more in month 31-36 than they spend in month 0-6. Nearly 6 in 10 UK adults believe that brands should offer loyalty programmes, and almost 60% of internet users cite ‘earning rewards’ as one of the most valued aspects of the retail shopping experience. A well-designed and well-executed loyalty programme can help you retain existing customers, attract new customers, reduce turnover and drive profits.
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