Loyalty marketing is a term that has come to stay in the business world in recent times. How can you reward your consumers for being loyal to your products? Why should you even reward them? They need the products don't they? Even necessity products have competition. Water is necessary for survival. So many companies manufacture bottled water but there is competition even within that industry. If water company A offers rewards for customers who patronize their brand and water company B keeps communicating just the benefits of drinking water which company do you think would have an increase in sales? Provided both companies offer the same value proposition. I think Water company A would win consumers hearts with their loyalty rewards.
How does Loyalty Marketing help your Business?
Win back customers
For several reasons, your original customers stray and find other products due to a number of issues. The other products may be more cost effective or your company did not invest the resources in looking after these customers when they were purchasing your products. Whatever the case may be, the best way to win back these customers is to run a loyalty marketing campaign. This entices them with the offerings but more importantly, you give them a chance to reconnect with a product they once loved and depending on whether your company has put in the work to improve the product, you would have won their hearts all over again.
Build a Database of Loyalty
Do you think that company that supply you consumer information have given you enough data about your real consumers? If you run a campaign and have consumers potential and existing purchase your product, you know they were genuinely interested in the product. The information you acquire from running that campaign is more targeted because you know for a fact that these consumers purchased your product. Loyalty campaigns help your company build a targeted database and you can always approach these consumers when your company is launching a new product or you want to get real market feedback.
There are many other reasons why loyalty campaigns are useful for your business. It helps you build customer lifetime value amongst other things. Has your company run a loyalty campaign before?