To capture the attention of your target audience and make them loyal to your brand, you have to come up with innovative ways of providing value that is in line with your brand's mission.
With the online shopping boom still going strong and social media marketing becoming the norm, the average consumer is bombarded with advertising on a daily basis. So how can you ensure that customers not only notice your brand but remember it? The answer is a well-thought-out and efficiently implemented loyalty programme. Here are a few facts about loyalty programmes to illustrate their effectiveness in reaching and retaining customers.
37.5% of consumers are more interested in rewards than discounts
Consumers want to feel special. A great way to achieve this is through creative rewards, such as exclusive access to events and experiences. The experiential rewards market is booming, and companies are starting to notice. Consumers are actively seeking out unique experiences that they can share with their friends, which is why it’s no longer practical or even sufficient for brands to offer a 10% discount on the next order. Exclusive access is a great way for brands to guarantee loyalty and encourage repeat visits — because once consumers have experienced what it’s like to be treated like a VIP, there’s no going back.
80% of consumers claim they’d be more likely to give a brand their business if the brand used their customer data to provide them with a personalised customer experience
When it comes to loyalty programmes, one size no longer fits all. Today’s customers expect a brand to understand their individual needs and provide a tailored loyalty programme. Whether they interact with the loyalty programme often or just once, brands need to give customers rewards that fit their specific tastes and interests. To drive genuine loyalty, brands need to pre-empt what customers will want next, making use of purchasing trends and using that information to offer the perfect reward.
73% of consumers are most likely to recommend your brand if they belong to your loyalty programme
Keeping customers happy with loyalty programmes can be challenging, but it's always worth the effort. Loyalty programmes offer a tangible way to incentivize repeat purchases, and a good one will reinforce your brand image as a company that people can count on. The brands that are best at rewarding customer loyalty have more loyal customers, more positive brand perception, greater customer satisfaction, and a lower cost per acquisition. They're also more likely to get repeat purchases and spread positive word of mouth.
75% of consumers are more likely to make another purchase after receiving an incentive
Incentives are powerful tools that businesses can use to capture and maintain customer loyalty. A properly executed discount, free product, or special offer can help businesses keep their customers happy and engaged. The key is to make sure that the incentive comes at a time when the customer is about to abandon an order - for example, during checkout. This way, businesses will have a better shot at keeping the customer from abandoning an order (and thus making a sale).
A 5% increase in customer retention can increase profits by up to 125%
Creating a strong community is the best way for businesses to both retain and attract new customers - and that means building relationships with customers that span beyond one sale. One-time customers aren't going to fuel the continued growth of your business, and you need to renew their interest every now and then to keep them coming back to you. Retaining customers is crucial to your long-term success because it allows for greater reach into the market. Rewarding customers for their loyalty and encouraging them to come back is an effective way to demonstrate that you value their business.
52% of consumers are happy to have retailers know their purchase history if it gives them access to rewards, discounts and other offers
Customers are more willing to engage with brands than ever before. Even so, there is still a healthy amount of scepticism around shopping habits and customer data - namely, that information shouldn't be shared with other companies or used against the consumer. Exclusive offers and rewards are one of the best ways to incentivise customers to share their data. And why shouldn't they? If a brand is offering them something - such as an exclusive discount, sale, or promotion - it's likely that there's a return on the sharing of their personal information.
61% of consumers subscribe to SMS messages from brands purely for incentives, coupons, or rewards points
The rise of technology in consumers’ lives means that companies must be present where their customers are - and consumers spend a lot of time on their phones. With text messaging now an established tool for communication, brands can engage customers in a way that makes them feel truly special. The majority of consumers are happy to get messages from brands they like, as long as they are personalised and offer great deals and exclusive discounts.
Brand loyalty is no longer a given - it’s something that businesses have to earn. While other businesses struggle to obtain customer loyalty and encourage repeat purchases, you can implement a surefire way to retain happier, more engaged customers simply by offering them rewards for their loyalty. Not sure where to start? Chat to a Randgo consultant today to learn how a tailor-made customer incentive programme can benefit your business.
