Almost 90% of all consumers would switch their brand loyalty to a company that shares their values. About 50% of consumers have left a brand that they previously loved in favor of a competitor.
The best way to secure your brand and make sure your business doesn’t fall into the statistics above is to reach out to your current customers with loyalty marketing.
Having a good loyalty program will encourage repeat purchases and keep your company afloat during slow seasons. It also shows your customers that you care and it reduces business costs.
These are only a few benefits of loyalty marketing. Continue reading to learn more.
What Is Customer Loyalty Marketing?
Customer loyalty is the act of sticking with a company no matter what its competition may offer you. Cost and availability are of no consequence when you’re making your buying decision.
You love the company’s customer service and product quality so much that you don’t mind paying more or even waiting months for an item to come in.
That’s what customer loyalty plays on. It targets customers who are loyal to a brand to secure their business.
1. Limit Your Competition
Customer loyalty programs allow you to stand out from your competition. This is true even if your competitor’s products are cheaper than yours.
As long as your loyalty program brings plenty to the table, your customers will stick with you so they can build points and use them to save money on their purchases.
2. Show Your Customers You Care
There’s no better way to show your current customers that you care quite like giving them access to a loyalty program. People will feel good about supporting you if they’re rewarded for it.
If you give customers points that they can use on their purchases, it will make them feel like they’re saving money (even if they’re not).
3. Encourage Repeat Purchases
If customers build points when they buy products from your store, they’re going to be more inclined to pop in and make purchases. If your loyalty program has tiers, customers will add more items to their cart, so they can fly through your ranks.
Think about your favorite coffee shop. Many use punch card tactics. If you can get a free coffee by getting ten hole punches, you’re going to go almost every day.
4. Reduce the Impact of Slow Seasons
Let’s say that you run a flower shop. Your busiest times are going to be during gift-giving holidays, prom season, and wedding season. Any other time, business is going to be a bit slow.
If you have a quality loyalty program, that will encourage customers to pop in and buy flowers to keep you afloat until things pick up again.
This is especially true if a customer’s loyalty points have an expiration date. They’ll be encouraged to come into the store and spend the points while they can.
5. Make Customer Connections
Loyalty marketing does more than improve the customer experience. It also allows you to make connections.
For example, you have a deal going on that will allow customers to cash in 600 loyalty points to get a free gift. If you have a customer that has 590 points, you can reach out to them and let them know how close they are to the 600 mark.
You can send out a newsletter every month to show customers what they can get with their points. It’s all about keeping an open line of communication.
6. Reduce Business Costs
Pouring money into your marketing efforts in order to reach out to new customers can be draining. When you do manage to bring in a new face, there’s a chance that you might lose them to your competition because they’re not loyal yet.
Reduce the costs of finding new customers with loyalty marketing. Even though you’ll be giving out free stuff, loyal customers will have to spend money to get it. That sort of allows you to recoup the costs.
7. Make Customers Feel Like Royalty
If your loyalty program has tiers, you have the potential to make customers feel like royalty. They’re part of an exclusive club that only a select few are in.
This exclusivity allows them to get special treatment. When you extend sales to high-tier customers, it will make them feel like they’re getting an amazing deal. Lower-tier customers will spend more money in order to push themselves to a higher one.
8. Find New Customers
Even though loyalty marketing targets the customers that come through your doors every day, it can bring in new people.
If you have a good enough loyalty program, word will get around. Your current customers will tell their family and friends about your company.
To make sure customers are talking about your business, implement a referral program. Offer special deals for every referral.
9. Stay Relevant
If you’re consistent enough with your marketing, you’ll keep your company relevant. Good marketing can only take you so far, however.
Again, loyalty programs allow you to keep a conversation going with your customers. Reach out every week to keep clients updated on the number of points they have. Let them know what they can buy with their points.
Make sure your in-store associates ask new customers to sign up for your program and know that you can always learn more about customer engagement.
Start Taking Advantage of Loyalty Marketing
Nothing can keep a customer’s eyes on your company like loyalty marketing. It gets people talking about your brand and helps you stay relevant.
If you have a good enough loyalty program, you’ll stand out from your competitors and find plenty of new customers to keep your business afloat.
For more tips that will help you get the word out about your company, visit the Startup Marketing section of our blog.