Have you ever thought about how to get your satisfied customers to come back to your business the next time they make a purchase? Loyalty marketing proposes a series of keys to achieve it successfully. We tell you what it is, why it is important and how to apply it in your business.
Loyalty marketing involves generating a lasting relationship with customers through a series of tools that turn them into regular consumers and promoters of a brand.
Through this strategy, a company decides to reward customers for their loyalty and in return, they come to the business again and again to satisfy their needs.
Loyalty marketing gained notoriety from the 1980s, with travel points programs being a paradigmatic example. From the digitization of these initiatives, customer loyalty strategies have made a real qualitative and quantitative leap. Thus, Accenture estimates that 77% of customers participate in a loyalty program in retail today.
Some typical examples of how to build customer loyalty include loyalty cards in supermarkets that accumulate points and discounts as the customer returns to consume in the establishment or punch cards that, after several drinks, offer the customer a free reward.
The acquisition of new customers has economic and personnel costs, which can be minimized through customer loyalty strategies. Moreover, the Invespcro portal calculates that it costs 5 times more to attract a new consumer than to retain someone who has already become a customer, while the Harvard Business Review increases this percentage to 25%.
The digitization of loyalty marketing means that companies can track the consumption pattern of loyal customers, generating valuable data. This information can then be used in market research, as well as personalized rewards, by presenting offers on products that they already consume.
Cross-selling consists of offering products similar to those that a customer has already consumed or shown interest in, while up-selling involves the sale of products or services of greater value than the previous purchase.
These are two commercial actions linked to loyalty, since when customers already know the brand they are more willing to spend on it, to the point that according to the strategic consultants, a 5% increase in customer retention translate into a 25% increase in profits.
A satisfied and loyal customer is more likely to share their positive experience with their immediate circle, on social networks, or review portals.
In this way, you become a brand promoter that generates effective word-of-mouth marketing and increases brand recognition, reputation, and interactions. This gives a business the opportunity to acquire new customers.
Before wondering how to retain customers, it is essential that companies focus on providing an exceptional customer experience, in addition to an attractive product. The reason is that a loyalty program is not going to get consumers to buy a product that they consider substandard or for which they have received poor quality service.
Similarly, a quality product or service is not synonymous with knowing how to retain customers. To do this, there are a series of strategic actions that any company can implement.
The Customer Centric business (Internal link ‘Customer Centric Strategy’) analyzes what needs the customer has and makes sure to become the company that can solve them.
This ranges from generating a simple and pleasant shopping experience (whether in a physical store or in the online environment) to demonstrating excellence in after-sales service.
Some digital solutions, such as the incorporation of chatbots or CRM platforms, can simplify and automate these actions.
There are various alternatives and examples, such as establishing a points program in which customers receive prizes or special offers based on their consumption; surprising the customer with an unexpected gift for their loyalty; or designating special clients or VIPs, rewarding their loyalty.
It is about maintaining regular contact with customers, showing them relevant content, and, in a way, creating and nurturing a community with them, where they can solve all their needs.
In this way, loyalty marketing is about generating valuable interactions with the customer so that the company stays in their mind when they make a purchase again.
Through indicators of customer satisfaction (Internal Link ‘x indicators to measure customer satisfaction) such as the CSAT survey or the Net Promoter Score, you can monitor what opinion your customers currently have and optimize the areas for improvement to continue improving in loyalty.
