What Is Loyalty Marketing? The Value of Brand Loyalty
Loyalty marketing is one of the most important and useful tools companies can use to keep their customers. Brands have used loyalty marketing for decades to retain customers, and it has been proven to be among the most effective ways to create a sustainable customer retention strategy. Cultivating a system focused on creating and maintaining a loyal customer base is an almost foolproof way to ensure that a brand will stand the test of time. Summarily, customers are the most crucial component of income structure.
Competition has almost always been a massive problem for companies. Odds are very good that no matter what product is being made, there will always be another company trying to make something similar, if not virtually identical, to another company’s product. Especially in the age of the internet and mass production, it is very easy for companies to get drowned out in all the noise of replicas, knockoffs, and third-party brands. Companies need to, more than ever, focus on making their brand unique, inspiring, and appealing to people in unique ways.
This is done through the process of loyalty marketing. It’s a system that focuses on trying to appeal to people’s emotions so that they feel at home with a specific brand. It can often be very easy to feel as though a product is just a product, and every version of it is replaceable. But creating unique factors in a brand can help customers to know that they should go to one specific brand. This can lead to massive success for a company, and help to ensure that they find great success in the modern world of business. This is what loyalty marketing is, and how it can change the game for virtually any company or business.
What is Loyalty Marketing?
Loyalty marketing is a marketing strategy that is built around rewarding customers for their continued and consistent support of a brand. This is usually done through incentives like discounts, exclusive deals, and company gifts. The whole goal is to produce a sort of relationship between the customer and the brand, and create a sense of loyalty in the customers. This will help to ensure that customers give long term support to a brand, and become more likely to choose that company over other similar options. This is a brilliant way to get customers in the door, and then keep them coming back.
Loyalty marketing has been consistently proven to help companies grow their customer base and revenue streams. In many cases, the companies with the strongest loyalty marketing programs are able to develop and grow their net income and revenue stream almost two and a half times faster than direct competitors. This is a massive difference, and that number alone is enough to cause any smart business to start looking at how they can start creating loyalty marketing programs.
Other research has shown that companies who have customers involved in their loyalty marketing programs are 77% more likely to experience long-term returning business from those customers. Establishing a system that builds customer loyalty will help to make sure that a company is much more likely to be sustainable in the long run. This is a huge part of being a successful business, and helps to ensure that customers consistently return to the company. Loyalty programs are some of the most valuable and useful programs that a company can use for marketing purposes.
Fundamentally speaking, existing customers are much more likely to buy products from a company than brand new customers. As long as their past experiences were good, they are more likely to purchase products from brands that they already have experience with. This is massively important to understand, and take advantage of. When customers who already know a company and naturally are more likely to buy from them get even more reason to return, the benefits can be very large. Loyalty marketing programs can be an absolute game changer for any company looking to increase their sales.
How Do Loyalty Programs Help Increase Sales?
Loyalty marketing programs can help in a very large variety of ways when it comes to being a business. First off, loyalty in and of itself helps a company to be on the forefront of a consumer’s mind on a regular basis. This is very important because when the customer thinks of a want or need, their default solution to that problem will most likely be the company that has created the most loyalty in them. Loyalty programs help to convince the customer that they should go to that specific company, because they will get the most in return when they give something to that company.
Loyalty programs also create systems where companies are often able to aim customers towards buying a certain product. When the rewards that are used tend to revolve around a specific product, customers will be more likely to want to come for that product. They will also be more willing to try that product for the first time, which can in turn create a more consistent customer base for the company in that specific area. Companies that use loyalty programs can help customers to try out new products, and go for things that they may not have gone for previously. This is vital to launching new products that may be more niche and on the edge for customers.
Loyalty programs also are very important for attracting new customers. When a customer finds out that a company has a program that rewards them for doing what they want to do, they become much more likely to come back and seek out a company. Rewards are incredibly valuable to customers, and can help them to want to come to the company initially. It increases the initial customer value proposition, and can become an incredible and innate part of the company itself. Loyalty programs add a lot to the actual identity of a company, and can ensure that customers can benefit from returning. It can often be hard to differentiate products themselves from other products, but when the company itself creates loyalty programs, customers begin to develop preferences very quickly.
How to Market Loyalty Marketing
Even though loyalty programs are marketing programs in and of themselves, they are still necessary to be marketed as products themselves. To do this, a company must make as many people aware of these programs as possible, so they are aware of the incentive to make contact with a company, and begin the loyalty relationship.
Showcasing the benefits of the loyalty program can be done in many ways, and each way needs to be intentionally identified to truly know which way is right for the target audience. This can be done through a variety of methods, including social media marketing, email marketing, word of mouth, and countless other ways. Intentionally focusing on which method will best suit the target audience is absolutely critical.
It often pays well to use influencer marketing to get the word out about the loyalty marketing program that a company has. Influencers show people exactly what the product or service really looks like, and can help incentivise consumers and customers to go to that specific brand, due to the shared experience of the influencer. Influencers generally share both the benefits of social media marketing and word of mouth marketing, and can be very valuable when it comes to marketing a loyalty program.
Also, understanding what the customers really want is a highly important part of loyalty marketing. If the rewards for investing their time and energy into a company are unimportant and lacking in value to the customer, they will be unlikely to really invest in them. Understanding what incentives will actually bring the customers through the door is absolutely essential for creating a functioning loyalty marketing program.
How Harper+Scott Can Help
When it comes to designing loyalty marketing programs, it is very important to do it in the right way. When done improperly, loyalty programs can feel ingenuine, and not offer customers what they really want. But when done correctly, they can lead to massive growth for the company. That’s why it’s incredibly important to work with professional and experienced marketing teams when designing loyalty programs.
That’s why Harper+Scott exists–to help companies truly master their marketing programs, and fully realize their potential in the marketplace. We have worked extensively with a large variety of top brands to maximize their marketing potential, and give them as much uniqueness and identity as possible. There are countless examples of Harper+Scott’s work that has been used by all types of businesses, with products that are consistently making a large difference in the world.
For any consultation, product design, or marketing needs, reach out to Harper+Scott for some of the highest quality services and products in the world.