Encourage Repeat Purchases With a Brand-Driven Loyalty Program
Brands have been using loyalty programs to encourage repeat purchases for years. The numbers speak for themselves:
- Over 90 per cent of companies have a loyalty program.
- Sixty-six per cent of customers say earning rewards changes their buying behaviour.
- Eighty-four per cent of customers say they’ll stick with a brand that offers rewards.
- Increasing customer retention by 5 per cent can increase profits from 25 to 95 per cent.
- Loyal customers are 5x more likely to repurchase, 5x more likely to forgive, 4x more likely to refer, and 7x more likely to try a new offering.
Traditional loyalty programs are usually centred around “earn-and-burn” points programs, exclusive access to products or services, or some combination of the two. But as consumer behaviour is changing, brands must re-think loyalty programs to continue to encourage repeat purchases.
Brand-Driven Loyalty Programs
For most loyalty programs, a customer makes a purchase and gets points. This POS-centred dynamic puts much of the power into the retailers’ hands. However, this relationship is in the process of disruption.
Firstly, with eCommerce and omnichannel, customers have many different touch points. In addition, advanced analytics provide brands with invaluable data on their customers’ buying journeys. Never before have brands had such insight into where, when, and how customers are interacting with their offerings.
Secondly, while 85 per cent of customers still value points-based rewards, nonfinancial benefits are becoming more popular. Many of today’s consumers are empowered by a sense of community. One option is to allow customers to donate their rewards to a charity of their choice. Others would like to connect with other like-minded members at exclusive events.
A loyalty program that resonates with customers emotionally can be powerful. A study found that emotions had a 0.75 correlation coefficient with loyalty compared to rationality and values at 0.53 and 0.49, respectively.
Encourage Repeat Purchases With an Effective Loyalty Program
It’s time to stop thinking about loyalty programs as something you tack on to the customer journey. Loyalty must be holistically integrated throughout the buying cycle, which will require creative solutions. The one-size-fits-all model is dead.
To begin, brands must be intentional with designing their loyal program, analyzing how loyalty plays a role in brand objectives, customer priorities, and financial goals. What specific customer behaviour are you trying to drive?
Brands have the data to understand the key touch points in their customers’ journeys. You can personalize communications, promotions, and rewards based on previous purchases, how close they are to redeeming points, or even for their birthday. Brands can make loyalty even more attractive with seamless application across all touch points.
We Know Your Industry
Marketsupport offers advanced analytics into the success of your loyalty program. We can also help spread the word online and in-store with the correct messaging. Modernize your loyalty program today!
To learn more, call 1 905 847 6513 or visit our new website.
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