Implementing Loyalty Marketing Programs- 5 Proven Strategies to Get Started
What is Loyalty Marketing?
Loyalty marketing is a strategy that focuses on maintaining and expanding existing consumers by offering rewards such as gifts, discounts, and/or exclusive access. Customers are rewarded for their continuing interaction with, and loyalty to, the company through loyalty marketing campaigns.
Loyalty marketing isn't a new concept. In fact, it has been around since the 1700s. However, it gained momentum and captivated the public's interest only in 1929 with the advent of Box Tops, which used to print coupons on products that could be redeemed for rewards. Then came Frequent Fliers, one of the most well-known loyalty programs, in the 1980s. Card-based shop loyalty systems were very popular in the 1990s.
Nowadays, to create customer trust and keep frequent customers interested, businesses use loyalty marketing methods such as social media campaigns and referral programs. Using these strategies helps improve their earnings. Businesses employ people well-versed with loyalty marketing to communicate with existing consumers to keep the company relationship strong.
What Can Loyalty Marketing do for Your Business?
Consumers nowadays are tech-savvy and intelligent; they are constantly on the move, spending hours on their cellphones looking for fresh information. With so many alternatives available today, consumers value personalization from their brands more than ever before. If they can't find it, they move on to the next brand.
Customer loyalty programs, on the other hand, allow firms to interact with their most loyal customers through various sales channels and provide a constant means of influencing them with customized rewards.
- Loyalty marketing can help retain high-value customers. Returning consumers spend more and generate more transactions than first-time buyers. A shopper's fifth purchase in garments is typically 40% greater in value than their first.
- Loyalty marketing allows you to collect a lot of information about your customers, enabling you to provide a better, more personalized buying experience. As per research, 65% of customers are more likely to visit your restaurant when they receive offers tailored to their requirements.
- Customer loyalty programs help acquire new consumers by encouraging repeat customers to refer more individuals to your restaurant, resulting in increased sales. These referrals can have a substantial monetary impact for the customer as they can earn points for their effort.
- It automates direct marketing by allowing restaurants to offer promotional ads, upsell products and services, engage customers in contests, and offer them other rewards via push notifications, emails, and SMS.
Loyalty marketing programs are a great way to reward your customers for their loyalty, but how do you get started?
Implementing a loyalty marketing program can be tricky, but it doesn’t have to be. This article will show you how to get started with 5 proven strategies.
How is Loyalty Marketing Different from a Rewards Program?
Loyalty and reward programs are widely utilized to modify behavior in businesses all around the world. However, the distinctions between the two concepts is often blurry, which is why we've gone ahead and decoded the meaning of loyalty programs and rewards programs.
Customers who are already doing business with you are rewarded for each transaction through loyalty programs. They are rewarded for their loyalty, and the program protects them from being poached by competitors.
On the other hand, a rewards program aims at increasing sales when a consumer meets a goal. Businesses use rewards programs to provide more in order to earn more from their customers. An incentive system, rather than awarding customers with a gift card or discounts as a loyalty program does, usually provides them with a more valuable reward like merchandise or
a travel experience.
The final distinction is that a consumer is paid for every purchase in a loyalty program, whereas a customer is only rewarded after meeting a sales target or goal in a rewards program. The main distinction between the two programs is that loyalty protects clients, while rewards promote growth.
Loyalty Marketing Strategy No. 1 - Use Social Media
Use your social media networks to spread the word about your loyalty program's perks. It allows customers to stay in touch with your business daily. You can use social media to promote your products or services to your clients in a variety of ways by-
Customers may stay interested in your food if you post frequently. The more frequently you post, the more likely you are to reach out to new customers.
Giveaways, like rewards program, provide clients with something of value in exchange for their participation in your business.
Responding to feedback
Responding to feedback will create a personal connection between customers and your restaurant. This will improve customer experience and guarantee Restaurant Loyalty.
Loyalty Marketing Strategy No. 2 - Incentivize with a Rewards Program
Clients may be loyal to your brand, but they can easily switch to a cheaper or newer competitor. Loyalty is a fluid concept and you must always give customers a strong cause to return. That's why it's critical to have additional tools at your disposal to entice consumers.
There's no secret here- numerous businesses, from Fortune 500 giants to small businesses, have implemented loyalty programs to reward customers for repeat purchases.
Having a loyalty rewards program in place is a foolproof way of ensuring customer retention.
By offering birthday promotions and individualized product recommendations, a loyalty program makes customers feel special.
Loyalty programs are a great way to show your customers that you care about them as individuals.
Implementing loyalty marketing programs is the key to building customer relationships, not just customer retention.
Loyalty Marketing Strategy No. 3 - Request Feedback
When companies ask for feedback to improve products, existing customers feel valued. Sharing and responding to client feedback may also assist new customers in understanding how your firm has evolved over time. You can solicit client feedback in a variety of ways, including-
Sending emails to your existing customers is a direct and easy way to solicit feedback on a product or service. Make these emails short but informative, telling them why they received it, how long the survey might take, and why the responses are essential to your business.
Consider using your own mobile app to draw feedback from existing customers. To encourage them to leave a review, try offering them an incentive like online points.
Customers' responses can be gathered through social media surveys. Restaurants can conduct a survey and ask questions about their operations and food. Based on this, you will be able to know where to improve and what additions need to be made to your operations.
Loyalty Marketing Strategy No. 4 - Referral Benefits
Loyal customers are vital to a business because they act as brand ambassadors and bring in new business. Focusing on loyal customers and encouraging them to refer others will provide the results you want and position the company for long-term success.
Customers that enjoy a brand will automatically spread the word to their friends. This strategy can help you increase client loyalty while also attracting new ones. For referring a friend, some referral programs offer discounts or in-house credit, while others offer in-house gifts.
You'll see a rapid increase in digital engagement with your business if you provide customers with discounts, vouchers, and other prizes in exchange for sharing your content online, referring friends and providing honest feedback and product evaluations.
It can help-
- Generate higher lifetime value customers
- Boost customer retention
- Generate brand awareness
- Ensure Restaurant Loyalty
Loyalty Marketing Strategy No. 5 - Use Gamification
Gamification is another way of modeling a loyalty program. It simply means taking a simple, basic task and turning it into an enjoyable experience by including gaming elements to enhance customer experience.
For example, "Untappd" is a craft beer-focused mobile app where users can earn credits and certificates for sampling different beers, rating them, and submitting reviews on the platform.
Gamification can be used in a variety of ways, and it's an extremely powerful marketing tool.
According to a recent study by accountancy firm Deloitte, media organizations who successfully implement gamification into their marketing strategy saw a 30-40% boost in online client engagement. Not unexpected, given that the average millennial spends up to 96 minutes each day on their mobile devices playing games.
Building a customer loyalty program is tough. The key to success is choosing the right loyalty marketing strategy.
You need to identify your target market and find out what they want. Once you know this, you can build a loyalty marketing program that meets their needs.