In a 2010 study, Jupiter Research cited that 75 percent of American consumers belong to at least one loyalty program. These programs can promote brand consideration since consumers are always looking for ways to be rewarded for loyalty. Whether it’s through immediate savings, cash back or rewards incentive for future purchases, companies realize the benefit of incentivizing their customer base. However, there is an additional approach to consider that creates an added sense of loyalty in customers augmenting existing programs.
Businesses today, specifically those that rely on a strong brand appeal, are encountering a new breed of customers who are savvy, engaged, and, most importantly, connected. Social Networks have transformed the way these customers shop and communicate, and provide a platform to easily share their opinions with family, friends, colleagues and others. Today’s consumers are even more demanding, and much more critical of brands with grand promises that fail to deliver. As a result, they are empowered to be selective given that they have the power to choose easily and rely on a tribe of likeminded consumers to make their purchase decisions.
Beyond using the two basic types of loyalty programs, such as the rewards-based approach and/or promoting specialized offers to a select group, focus on forging a stronger connection with your customers at every touch-point thereby turning them into evangelists and advocates for your brand. Reward their loyalty with better customer experiences, whether it’s through product or service inquiry, purchase ease, recommendations, timely promotions or convenience.
Listening to your customers and identifying needs that are not being met, or obstacles in their experiences that have a negative impact to your brand and reputation, provides the opportunity to act on them. Just be sure to address the underlying problem through a self-nurturing feedback loop. The insight you gain may lead to fundamental changes in your value proposition, enhanced product/service opportunities or even your entire business model.
Just remember that loyalty is a by-product of the customer experience and not a result of specific programs. Trellist follows this guiding principle when developing loyalty strategies for our clients.