Gaining new leads isn’t easy, and keeping the existing customers consistently engaged isn’t easy either. The key motive for any marketer should be to acquire loyal customers as they not only bring more profit to the business but also potentially reduce the operating cost for most businesses. The concept of Customer Loyalty goes beyond the idea of simply ensuring that your customers are satisfied with what your brand has to offer.
The importance of Customer Loyalty Techniques
- Well strategized and efficiently implemented customer loyalty techniques positively increase brand advocacy. If loyalty is achieved, brand advocates often go out of their way to refer your brand to people they know or often write an honest review on a brand’s product or service based on their advantageous and favorable shopping experience.
- The importance of Customer Loyalty techniques is indispensable when it comes to setting the price of products. When loyal customers get habituated with your product and service, they tend to buy the product anyway. Most customers look for convenience, familiarity, trust and reliance, and the key is to accent on customer satisfaction and ease over anything else.
- The best part about the successful execution of the right loyalty techniques is that it brings in more leads to the business, and hence it single handedly takes care of both customer retention and acquisition. These undeviating referrals have a constructive impact on your sales, as they need no additional charges for advertising or marketing and are simply based on Word of Mouth referrals.
- As these techniques help in the achieving of loyalty, it indirectly helps in the boosting of repeated buying, re-selling and up-selling. Loyal customers not only refer to your brand to other people, but they know your brand and hence they are willing to take chances and give your brand the opportunity to implement new measures.
- Ultimately the implementation of these loyalty techniques help the brand predict sales, potential customers, opportunities and probable crises. Apart from helping to secure customer loyalty, loyalty techniques if implemented with the right strategy helps brands identify the pointers that they need to give more attention to.
Top 5 Customer Loyalty Techniques
- Personalization– Conscious consumerism has gained a new meaning. Customers not only demand high quality products and considerable pricing but also crave constant validation from brands to stay engaged and aligned with the business for all meaningful reasons. Personalization is one of the most effective techniques to keep customers tied to your business through the bonds of transparency, honesty and authentic exchange of information. By identifying common patterns and important value propositions, brands can implement personalization into loyalty incentives to make Loyalty Programs more successful.
- Gamification– Customers love being challenged. It gives them the opportunity to prove themselves and get their hands on exclusive products and gifts. Similar to that of challenge-based-program, gamification allows customers to unlock different levels to win enticing gifts. The efficient application of the gamification strategies can help customers stay happy and engaged with the brand. With visual quizzes, leaderboards, scratch cards, reward calendars and other exciting gamification methods, customers can acquire a feeling of accomplishment that will further help them build a positive connection with the brand.
- Reward Programs– Reward Programs make customers feel recognized, important and valuable to the business. A well strategized reward program has the power of changing the course of the business by increasing customer retention, sending referrals to bring new leads to the business, and boosting growth by bringing more profit. The most important attribute of a reward program is that when a brand rewards its customers for achieving a certain milestone, it automatically distinguishes the business from its competitors and ultimately creates a progressive brand image.
- Referrals– A study mentions that almost 65% of new leads arrive from word of mouth marketing. Referrals are given away by loyal customers who have faith and trust in a brand. When customers refer to a brand’s product or service, it automatically creates a sense of credibility as the advertising is purely unbiased. Creating an opportunity to engage in a conversation with new leads, referrals help brands in building a solid customer profile and at the same time saves the heavy expenditure otherwise needed for marketing and advertising.
- Feedback loops– If your brand opts for a strategy that aims on placing customer needs as top priority, then paying attention to customer feedback can bring noticeable changes to your business in a rather short span of time. Feedback is essential as it forms the most authentic proof to the effectiveness of your loyalty program.
Successful examples of Customer Loyalty
- Starbucks– This US based brand did wonders with something as basic as coffee and transformed it to the world’s largest coffeehouse chain. To what does Starbucks owe its massive success? Apart from the multiple other things, the brand’s loyalty program has set a benchmark and has given an example for other competitors to follow. By introducing several smart tactics, like for example, the reward loyalty card which enables customers to keep claiming rewards, and redeem points, to ultimately get the personalized reward card. The most enticing attribute of it is, every time the card is used, customers get the opportunity to order free drinks and redeem more discounts on other offers.
- Sephora– In the history of brand loyalty, Sephora’s loyalty program known as the “Beauty Insider” program has enabled the brand to get overnight recognition and secure a permanent position amidst the top brands in the marketing arena. The loyalty program was initiated back in 2007, when it was exclusively strategized for the loyal customers to assure them a favorable and seamless customer journey. Following a tier-structured program, the brand makes sure that it keeps on upgrading in order to be more attentive to the large customer base. The latest update of beauty insider has enabled customers to get their hands on best offers that are exclusively available both in-store and online. Also with the new Beauty Insider Cash policy, customers can exchange their loyalty points with cash and buy products that they have always desired to!
For over 10 years, Annex Cloud has been the worldwide leader in technology and service solutions that transform customer loyalty experiences for organizations, extending valued customer engagements, and providing industry expert advice on utilizing appropriate customer loyalty techniques to power successful loyalty programs. Powered by the comprehensive and scalable Loyalty Experience Manager™ solution suite, Annex Cloud customers capture and use zero and first party data to seamlessly deliver hyper-personalized experiences across the entire customer journey – from awareness to purchase to retention, loyalty and advocacy. The company is recognized by industry respected organizations like Gartner and Forrester and integrates with over 100 market-leading technologies. Get in touch with us today!