In a very competitive market, businesses are looking for innovative ways to draw the attention of their customers. One of their solutions is loyalty promotions marketing, which presents loyalty programs to raise the number of repeat customers. It has been used by businesses for more than 30 years already where they offer incentives, such as cash back for purchases over a given amount or earning points to get a free food item.
Loyalty programs do not only help to boost sales but also to retain customers and provide useful data regarding customer behavior. The programs can even earn new customers while raising the spending of the already existing customers. As a result of these, businesses keep finding ways to expand their programs and get better results for their company.
With loyalty marketing, their programs are intended to attract the already existing customers. However, they fall short to draw the attention of the competitor’s customers to become their new customers. They offer similar rewards and they do not differentiate themselves from the others.
There are numerous ways to boost your presence in the market with different compelling and innovative programs. The one-product-suit-all mentality is already gone when talking about establishing customer loyalty. Loyalty marketing has found ways to design programs that can drive customer loyalty by providing valuable and specific incentives and membership rewards program.
To design unique loyalty programs, it is important to combine loyalty into the entire experience. Shoppers feel the honor when they are recognized as one of the frequent customers of a store. Such recognition is made tangible by presenting special offers that are just meant for members. Avoid having non-members gain access to rewards and discount because it will only reduce the appeal. Exclusive special offers to members can help out to attract new customers to avail of the program. The rewards can come in the form of points to be used for a specific item and it can draw people who just shop for pleasure. They can have reduced prices as well for those motivated economically or provide access to checkout counters or priority lines to those want to spend less time while shopping.
Oftentimes, shoppers change their spending behavior with the kind of reward that can be of value to them. It will simply devalue the whole program when they need to earn a huge number of points to redeem an unimportant reward. Hence, it is essential to take care of the value to the customers when designing a loyalty program where the value of the reward must not be higher than its cost.
Companies go on to explore loyalty marketing and find ways to set themselves apart and their programs from their competitors. The success of your strategy very much counts on the unique design of your programs compared to its competitors. Yours should segment customers to identify them individually, and most important, to establish new and broader contact with your customers.