How Loyalty Marketing Can Save Your Business

How Loyalty Marketing Can Save Your Business

By Holly Millar Tags: Loyalty, Promotions

Is your business struggling to successfully engage customers? You need to implement a loyalty program.

In this article you will find 6 Loyalty Program Ideas.

According to a recent article by eMarketer, the dwindling restaurant industry is turning to loyalty marketing to save their businesses and drive customer engagement.

But even if you aren't struggling to sell burgers, you should take the hint. Loyalty programs work.

67% of loyalty program members agree that, all
other factors equal, they will buy from a retailer with a loyalty program over one without (Nielsen)

Even the smallest brick-and-mortar businesses have an online presence today, and with that should use promotion marketing to effectively engage customers.

Digital loyalty programs are an incredibly powerful tool for influencing purchase, acquiring customers, driving customer engagement and satisfaction, and increasing ROI.

eMarketer research states that 86% of Millennials consumers prefer special promotions and discounts, followed by 74% who prefer coupons, with a close 73% of respondents who prefer loyalty programs.

eMarketer statistics for types of influences

Regardless of your industry and business goals, customer-centric marketing is your best strategy in today's competitive marketplace.

Customers will change brands just to get a discount, so you need to be smart with your loyalty marketing and promotion strategy.

69% of brand loyal shoppers will switch brands based on a discount notification they receive on their mobile device (Valassis)

Today you have access to CRM data and software to personalize your marketing - that means your promotions should be targeted and effective to actually increase revenue.

So where do you begin? First, you need to integrate a promotion engine to support a powerful loyalty program, then choose your preferred program structure.

6 Types Of Loyalty Programs

  1. VIP Program: Members must sign up (maybe even pay) to get exclusive access to special products, features, events, benefits, etc.

  2. Points System: Members collect points with every purchase and can use points to make future purchases.

  3. Coupons/Discounts: Customers get special rewards via newsletter, email or when they log into their account.

  4. Card Club: Simple reward structure where customers "punch" a card and after a certain number of purchases over X€ and get the 10th purchase for free.

  5. Spending Rewards: Customers who spend a certain amount or make a certain number of purchases are rewarded with customized rewards.

  6. Tiered Program: Members can get access to more rewards when they spend different amounts within specified levels.

These are just a few ideas to get you started, you need to determine what loyalty program suits the needs of your business.

Every business is unique with its own set of marketing goals, but customer engagement and retention should be top priorities. To succeed in those areas, a well-executed loyalty program can really help.

If you have the right promotion solution in place, you can launch effective loyalty programs like these that actually increase your sales and customer engagement.

Want to learn more about what's possible with loyalty programs? Leave a comment below or get in touch!

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