Loyalty Marketing: One of the biggest goals of every company is to have a base of repeat and loyal customers who always think of your brand when they need a particular product or service.
Achieving this feat, however, is a complex process. Investing in relationships and connections is necessary, mainly through loyalty marketing.
If you still need to learn how to win over your customers to make them big fans of your company, understand how loyalty marketing works and some actions that can provide a good experience for consumers.
After All, What Is Loyalty Marketing?
Loyalty or loyalty marketing is a Customer Relationship Management approach focused on transforming occasional customers into recurring customers.
The main objective of loyalty marketing is to strengthen the relationship with the customer base, making them continue to consume the brand’s solutions, consequently increasing the company’s revenue.
See below for some advantages of investing in marketing to retain customers and implementing practical actions.
Why Invest In Marketing To Retain Customers?
Conquering new customers is essential, but establishing a good relationship with the current base is even more powerful.
This is confirmed by the Gartner Group, a company specializing in research and consulting. According to them, 80% of a company’s future revenue will come from 20% of existing customers.
That is, customers who already consume your solution or product are most responsible for the financial gains of a business.
However, this is only possible in an organization focusing on retaining customers and developing loyalty marketing strategies.
Once the company commits itself to work on communication and relationships with those who already know its business, some advantages can be perceived:
Cost Reduction
One of the best-known data on loyalty marketing is presented by Philip Kotler, one of the most respected contemporary authors in marketing. According to the author, acquiring a new customer costs 5 to 7 times more than keeping an existing one.
This means that when selling to a customer who knows your service and trusts your company, acquiring a new customer is no longer costly and becomes profitable. The chances of completing the sale are even more significant.
This goes for both financial values and the investment of time and effort. After all, when investing in customer loyalty strategies, your team does not need as much energy in the first stages of the commercial process.
Increase In Profits
The basis of loyalty marketing is customer retention based on consumer experience. When a customer has a good experience with a company, it is more likely to invest in new solutions from that organization.
Therefore, in addition to facilitating sales, loyalty marketing guarantees negotiations that are not based on price but on the value that the brand, product, or service has for the customer.
Don’t believe it? So, see some data from Dimensional Research that proves that investing in loyalty marketing and relationship marketing with the customer base can directly impact an organization’s profit :
- 52% of people confirm that they continued to consume products and services from a company after a positive experience;
- 51% said they would recommend the company to others;
- 59% would only do business with the company after a bad experience.
Enough reasons to invest in customer loyalty marketing. So, check out some actions below to help retain your current consumer base.
Three Practical Actions To Implement And Retain Customers
Now that you know what loyalty marketing is and its benefits, learn some simple tips to implement that can make all the difference when winning over a customer.
Invest In Personalized Communication
Personalization may seem straightforward, sometimes even indifferent, but it is a big difference when discussing loyalty marketing.
Given that the company works on human and personalized communication, this strategy will make the customer feel special and that he is essential to that business.
To succeed in this action, however, you need to know your audience very well, understand their needs and desires, and establish a relationship. Thus, you can develop emotional communication that leads to softer decision-making.
To do this, collect information from your customer base and offer useful messages, reminders, and content to facilitate the daily lives of those using your solutions. Harness the power of social media like Instagram, Facebook, and LinkedIn to connect and strengthen that relationship!
Remember that loyalty marketing is focused on generating value for the consumer and establishing a connection.
Implement A Customer Marketing Sector
It is only possible to talk about loyalty marketing by mentioning customer marketing. That’s because establishing a relationship with your customer base is critical to building customer loyalty.
And that’s what customer marketing is all about: improving current customers’ experience, so they keep investing in your products or services, hoping to retain them longer.
A company that already understands the importance of preserving its customer base knows the value of current consumers for business growth, so it invests in loyalty marketing actions.
For this, you can keep your base updated with relevant subjects, as well as information about new products, tools, promotions, etc.
In this way, in addition to deepening the relationship between customer and company, you increase the chances of transforming your base into true advocates for your brand.
Create A Loyalty Program
Finally, our last example of actions to build customer loyalty is loyalty programs. In general, when we talk about loyalty marketing, the first strategy that comes to mind for most people is reward clubs.
After all, is there a more innovative strategy than offering benefits so that the customer buys from your brand again?
Think of airline miles programs, for example, in which the more people use their credit cards, the more points are accumulated that can be exchanged for products or even travel.
This action is widespread in companies that operate under the B2C model. Still, the B2B brand can use the benefits program as an action to strengthen the relationship and boost sales.
Also Read: How To Create An Effective Email Marketing Campaign?
