Loyalty programmes have grown steadily in popularity over the years, both with consumers and brands. People of today expect brands, especially those in retail, to offer them consumer incentives and rewards in order to maintain their custom. And while this might seem a little presumptuous, it is true that having an incentive makes consumers more likely to prefer your brand over others.
If you are working on a marketing strategy you should be thinking about how to entice the consumer. While providing them with relevant and valuable content can work to an extent, a retail company does need a little something extra to retain their consumers. Not convinced that consumer incentives are right for you? Keep reading for just some of the reasons why consumer incentives are so beneficial.
Encourage Customer Loyalty
Consumer incentives can help your customers to feel more appreciated, which will encourage them to stay loyal to your brand. They are also more likely to connect emotionally with your brand, which is what the younger generation of consumers demand from brands today. This will ensure that your customers make repeat purchases from your business or store.
Another aspect of customer loyalty is that customers will have more patience if your online store experiences downtime or if your brick-and-mortar location has to undergo changes. An incentive programme will show them that you care about their needs as consumers, making it easier for them to understand these situations. Loyal customers are also more willing to give your brand positive reviews online and by word of mouth.
Definitive Data Collection
One of the major benefits of offering consumer incentives is that you are easily able to collect consumer data. For example, you might offer customers the option to sign up for an email newsletter and this will provide them with a R100 voucher for your store. This data can be collected and used for targeted marketing campaigns or for buyer profiles.
It is important to note that you will need to ask for permission to send email newsletters and other material to your consumers, but those who do allow you to send them this are interested and likely ready to make a purchase form your brand. Some consumers may be wary of providing you with their data, but if you offer them an incentive, such as a voucher or discount, they will be happier with providing this information.
Pretty Good For Personalisation
This ties in with the point above about collecting consumer data. Consumer incentives allow you to provide a completely personalised experience for your loyal customers. For example, if you are a boutique makeup company, you can use the information gathered from your customers to provide them with a customised landing page of special offers, targeted to their previous purchases.
You could also have an incentive where customers fill in an online profile and receive a voucher or discount for their next purchase. This information can be used to send personalised product suggestions and even free gift boxes on birthdays to further encourage their loyalty to your brand. If you are working with a digital marketing agency, you will know that personalisation is key to retaining and attracting customers.
Magically Measurable Metrics
Having consumer incentives allows you to measure engagement metrics, repeat purchases, and purchase frequency. Being able to measure this information will allow you to make intelligent decisions about your marketing campaigns and what products to upsell and which to promote to encourage more sales.
Repeat customer rate and repeat purchases are important metrics to measure, and if a customer has signed up for an incentive programme or newsletter, you will be better able to track this information. Knowing who is a repeat customer will also allow you to provide more incentives to retain their loyalty. Having measurable metrics will also show you which campaigns and products are performing well and which are not.
Improve Customer Communication
Having consumer incentives allow you to have a direct method of communicating with your customers. You can send them newsletters about events or new products that are upcoming, remind them about special dates and even let them know about any recalls. Better communication with consumers will also help with improving your relationship with them.
Having personalised communication also improves the chances that your emails and other marketing materials will be opened and engaged with. For example, sending a newsletter suggesting products based off of previous purchases will likely grab the attention of the consumer more than one which is simply a generalised email sent out to every consumer.
If you would like to boost customer loyalty, gather better data, and provide personalised consumer communication, consumer incentives are a fantastic idea. NetMechanic can help by providing a creative marketing strategy, so feel free to contact us today to find out more about what we can offer you.