3 Secret Reasons Why Your Brand Needs a Rewards Program – News Couple
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3 Secret Reasons Why Your Brand Needs a Rewards Program


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As brands are constantly inventing new ways to interact with their audience, customers are accepting new technology faster and faster. They expect a higher form of relationship with their brands – customer service won’t cut it. To succeed, you need to create an engaging customer experience.

The best way to do this is through a loyalty or rewards app. They get the customer engagement that brands need to stay financially sound and relevant to the community. But aside from just keeping your customer base engaged and happy, having a rewards app or loyalty program is integral to the ways customers don’t realize, and you get more than just engagement if you can hide your followers for using your rewards app.

Here are the benefits of the loyalty program that go beyond customer satisfaction.

They set you up for long-term success

Starting with the obvious, having a customer loyalty app prepares you for repeat customers. When you add a competitive and attractive element to your marketing, such as a points system, customers who are already part of your brand will begin to engage at a higher level.

Case in point: In 2016, Starbucks reformulated its Star Points rewards system to award stars based on how much money a customer spends on a single purchase. Starbucks customers may not need to upgrade to venti, but the rewards program encourages them to get a little closer to winning a free breakfast sandwich.

Almost everyone loves competition, even if they are only competing with their will to not have a bigger coffee. But these bonuses not only attract the competitive nature, but they also sow future sales without your customers even realizing it. When they only have 2 points to win a free sandwich, suddenly there’s value in coming back to your coffee shop, not just the one that’s most convenient for them.

Related Topics: Which Hotel Loyalty Programs Are Best for Business Travelers

They help grow your business with referrals

The first stage of running a successful business is chasing down and keeping customers. Without giving you their money, your business ceases to exist. The second stage is the stage that, unfortunately, many companies do not reach: attracting existing customers to attract more customers.

Having a loyalty or rewards app turns all users into unintended referrals. Think about it – what would you do if you liked a particular restaurant, store, or even some kind of shoe? Tell your friends about it. Through the application, it is easy for one customer to summarize and prepare their friends for your business, effectively warming up the sale for you. Having a rewards app won’t seal the deal, but it will add credibility and make the new customer see what all shoppers want: the ability to get free stuff.

Referrals cost you nothing and often do a better job of bringing in new business than the best marketing campaign because humans trust people’s authentic words on any kind of ad. Once you refer them, they will come to you with the app already installed, some confidence already in their mind and a greater willingness to spend their money.

Related topics: McDonald’s just launched its own loyalty program. Here’s how to make you succeed.

They provide you invaluable customer data

Finally, let’s discuss the real value of adding a loyalty app, or any tech-enabled component. When you have an app, email list, or text list, you can access valuable customer data that allows you to gain more information about the demographics of your audience.

How often do top users interact with the app? What is the most popular bonus? How often do certain customers make a purchase? What is your most popular product? What products do your highest dollar customers buy? What is the breakdown of your customer base by age, location, and job role?

These are all excellent things to know as you try to gather information about your audience, and loyalty app is the best way to do that. With their continued participation, you will have ongoing data that you can use to inform your campaign as you go forward.

Digital marketing is not just about getting X number of likes on your Facebook posts or sending Y number of emails. It’s about finding the angle that will get most people to convert. Humans have innate desires that they are often completely unaware of, but they are still valuable tools used by marketers and salespeople.

That little rush of endorphins someone feels when they find they’re only one visit away from their free iced coffee? That’s the love of competition – and you can market that. When a customer makes coming to your store every week just another part of their routine? That’s customer loyalty — and you can market for that, too.

A good marketer will create multiple avenues for success and conversion – and a strategic marketer will make sure all of these avenues are connected and set up their campaign for future success.

Related Topics: The Marketing Power of Rewards Programs



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