How Loyalty Marketing is Shaping up Businesses of Today

How Loyalty Marketing is Shaping up Businesses of Today
Loyalty marketing is a strategic approach to marketing where efforts are directed towards identifying, growing and retaining existing customers. Fiercely competitive times of today demand that marketers aim towards reducing customer defection.
Inculcating a sense of a loyalty towards your products/services remains at the core of Loyalty Marketing campaign. It is something that will only happen gradually and will eventually result in bringing in more customer referrals. A sustained effort needs to be put in towards acquiring, retaining and engaging customers.
Loyalty towards a brand can only trigger when Customer experience is first-rate across all touch points. Customers judge a brand by the value they receive out of the association. Knowing your existing customers inside-out will help tailor personalized interactions and reward repeat purchase/visits. Implementing loyalty programs to monitor customer interaction with your brand is the best way forward to capture valuable insights related to customer interaction with the brand.
Advent of smartphones has made the task a lot easier for marketers. Mobile loyalty platforms are being extensively used today to instigate brand allegiance and drive customers into the stores. It is a win-win situation for both the brand as well as its customers. On the one hand, there are definite cost savings as there is no need to invest in printed formats of loyalty cards and discount coupons. Customers are not complaining either from a convenience standpoint as they just have to flash their mobile phone device at a Point of Sale (POS) to claim their offers.
There is no denying the fact that lifetime value of customer is something that cannot be uniform. Market segmentation helps identify customers that hold the potential for enhanced profitability for a brand. A loyalty marketing initiative such as mobile loyalty platforms must factor in the need to segment clients as per vital parameters such as purchase history, spending prowess, demographics, etc. It must also embrace precision marketing as a strategy to increase redemption value against their periodic offers.
Conclusion
Brand managers have started realizing the true potential that an existing customer holds vis-a-vis going on a customer acquisition spree. There is no value derived from spending a fortune acquiring customers as most of these relationships become unprofitable because of customer defection. Fostering a relationship with existing customers will create brand evangelists out of them, eventually resulting in the much needed viral advertisement for your products/services. Loyalty Marketing is an ace strategy up the sleeves of marketers of today. It can be put to practice by using new age customer acquisition, engagement and retention initiatives by way of targeted mobile driven customer loyalty campaigns.