It seems almost impossible to promote a product when you have no control over its point of sale (POS), right?
Well, not quite. It seems impossible, but it’s actually quite achievable if you choose to deploy the right combination of marketing activation ideas to make your product stand out in today’s saturated market.
There’s no denying that the market is full of great products and services, and with the cost of acquiring new customers up 60% in the last six years, it’s important more than ever to put your marketing budget in the right place and invest in a strategy that will increase your returns on investment (ROI).
The best way to do this is by capturing every time your consumer buys your product through a loyalty program that works, because not only will it increase your sales, it will help solidify your consumer base and give you valuable data to boost your business above your competitors.
Why choose loyalty programs?
Loyalty programs have now become an expected aspect of the customer experience. Research shows that customers spend 67% more when they are part of a customer loyalty program, and so investing in a loyalty program is a guaranteed way to increase your sales and revenue.
Data shows that increasing customer retention by only 5% can improve profits by 25% to 95%. Loyalty program apps and loyalty program platforms help customers feel recognized and seen, by creating a personalized shopping experience for them.
A comprehensive loyalty program that works makes customers feel as if their business is always appreciated, helping them build a personal and emotional connection with the brand that surpasses the transactional superficiality of the customer shopping experience.
By giving you a direct line of communication with your customers, you can then use this to your advantage by keeping in touch with them about the latest offers and additions to your store. For example, if you run a cosmetics business and you just launched a new range of make-up products, you could use your customer loyalty program to target relevant consumers, giving them a first opportunity to purchase these products or giving them discount codes or attractive bundles they can purchase from.
The happier a customer is with their experience, the more likely they are to come back for more each time. This is what a loyalty program that works looks like: it increases sales, but more importantly, it helps you retain customers. This is especially important when you have no control over your point of sale: you can do nothing to aid the real-life shopping experience, but you can do wonders from afar just by giving customers something to look forward to.
Not only so, but using a loyalty program makes acquisition management, customer experience management, and customer loyalty management all the easier for you, because these programs give you a window into your customer’s consumption habits: how often they shop, how were they onboarded, which products they have a preference for, the lifetime of their cart, etc. This data is key to understanding your customer’s journey. It will give you great insight into which acquisition channels at the retail stores are working & which aren’t. Furthermore, this valuable data will help you improve your loyalty program and conduct your business from afar, without ever needing to control or influence the point of sale.
It could also be a great way to attract new customers in several ways, whether it be marketing or via word of mouth. Just think of it: happy customers feel valued and appreciated, gain valuable points or rewards, and overall feel as if the brand is giving them a great shopping experience, and so they go ahead and spread the word to their friends and family. You then have people flocking to your loyalty program just because of a few happy customers.
More than anything, a good loyalty program could be the unique selling point that sets you apart from your customers: referral rewards or points systems coupled with a personalized shopping experience is sure to put your competitors in a panic.
Talk with one of our Loyalty experts today if you’d like to know more on how to maximize your acquisition, improve your retention and build loyalty in the long term!
