Loyalty marketing is one of the most successful promotional approaches that have been used over the recent past. It is a marketing approach based on strategic management. A company using loyalty marketing focuses on growing and maintaining existing clients through different incentives. Customer proposition is the most important feature in loyalty marketing.
Branding and product marketing are also very crucial in loyalty marketing. This is because the most subjective assessment by clients plays a crucial role in determining whether they will purchase a specific product or not. Therefore, there must be an integrated combination of value from each of the loyalty marketing discipline if a campaign is to be successful.
Loyalty marketing has also been expanding over the past years. The expansion has been very successful from just a mode of conducting a business to a vehicle of marketing. It has also become an omnipresent marketing strategy for different organizations over the past years.
Fred Reichheld is one of the newest and successful loyalty marketing insiders. Reichheld have claimed a strong link between loyalty marketing and consumer referral. In the recent past, customer advocacy marketing has also been used with the strategy to build a strong client base.
To many clients and the general public, many hotel guest programs, credit card programs and airline miles programs are often used to create the best links. They are incredible based on the fact that they build a lasting impact in the minds of target prospects.
Benefits of using loyalty marketing programs
It has been proven that obtaining customer information can be quite difficult. However, a business person can use different loyalty programs and techniques to build the best client relationships and reap the benefits including
- Increase in the number of existing clients
- Acquire new and the right clients
- Retention of existing clients and enhance their natural churn rate
- Profit mix is also one of the benefits that come with the use of loyalty marketing programs. It allows for shift spending to the best and higher margin products.
- These benefits are also vital because they help to grow a business and to form a strong base for a wide range of loyalty program initiatives.
- Premiums that a retail client can receive from loyalty marketing programs
Loyalty marketing is also beneficial to a business and to its clients. There are a number of early premium programs that benefit clients including copper tokens. A merchant offers tokens that a customer can exchange with the products he or she is interested in.
Trading stamps are also important premiums from loyalty marketing. Clients can redeem stamps for different store products. This has been used for many years across different parts of the globe.
Loyalty marketers can also use programs that target children and their parents. For instance, many companies that sale cereal can offer a book as a gift to parents who purchase 2 packets of baby and children cereals.
Box tops, tobacco inserts, cash and product prizes including trading cards, collectables, games and small toys and modern packaged foods are also some of the things that consumers benefit from because of loyalty marketing.
Loyalty marketing comes with amazing benefits. Even so, it is imperative that a marketer defines his target audience to make the most of loyalty marketing programs.
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