lty marketing: Why we care //

Marketers have two primary goals. One is to attract new customers and retain existing customers. The other is to entice them back to your business. It is important to offer a product at a reasonable price that customers are willing to buy. How do you get them to stick with you? How can you convince them to purchase not just once but multiple times?

Building a relationship with customers and earning their loyalty is the key. It takes effort and time to do this — offering exceptional service, asking for feedback , and understanding their needs. A strong customer loyalty program can be a powerful tool in your loyalty kit.

A loyalty marketing program is something that anyone who has ever had the pleasure of getting a free large iced cup of coffee, or cashed in rewards points to receive special deals or freebies from their favorite restaurants or retailers has done. They can be a win-win situation if done correctly. Customers get discounts and other perks on products they would most likely buy anyway. Retailers enjoy increased revenue, customer retention, and other avenues of growth.

These programs are, perhaps not surprising, very popular. According to Statista, U.S. consumers were enrolled in an average of 16 loyalty program, and used approximately half of these programs on a regular basis by 2022. Global loyalty market is expected to reach $24 Billion by 2028.

This article will explain what loyalty marketing is and walk through some different loyalty programs. We’ll also discuss digital marketing and what it means to marketers.


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What is loyalty marketing?

Loyalty marketing, as it is commonly known, is a strategy that enables businesses to draw customers, earn their trust, and keep them by offering incentives such as free products (beauty brand samples are often included in orders above a certain dollar amount), discounts, and perks like points that can later be used for rewards. The loyalty program includes frequent flyer programs for airlines.

Customers who spend money and sign up for the program are rewarded with either monetary value or early access to new products.

The goal, regardless of perk, is still two-fold.

Marketers know that loyal customers are an important part of any marketing strategy because they spend more money on every purchase and are more likely to test new products from businesses that they trust.

Different types of loyalty programs

There are many types of loyalty programs available. The most popular are:

Digital loyalty marketing

Loyalty marketing is for consumers over a certain age. These cards are punched or stamped at the checkout in brick-and mortar stores. They are then kept in a wallet until the desired number of purchases has been met. The reward is then given out.

These programs, which are still available, are simple to sign up for, offer no cost and a visible pathway to a tangible reward for spending money with a business.

They also depend on customers returning to brick-and-mortar stores to spend and get rewards. Businesses often struggle to track details about customers and their purchases because they are so simple (filling in a card in-store or submitting an email address)

Mobile-first loyalty marketing is essential in today’s world. Customers must have the ability to connect with retailers and brands from anywhere they are mobile. This multichannel approach to loyalty marketing is designed to increase engagement through:

But, Omnichannel loyalty’s most important aspect is its ability to provide marketers and retailers with vast amounts of data that can be used to illuminate customer behavior and improve marketing strategies.

The loyalty program at Starbucks — here — shows great examples of omnichannel marketing. Free Wi-Fi might appeal to customers who go to a cafe for coffee. Access requires that users provide an email address so they can be contacted regarding promotions and other offers.

The company increases the stakes. To redeem an offer email, the customer must sign up for the rewards program . The app will allow the customer to make the purchase that results in the reward.

This engagement occurs across multiple channels. It allows the company to send targeted offers based upon drink preference, location, and so forth. Targeted offers show customers that Starbucks cares about what they want, which builds trust.

What’s next for loyalty marketing?

Marketers must be innovative in order to retain customers’ attention. Gamification is a growing trend. This means that customers are more likely to engage with apps-based games like trivia and puzzles.

Marketers are pushing for mobile-friendly rewards and will continue to promote app-based programs. Strategic partnerships are also increasing in popularity. Many hotel brands have partnered with ride-sharing companies to offer discounts to their guests who are enrolled in their reward programs.

No matter what loyalty program you have in place, make sure that your customers feel connected to it. Capgemini says that emotions have the greatest impact on loyalty.

Marketers must therefore create experiences and programs that are tailored to the preferences of consumers. The payoff is huge: According to the same Capgemini report, 70% of emotionally engaged customers spend twice as much money on brands they trust.

But there’s more!

There are many resources on the internet about loyalty marketing.

The website Loyalty Lion has a great overview: What is loyalty marketing? Modern marketing: The importance of brand loyalty

These are just a few examples of loyalty programs.

A few stats about loyalty marketing: 14 customer loyalty trends to be followed

Here’s a guide for subscription models.

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