Using Loyalty as a Customer Acquisition Tool in 2024

Curious about how loyalty can acquire customers? Well, it is not something that is done only once but an ongoing process that never stops if a brand wants to sustain its market presence. Customer acquisition is a highly zestful process that involves experimenting with various channels, requiring both creativity and effective incentives. But, does it end there? Not at all! Brands must also focus on retaining these customers to ensure continual growth. How are you approaching this in your strategy?

Let's discuss!

In this fiercely competitive business era, making loyal customers to ensure repeated sales has become more crucial than ever before. So, you're on the hunt for some new customers to join your brand, right? Well, you're in luck because we've got a trump card: loyalty programs.

Now you must be thinking that loyalty programs are all about keeping your current customers happy. But it is a lot more than that! Let’s take a deep breath and deep dive into the benefits customer acquisition and loyalty programs can get you!

Repeated purchase

Why are you investing enormous money in ads to promote products of your brand? The simple reason is to increase the sales following the brand’s profit. The introduction of loyalty programs not only motivates existing customers to remain loyal to your brand but also new customers to remain associated. Insights show that top-performing loyalty programs have increased 15-20% of brands’ revenue.

Brand Advocacy

Loyalty programs are the proven tactic to increase brand visibility and advocacy adopted by several big players in the industry. Did you come to know about the newly launched Limca’s Sip, Scan, and Win consumer engagement program? Don’t you feel it’s a masterstroke toward brand advocacy?

Build the Brand’s Reputation

During COVID, brands lost a huge customer base due to a major shift in their demand and taste. They either shifted to the competitor’s product or the highly demanding product of that time. However, to prevent this, a number of brands started rewarding their customers and constantly indulged them in consumer-engaging activities from time to time. 

Market research shows that over 50% of loyal customers actively recommend the brand to others, strengthening the brand’s reputation.

How can you use loyalty as a customer acquisition tool?

“Loyal customers, they don’t just come back, they don’t simply recommend you, they insist that their friends do business with you.” – Chip Bell.

Let’s understand what exactly loyalty is. Is it just collecting and redeeming points to get some benefits? Or are we missing something?

Loyalty is not just about racking up points but it's about forging real and direct connections with your customers. When customers feel a genuine bond with your brand, they're more likely to stick around, doing publicity for your brand.

Loyalty programs serve as an invaluable tool for brand management, akin to cultivating enduring relationships with valued clients. They play a pivotal role in driving repeat business and bolstering customer retention rates, mirroring the significance of maintaining strong interpersonal connections. By incentivizing continued patronage, these programs underscore a brand's commitment to client satisfaction, fostering a sense of loyalty and affinity. 

Results?

Competitive Advantage

Just like Parle enjoys a strong emotional connection with its consumers, leading to having 40% of the market share by leveraging a loyalty program. 

In the same way, a well-designed loyalty program can differentiate the brand from competitors, offering additional incentives that appeal to prospective customers and enhance the overall brand appeal.

Data Collection

Enrollment in loyalty programs provides brands with valuable customer data, including preferences, purchasing habits, and demographics, facilitating targeted marketing efforts for acquiring new customers.

Bisleri stands tall in unleashing the power of these programs, how?

Earlier they had consumer insights of only 5 lacs people.

Now they’ve managed to cross these figures up to 7 times annually, following all the GDPR rules.

Cross-Selling and Up-Selling Opportunities

Loyalty programs can serve as platforms for promoting related products or premium services to both existing and potential customers, driving incremental revenue growth.

The best example of this can be Reliance Retail. It not only incentivizes its customers through loyalty programs but also promotes other services like online streaming Apps, Jio Cinema, and more.

Enhanced Customer Experience

Loyalty programs provide a mechanism for brands to personalize interactions with customers, fostering a sense of connection and loyalty from the outset of the customer journey.

Isn’t it interesting to know how Cadbury enhanced their customer experience and always remained on the shelf? Simply by enhancing customer experience and forging a genuine bond with them. 

Word-of-Mouth Referrals

“ Nothing influences people more than a recommendation from a trusted friend. “

 - Mark Zuckerburg

Satisfied loyalty program members are more likely to recommend the brand to friends and family, thereby expanding the customer base through positive word-of-mouth. 

Many FMCG brands are now on a way to build a genuine connection between themselves and consumers by leveraging loyalty programs. Big players like Limca, Kellogg's, P&G, and many more. So, as we look ahead to the future of customer acquisition, remember this: loyalty programs are your trusty sidekick on the journey to building meaningful connections with your customers. 

Scan&Win supports your brand's engagement tactics while gathering valuable insights and boosting consumer satisfaction. This innovative program swiftly rewards customers through virtual spinning wheel technology, ensuring a seamless and gratifying experience. enables your customers to get rewarded by simply scanning the QR code. 

Still wondering if Scan&Win and Rewardify are the perfect fit for you?

Let's make some magic happen together by unleashing the power of Scan&Win and Rewardify for customer acquisition, shall we?