Genefied helps Enterprise Brands capture 1st party data to further get insights, retarget and build lookalike audiences.
In this hasty and highly competitive world of the consumer goods industry, loyalty programs are more than just a tool for rewarding customers—they are a strategic asset that can drive growth, enhance customer retention, and significantly boost your brand’s market position. For all the top brands in this industry, the question isn't just whether to implement a loyalty program, but how to do so effectively and when? Any guess?
Bond Brand Loyalty in 2021 emphasized that companies that introduced loyalty programs during periods of growth experienced a 15% higher increase in customer retention than those that launched during less favorable times. This suggests that aligning the launch of a loyalty program with periods of business momentum can amplify its impact.
Conversely, for brands navigating economic downturns, the introduction of a loyalty program can serve as a stabilizing force. The same study revealed that businesses launching loyalty initiatives during challenging times managed to mitigate customer churn by up to 30%. This highlights the dual advantage of loyalty programs in both growth and crisis periods, providing a versatile tool for customer retention and engagement.
Why should your business invest in a loyalty program? Moving further demands understanding the importance of adopting these reward programs. Here are some irresistible reasons, backed by statistics and expert insights:
Acquisition and Retention both are crucial for a brand to sustain itself in the market but as per Harvard Business Review, it is 5 to 25 times more expensive to acquire a new customer than to retain an existing one. Loyalty programs incentivize repeat purchases, keeping customers engaged and loyal to your brand.
Loyalty programs, like Fevicol Champions Club (FCC) which boasts over 1 million active members, are proof that rewarding repeat business works wonders. By offering points, discounts, and exclusive perks, you create an ecosystem where customers feel valued and appreciated.
Increased Sales
When customers know they can earn rewards for their purchases, they’re more likely to buy more frequently and spend more per transaction. Retailers and influencers are most of the time they are responsible for influencing consumers to buy your brand’s products. Hence, you must have seen top consumer brands investing in incentivizing them.
Consider this: retailers and influencers of JK Laxmi Cement which includes a loyalty component, spend an average of 20% more per year, compared to non-members. This shows how a well-designed loyalty program can significantly increase sales.
Loyalty programs are like gold mines for data. By tracking customer purchases and preferences, you gain insights that can drive personalized marketing and product development. According to McKinsey, personalization can deliver 5 to 8 times the ROI on marketing spend and lift sales by 40% or more.
This mantra of ‘personalization’ has been decoded by all the top brands. How are we so sure about this? Notice around you! How are Britannia and Parle engaging their customers? They are leveraging innovative technologies to capture the data and analyze it for retargeting and remarketing purposes.
Loyal customers are your best marketers. 92% of consumers trust recommendations from friends and family over any other type of advertising. By cultivating loyalty, you’re not just keeping customers, you’re turning them into advocates who spread the word about your brand.
Let’s dive into an interesting example, Maggie. It’s crazy that Nestle spent over 400 crore on its sales and promotion, what’s crazier is brand gets more revenue from word-of-mouth than its actual promotion.
Knowing the right time to implement a loyalty program is as crucial as understanding its importance. Here are key moments when adopting a loyalty program can be particularly beneficial:
Are your competitors gaining ground? This is the perfect time to roll out a loyalty program. A well-crafted program can provide a compelling reason for customers to choose your brand over others. By offering tangible rewards and a sense of belonging, you can capture a larger market share. Remember the famous quote by Warren Buffett:
“Price is what you pay. Value is what you get.”
Experiencing a sales slump? A loyalty program can act as a catalyst for boosting revenue. By incentivizing repeat purchases and higher spending, you can stimulate sales and improve cash flow. Special promotions and double-point days can also reignite customer interest during slow periods. According to the Center for Retail Research, loyalty programs can increase a company’s profitability by 5-10%.
Is a particular product not hitting the mark? Integrating it into your loyalty program can help increase its sales. Offering bonus points or exclusive rewards for purchasing the struggling product can entice customers to try it, thereby boosting its performance and clearing out inventory.
When planning your budget, think beyond traditional marketing strategies. Allocating resources to a loyalty program can yield long-term benefits, such as increased customer retention, higher sales, and valuable customer insights. This strategic investment can enhance your overall marketing ROI and business growth. According to Forrester Research, a well-executed loyalty program can increase customer lifetime value (CLTV) by 306%.
Now you must be wondering how can you elevate your brand loyalty strategy. Right?
Look no further than Rewardify, India’s leading QR Code-based Loyalty Solution. Rewardify ensures robust loyalty among Retailers, Distributors, Influencers, and Consumers through unique QR codes designed to maximize your brand’s loyalty. Here’s why Rewardify stands out:
Retailers often have several products in their stores. To make and keep them loyal to your brand, it is important to keep them engaged. Rewardify leverages leaderboards by blending FOMO with rewards. How? The more they sell your products, the better your rank on the leaderboard.
Research shows that by the end of 2025, brands are about to invest 30% of their profit on loyalty programs than infrastructure development. It clearly shows that Loyalty is the key to retaining customers.
As per Thomas Redman, “Where there is data smoke, there is business fire.” We have seen brands holding the lion’s share of the market leveraging data to provide a personalized experience to their customers.
Rewardify is an innovative solution that minimizes churn rates by up to 40% of top enterprise brands, fostering unwavering customer loyalty. As it enables brands to capture customer insights with ease, which further is analyzed to know customer behavior, purchasing patterns, and preferences.
By integrating Rewardify into your loyalty strategy, you can build an emotional connection with your customers, enhance their experience, and drive sustained business growth. Empower your brand with Rewardify and witness the transformative impact of a well-executed loyalty program.
Clive Humby suggests that “Data is the new oil.” He is not wrong! Top brands are now winning customer loyalty by providing them with a fully customized look and feel. This is forging authentic bonds with the customers.
In today’s rapidly evolving digital landscape, staying ahead of the competition and maintaining customer loyalty are supreme.
So, when will you adopt your loyalty program? The best time is now. Let’s secure your brand’s future together.
Copyright 2024 Genefied Brand Protection Solutions Pvt. Ltd. All Right Reserved
