The ideology behind the current emphasis on consumer retention is simple and logical: there are only a finite number of consumers that a business can serve. Loyal consumers are the ones that make businesses profitable repeatedly.
20 percent of consumers are responsible for 80 percent of your business. Genefied focuses on capturing such consumers.
Globally, businesses have begun to identify the potential of loyalty programs to retain each loyal consumer. Brand loyalty is what helps brands achieve newer heights.
Taking cognizance of the importance of loyalty programs, we have jotted down the top 5 reasons why loyalty programs are important for your brand. Read on!
As per Forbes: 32% of consumers strongly agree that a loyalty program makes their brand experience better. (Bond)
A well-planned loyalty program will never fail in engaging the consumers of the respective brand by drawing their attention towards the value such programs can generate. Consumer loyalty programs are one of those sure-shot solutions that can boost the engagement levels of the consumers and make them feel connected.
The best part about connecting with consumers through loyalty programs is that it makes way for the improvement of behavioral loyalty and increases profit. WhatsApp ChatBot or scanning a QR code are the ultimate solutions to keep the consumer’s engagement levels high. QR code scans have increased by 4000 percent in the last decade. The credit goes to PayTM, mobiKwik and GenuineMark has capitalised on this opportunity.
As per a search: As per millennials, the most important drivers of brand loyalty are great products at 77%, followed closely by brand recognition and trust at 69%.
Consumer psychology prefers brands that offer some kind of loyalty programs and automatically increases brand stickiness. Thus, they begin to place such brands above others in the market and prioritize them. Gradually, the respective brand starts earning recognition and witnesses a hike in its image by earning consumers’ brand loyalty.
QR Code by Genefied comes with in-built anti-counterfeiting technology and can improve experience and keep spurious goods at bay.
According to The Loyalty Effect, a 5% increase in customer retention can lead to a 25-100% increase in profit for your company.
The primary objective of a loyalty program is to retain the existing consumer base. These programs allow consumers and brands to understand each other. Additionally, brands can maintain the number of their loyal consumers while acquiring new consumers through word of mouth.
Smart QR code scan by Genefied helps improve brand reputation as it has a tool to capture ratings of the product that facilitates addition of consumers.
According to a source: The average first-time shopper will refer 3 people to the site, while after 10 purchases, that shopper will have referred 7 people.
NPS is a customer satisfaction metric that measures, on a scale of 1-10, the degree to which people would recommend your company to others.
Brands that manage to keep their consumers delighted through loyalty programs have a high NPS and are able to acquire new consumers through existing consumers. A happy consumer will always refer your brand to his or her friends and relatives. This increases the chances for your brand to acquire more consumers.
A QR code scan by Genefied provides immediate gratification to the consumers and a satisfied consumer will act as your marketing agent indirectly and rope in more consumers.
Offering a loyalty program means you are conducting a form of research that will generate similar information related to consumers for your brand. Through this information, you can identify the type of rewards that fuel the loyalty of the consumers to be used in future.
Genefied’s solutions provide data insights that form the base for brands to target the right consumers and manage their resources in order to market smartly.
Closing comments by Genefied:
Times have changed and so have the ways of retaining consumers. Brands that wish to earn consumers’ brand loyalty ought to understand the behavior of the consumers and introduce relevant loyalty programs to add value to your brand.
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