The second decade of the 21st century is about to close out and brands are already prepping up to take on new challenges. Consumers are enjoying more power and new ideas are emerging regularly.
Building consumer loyalty is crucial to maintain a business in the years to come. However, there are a few things you probably didn’t know about consumer loyalty, but should know being a brand. Learning these things will allow you to retain consumers, which is the holy grail of consumer-centric marketing.
Here is the list of things that you need to know about consumer loyalty before you plan for the future.
Even consumer loyalty regards content as king
Stronger the communication, the better it is. Interestingly enough, while running a consumer loyalty program, loyalty program members pay heed to how the brand communicates with them. A survey found that members who found communications to be relevant were 4.6 times happier than those who didn’t. Ignoring communication with consumers through unique content will land your brand nowhere.
Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program. (Bond)
If you succeed in presenting the right content to your loyal consumers at the right time, then no one can take away this 70% of consumers from you.
Employment of game mechanics is highly beneficial
Adding features that are commonly found in games can enhance a consumer’s engagement tremendously. Virtual rewards & goal-settings can turn the tables and make conditions favorable for your brand. You can’t really expect things to work in your favor without integrating gamification features.
37% of consumers say they are loyal to a brand after making five purchases
Brand loyalty statistics show that 37% of consumers don’t see themselves as loyal consumers of a brand unless they make five repeat purchases from that brand. A major reason for this is the constant push from businesses to increase their lifetime value. This is a general trend that has been seen in the market since long.
80% of a company’s revenue comes from just 20% of its existing consumers
80/20 principle by Vilfredo Pareto suits sales and marketing amazingly even after years of discovery. A brand can gain insights on how to attract more consumers by studying the top 20% of the consumers. This will allow brands to earn more profits. 70% of service businesses cite consumer loyalty and subsequent retention as essential for business growth.
It’s 6-7 times more cost-effective to retain a loyal consumer than to acquire a new one
Instead of focusing on getting new consumers, it’s wiser on part of brands to retain loyal consumers. The chances of selling to an existing consumer are 60-70%, while selling to a new consumer is 5-20%. This fact is enough for brands to learn the importance of retaining through consumer loyalty programs.
Consumers who feel emotionally connected with a brand have a 306% higher lifetime value
Consumers who feel valued by a brand grow more loyal to that brand and become its advocates. This fact not only hints at the importance of retaining existing loyal consumers, but also the chances of gaining new ones through them.
A consumer loyalty program is the undeniable core of any brand’s marketing plans. You can never learn enough of it unless you dive deeper and adopt it by seeking professional help.
We at Genefied believe in giving brands thousands of reasons to give due weightage to retaining consumer loyalty. Our smart solution can enable you to grab the best of opportunities for your brand.
There is no other better time than NOW to provide what your brand deserves. We are just a call away. Connect and obtain answers to all your queries.