eMart Engagement Blog
Post by Vishal Sukheja
August 14, 2014
Loyalty: The New Era of Marketing
Businesses tend to focus a lot on getting new customers and the focus sometimes gets decreased on retaining them. Well, that is what the loyalty programs are designed for. Loyalty programs are all about keeping your current customers happy and engaged, which lowers a brand's need for new customer acquisition. These programs reward your customers for their behaviour of 'coming back' to your business. Loyalty marketing, today, is being used in any industry where the customer is likely to come again. It is not only limited to customer-centric segments like retail, banking, hospitality and travel, but also has its play in traditional sectors like automobiles, electricals, healthcare and pharma. With this post, we will elucidate how loyalty programs are increasingly becoming a choice of marketers and doing wonders for customer retention.
India's one of the leading cable manufacturer explored the outreach of loyalty programs and was thrilled to have direct contact with its huge electricians base, which seemed unmanageable before. Engaging with its customers helped the brand raise its ROI by twenty folds. Another India's leading consumer products firm, with the help of its loyalty program, engaged on an individual level with its stakeholders and streamlined its sales happening at tertiary level. Not only this, various consumer centric companies are deploying their resources to have complete demographic details about its customers as they have realised that this is the era where customers are the kings and the queens. Brands are doing a lot to keep its customers glued to itself as this 'all web' generation is no short of options in any field.
Take a moment and think about how much money brands would be spending on acquiring new customer through channels like advertisements, PR campaigns, content marketing, social media, and others. It may be hundreds of thousands or billions for some of the businesses. But the companies with loyalty programs as a part of their business strategy, benefit by spending less on these channels for customer acquisition. When brands take a portion of their existing budget and put it in a loyalty initiative, the acquisition cycle feeds itself and this is evident across various channels. As is true with relationships, where starting a new relation every time takes lots of time and efforts, similarly to business, it costs about 5-6 times more to acquire a new customer than it does to retain a current one.
The ultimate goals of a loyalty program are to create a positive change in customer behaviour, i.e., increased spend, increased engagement-and improve brands' chances of retaining that customer in the future. Loyalty programs help marketers' attempts to move customers to repeat purchase behaviour. Big Brands are participating in the loyalty building game at a rapid pace, and it's up to you to make sure your brand enters the ring in order to win.
- 1. Counter the Counterfeits
- 2. Some excerpts from the interview of Srikanth Chunduri with Adgully
- 3. Customer data: A Quintessential tool to drive loyalty
- 4. Loyalty: The New Era of Marketing
- 5. Loyalty Programs for Delightful Customer Experiences
- 6. Cheers to Five Years of Innovation and Excellence