Loyalty Programs and Word of Mouth Marketing is intertwined!
The marketing landscape has completely morphed itself over the last 15 years and is now a completely different animal altogether.
A hundred even fifty years ago, consumers wanted to hear the marketing messages, they were starved for news and new exciting offerings BUT with the Internet and the information age all that has changed.
Today the average person in the developed world is bombarded with 3000 plus commercial messages a day and is suffering from information overload, shunning traditional invasive marketing methods.
Not a single reason can be credited for that, there are plenty reasons that has caused the change. The most important one is the mentality of the people I guess.
Having a look at the present marketing strategy of small, medium and large businesses it is clear that they all are running after the same customer base.
While companies are paying more attention to the Internet for mainly the promotional purposes, there are many that believe that word of mouth marketing is more effective.
It’s proven that a good loyalty plan for your customers, will certainly put you in the the upper 80% of your customers mind when they are deciding on making use of products and services in your market.
The significance of a good loyalty program is now understood by many companies and businesses (mainly the retail industries) and those who still don’t pay much attention to Customer Loyalty Program, here are 10 benefits.
10 Compelling Reasons Why Loyalty Programs Work!
- Mass appeal: This is an effective way to reach the masses. Through this program, businesses and companies can convey an impression that they are thinking about the customers and that’s something really appealing to the customers.
- Reach their target audience: Unless you have a precise idea about who your business customers are, it would be difficult to grow. Loyalty programs help you determine the right customers or you can say it the other way round that the right customers get attracted to your offerings if you have the right loyalty program for them.
- Control the pricing: This is really an exciting fact about the loyalty program. You can decide you own offers and facilities and thus you have the control over the price of the selected items.
- Gain competitive advantage: A word of mouth marketing strategy works brilliantly in this aspect. The better loyalty plan you’ve got for your customers, the more promotion you achieve. More so, this creates a healthy competition with your immediate competitors.
- Brings customers back: Well, this is a very important aspect of achieving success in the business. Unless you are able to retain your customers, you cannot achieve large success. Irrespective of any business, customer retention is very important. With the best loyalty plan, you attract customers again and again to your store.
- Positive customer feedback: Positive customer response is an equally important aspect for a successful promotion of your business. Presently, with the help of so many social media, customer feedback is visible and sharable with all. If you buzz in the right places, you will receive optimistic feedbacks from customers which will help better turnover of course.
- Offer personalized experience: We all love to feel special and be treated special. Allow your customers feel the same for your business. Develop loyalty plans effectively that suit the customer needs and requirements. It makes them feel special.
- Loyalty program grows: More than 30% of the regular purchasers have claimed that their loyalty has grown over the years and because of such a plan and its necessary modifications, you can retain your customers year after year and they also find it advantageous shopping from you.
- Boost the social media presence: While customers are busy shopping from you and you are with developing the loyalty plan with more effectiveness, you don’t even know, you are being discussed on the social networking sites. It is unimaginable how much this will benefit your business.
- Value your customers: Loyalty programs are the best way to show the real appreciation for your customers and say them Thank You. Yes, this is the way you express your gratitude towards them. Make them feel good and emotional and only loyalty programs can achieve that.
A survey done by Deloitte & Touche found that 88% of companies with a loyalty program are more profitable than their peers.
The smart money is investing in it, shouldn’t you at least investigate it, call me on 081 271 2069 for more information.
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