As a customer, the brands you consider yourself to be loyal to may be different from the brands that consider you to be loyal to them. Is this because businesses measure loyalty by statistics – the potentially biggest spending consumers are considered the most valuable/loyal whether they have an emotional attachment to the brand or not? These consumers are not necessarily the most valuable in terms of long term profitability or opportunity for the ‘word of mouth’ marketing (which is increasingly important during the social networking revolution). For customers, loyalty is more of an emotional concept and brand affinity is normal for defining who we are; subsequently we can become more susceptible to act upon the call to action or passing on core brand messages.
A lot of marketing campaigns fail to address this 3 dimensional element of consumer loyalty and miss the opportunity to reward and encourage consumers that whilst in business terms are not considered loyal, but in social terms most definitely are.
In the case of loyalty marketing is it not therefore important to not only reward the loyalty of high spending customers (through points schemes etc.) which of course should always be the main priority, but to also reward those who through their brand loyalty ensure continual use of the brand and bolster the positive associations with a brand?
Loyalty marketing or sales promotion has emerged as a mutually beneficial programme that seeks to appease both customers’ and businesses loyalty needs. From a customers’ point of view they are receiving what they consider to be a special discount – particularly in the current economic climate, this can be seen to help financial burdens. A percentage discount can ensure the reward is given in direct correlation to the amount spent, so everyone is rewarded for the amounts they spend.
It boils down to consumers needing to feel valued no matter how much they are spending – surely if your brand nurtures its consumers through loyalty marketing, its consumers will nurture your brand?
Contact Us if you are interested in loyalty marketing by featuring a discount in a loyalty and membership programme or discount club to improve customer loyalty by rewarding new and existing customers.