Understand everything about loyalty marketing and why to use it

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Losing customers in today's economy, where a brand can have dozens or even hundreds of competitors largely thanks to globalization, is a luxury that very few companies can afford.

In this sense, generating solid and replicable user retention strategies emerges as an indispensable method for businesses to generate sufficient sales to remain competitive.

Many companies choose to use tools such as CRM software to generate close paytm database relationship processes, which is advisable, but if you want to go further and establish applicable strategies in your marketing efforts, you have come to the right post!

Along these lines we will explain what Loyalty Marketing is about, its importance within campaign promotion and customer retention initiatives, as well as a technique to generate relationship actions with your consumers .

Are you ready? Read to the end!

What is loyalty marketing?
You are probably already aware of what customer loyalty is, but to avoid confusion, let's start with this concept.

What is loyalty?
Loyalty is understood as the concepts originating from marketing whose main purpose is to retain — through various techniques and strategic tools — customers within a brand's consumer base through products or services delivered on a regular basis.

Customer loyalty is an extremely important area within all disciplines of Digital Marketing , especially driven by the birth of Marketing 3.0 and Marketing 4.0, where the customer is the center of all decisions and actions taken by the company.

So what is marketing based on this all about?

Loyalty Marketing
In this sense, customer loyalty marketing is fundamentally based on all those strategies focused on consumer retention , using incentives and benefits as currency of exchange.

All these initiatives are inspired by one essential objective: to promote consumption . Therefore, each of the strategic decisions that are implemented will have this purpose.

However, there is a greater goal that is the core of the methodology, and it is none other than satisfaction.

Satisfaction as a fundamental basis
Today's consumers want more than just quality products or lower prices than the competition.

In fact, with the emergence of the Internet and the popularization of mobile devices, as well as the abrupt transformation that society has experienced driven by climate change, a widespread consumer movement has been created - brought by millennials - that has forever transformed user habits.

Nowadays, consumers base their purchasing decisions on their values, that is, those brands that align with their thinking and seek to improve the environment and the community around them through their projects.

In this sense, companies have understood that loyalty marketing is, in itself, a satisfaction strategy that seeks to retain customers through adaptation to new values ​​that attract consumers, rather than just novel or well-priced products and services.

Loyalty marketing objectives
Now, loyalty marketing, as you may have guessed, has much more to do with adapting to the " triggers " that trigger the purchase decision in the minds of consumers than simply creating innovative goods.

Therefore, it is important to understand what the central purpose of this methodology is in order to understand how to carry it out.

Some of the clear and recurring examples of loyalty marketing are:

Identify consumers' interests and motivations to decipher their behaviors and consumption habits;
stimulate the purchase frequency of the current customer base;
create close, solid, relevant and personalized communication channels to improve customer service and attention;
optimize the lead prospecting or qualification process;
improve NPS (Net Promoter Score) and encourage word-of-mouth recommendations;
provide added value that promotes customer retention and loyalty;
optimize metrics in areas related to the marketing of products and services.
Loyalty marketing campaigns, beyond the objectives set out above, require customer relationship planning, since it is through this close interaction that the conditions for generating loyalty can be created.

Why do loyalty marketing?
If after everything we have explained to you, you still don't see why loyalty marketing would be a special or decisive resource in your business, don't worry, below we will show you the reasons why you should start considering it for your strategies.

Reduce costs : through this strategy, customer acquisition can be a much more economical task for your business, allowing you to save up to 5 times the cost of obtaining a new customer and increase a business's profits by up to 95% according to Harvard Business Review .
Collect and deploy data : Loyalty marketing automation allows businesses to track their customers and detect consumer habits and behavior to gain valuable insights that can be used to create effective strategies, reward systems, personalized offers, and much more.
Cross and up-selling : cross-selling is the initiative of offering similar products to customers and up-selling is the sale of products of a higher value; two strategies that can be carried out thanks to loyalty marketing by nurturing brand awareness strategies by up to 25% according to Bain & Company .
Brand ambassadors : A happy and satisfied customer who becomes a regular consumer of the brand is very likely to become an ambassador for your business in the medium term at zero cost. Since their rewarding experience will lead them to talk about your business in their circle, even within their social networks, inviting more people to join your base.
Which brings us to an essential point: how to apply loyalty marketing in an organization? If you are interested in finding out, keep reading!

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6 loyalty marketing strategies
Loyalty marketing allows customers to value the special aspects of your business more. However, to achieve this, it is necessary to apply effective and impactful strategies that encourage this recognition.

Loyalty cards : These cards are an essential loyalty resource to strengthen the relationship with your consumers, thanks to a series of rewards that are given to the customer upon accumulating a number of points, whether in your ecommerce, virtual store or physical store.
Promotions : This resource is very old, but equally effective; when the goal is to retain a customer, there is nothing better than constant and truly attractive promotions so that the business can guarantee that people return.
Gifts with purchases : If you want to delight a customer from their first purchase, always give more than they expect; for example, through unexpected gifts you can show them your appreciation and show them that they are important to your organization.
Personalized attention : obtaining data from your customers to improve their experience is vital in these times. A great idea for this is to get CRM software to collect data from your consumers and provide services, promotions and dedicated attention specifically aimed at the specific needs of each one.
Customer-centric : Customer-centric businesses are those that are able to analyze the needs of their consumers in order to become the solution provider they expect. A customer-centric company is a surefire strategy to gain the trust, respect and loyalty of your customers.
Loyalty programs : In addition to loyalty cards, you can use different strategies or loyalty programs such as VIP passes, loyalty rewards or special offers for purchases that convey your gratitude and consideration towards them.
Now, do you want to get inspired by companies that already implement loyalty marketing? Here are some success stories!

3 success stories
The cases we will discuss below are multinational companies; however, with initiatives that can be modified and adapted to any type of business.

Amazon Prime : This Amazon loyalty service in the form of a membership offers benefits to the multinational's recurring customers such as: streaming movie and series platform, free shipping, free e-books, streaming music service, special discounts and much more.
Starbucks : a successful business model that uses loyalty marketing as the basis for its actions ranging from exclusive offers, free coffee refills, free drinks, to gifts on consumers' birthdays.
Nike : With its Nike Plus program, it offers its consumers as part of the global community a series of emotional links to connect them with the brand through a kind of social network of athletes