Whether it's a point system, frequent flier miles, or stamps on a buy-10-get-one-free card, consumer incentives programs accomplish things that traditional marketing can't by deepening the relationship between customers and brands.
In a recent study conducted, more than 56% of respondents say they would consider a brand for its personalized incentives over a competing brand that offers none. That is why incentive and loyalty programs have become a marketing strategy staple over the years.
Not only do loyalty and incentives programs attract new customers, but they also retain loyal customers. However, it is not just about making your customers feel more loyal or excited about your brand; a smart company will use incentives programs to learn more about its customers' habits. Here are the top four reasons consumer incentives programs are so valuable:
1. Increase brand loyalty
The most obvious benefit of incentives programs is that they can deliver a serious boost of warm-fuzzies and loyalty to your brand among your existing customer base. According to Bond Brand Loyalty, 71% of people involved in an incentives program say that the experience is a key part of their relationship with that brand. If you provide the right rewards for taking a specific action, consumers will be more likely to participate and stay involved with your brand.
2. Spread brand awareness
In a constantly connected world, incentivizing referrals and social media activity can give your brand a much-needed boost. Consumers will be more inclined to leave positive reviews, tag your company on Instagram, and get their friends and family involved in your worthwhile loyalty program if they can earn something in return. Bond Brand Loyalty notes that 70% of consumers will recommend a brand to other people simply because they think the loyalty program is valuable.
3. Drive sales
Let's get real, customers are only going to participate in a loyalty program if they get something in return. Clever marketers take advantage of incentives programs by offering discounts or rebates on new products or products that need some help moving off the shelves. In a recent report, discounts and coupons were named the best way to drive loyalty and increase sales, as an impressive 67% of customers admit to making purchases they did not intend to just because there was a discount available. Not only can you utilize incentives to your advantage by motivating customers to make a purchase, but you are also increasing customer loyalty while you are at it.
4. Gather data to refine marketing and product development
Boosting sales and awareness are essential, but the data you gather on your consumers is priceless. Companies can use these programs as a tool to track spending, behavior, and other trends. Turns out, consumers are on board with this, too, as three-quarters of consumers want to receive personalized discounts based on their purchase history. The insights gathered from consumer data can be used to personalize incentives and make future promotions and programs more relevant.
Whether your incentives program is designed to drive loyalty, brand awareness, sales, or a little bit of each, this marketing strategy is essential to creating and reinforcing consumer relationships and learning more about their behaviors.
Are you ready to implement a new Consumer Incentive program or need more information? Learn more about your options on our Consumer Incentive page or contact us!