Tags: Incentives & Rebates
The Top 5 Reasons to You Should Start Planning Your Consumer Incentives Program
Whether it's a loyalty points system, frequent flier miles, or stamps on a buy-10-get-one-free gift card, consumer incentives programs accomplish things that traditional marketing can't by deepening the relationship between customers and brands.
According to Salesforce, 70% of consumers say a company’s understanding of their personal needs affects their loyalty. That is why customized incentive and loyalty programs have become a marketing strategy staple over the years.
Not only do incentive programs increase customer acquisition, but they also retain loyal customers. However, it is not just about making your customers feel loyalty or excitement about your brand; a smart company will use their reward program to learn more about their customers' habits. Here are the top five reasons consumer incentive programs are so valuable:
Increase brand loyalty
The most obvious benefit of a customer incentive program is that it can deliver a serious boost of warm-fuzzies and loyalty to your brand among your existing customer base. If you implement the right loyalty program for taking a specific action, a consumer will be more likely to participate and stay involved with your brand, increasing customer retention and brand loyalty.
Spread brand awareness
In a constantly connected world, incentivizing a referral program and social media activity can give your brand a much-needed boost to reach potential customers and build strong relationships with existing customers. The average consumer 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. With so many different loyalty programs out there, it pays to be different. Customize your consumer incentives to increase engagement while also emboldening your brand’s mission and vision.
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 customer incentive programs by offering a monetary incentive like reward points, discounts, or rebates on new products or products that need some help moving off the shelves. The key is to make the reward tangible and accessible so that customers can use them right away on any device.
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 incentive marketing to your advantage by motivating customers to make a purchase, but you are also increasing customer retention and loyalty while you are at it.
Gather Data to Refine Marketing and Product Development
Boosting sales and engagement is essential, but the data you gather on each consumer is priceless. Companies can use loyalty programs as a tool to track customer behavior, spending and other trends. Turns out, the consumer is on board with this, too, as three-quarters of consumers want to receive personalized discounts based on their repeat business. The insights gathered from consumer data can be used to personalize the rewards program and make future promotions and sales incentives more relevant to the target audience.
Boost User Experience
Each consumer has so many different choices for where to spend their money. If they have a negative experience with a company they can easily find similar goods or services elsewhere. In fact, according to Forbes, 79% of customers will take their business elsewhere after a negative customer experience.
The customer experience encompasses a variety of factors from customer service to product displays but it is also about the emotional connection between a customer and a company. Implementing a customer loyalty program that gives back to those loyal customers is a great way to boost customer satisfaction and deepen the emotional connection that drives repeat customers.
Consumer Incentive Programs Can Do More Than You Think For Your Business
Whether your customer incentive program is designed to drive loyalty, brand awareness, sales, or a little bit of each, implementing a customer loyalty program is essential in creating strong relationships and learning more about consumer behavior.
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!
Call Group O at 866-476-8761 today.