Since the invention of the internet it has never been easier for people to market their business. This has created an abundance of businesses all fighting for the consumers attention, which is why, now more than ever before, brand loyalty products are critical for your company.
What Are Brand Loyalty Products?
Brand loyalty products are when you offer incentives to customers in order to encourage repeat purchases. The most famous brand loyalty scheme is a simple points system that offers financial incentives to repeat customers.
Do Brand Loyalty Tactics Work?
Yes they do! Brand loyalty products have been in the industry for decades which is a testament to their effectiveness. The Harvard Business Review found that companies that score highly on brand loyalty and customer loyalty grow their revenues 2.5x quicker than those that do not. The same study also reported that those same companies also deliver two to five times the returns to their shareholders over 10-year time frames.
Find Your Voice
A key factor in why brand loyalty products are so important is because it shows you how to find your company’s voice. In today’s social climate, many people wish to see that your company has their own unique voice on social and political issues.
Brand Loyalty Is Not Always Financial
In line with the previous point, building brand loyalty does not necessarily mean adding financial benefits to your customers. A report by Forbes stated that 88% of consumers will be more loyal to a company that supports social or environmental issues.
In the same report, 92% of consumers will be more likely to trust a business that supports social or environmental issues. These figures showcase the effectiveness of building brand loyalty without heavily relying on financial incentives. As a company it is more important than ever to factor in these points when trying to build your brand loyalty products.
Don’t Get Left Behind
As the world becomes more and more data driven, companies that do not operate brand loyalty products will simply be left behind. Brand loyalty products are one of the most effective ways of gaining critical data about your customers, which you can use for optimising how your business operates. You can now build systems that will precisely tell you how each of your customers thinks when they’re using your products and services. The marketing world is so data driven that the old-fashioned tactics are almost becoming obsolete.
It should be mentioned that you should always follow the latest data laws of each country you operate in and respect your customers privacy when using the data.
One Size Doesn’t Fit All
The points we have mentioned above should serve as a lesson of why brand loyalty products work but you need to factor in what exactly you want to achieve by building it. A great brand loyalty product can vary depending on your business and what you’re trying to achieve so please make sure you build a tailor-made solution specifically for you. For example, a luxury yacht company would not build a brand loyalty product the exact same way a discount grocery store would.