Brand
loyalty can be defined as consumers who become committed to a
brand and make repeat purchases over time. Brand loyalty is a result
of consumer behaviour and is affected by a person's preferences.
Loyal customers will consistently purchase products from their
preferred brands, regardless of convenience or price.
Loyal customers are the most profitable versus the consumers who pick and choose based on promotions. Recent consumer trends suggest that people are more likely to go for price rather than brand, as illustrated by the findings of a recent Which survey stating Aldi had beat Marks & Spencers and Waitrose to the title of the UK's favourite supermarket. Customers voted it the best supermarket as it provided value for money and helped to ‘ease the impact of increasing food prices on day-to-day budgets’.
The recent success of both Aldi and Lidl is a sign of the times. As companies battle to win customers back, with Ryan Air just signing up 2 million loyalty scheme members, we wanted to see what the benefits of a customer loyalty scheme were.
Helps Retain Existing Customers
Loyalty schemes provide customers with incentives and rewards to continue buying or using the same brand. Loyalty programme operators often report that when customer starts redeeming rewards, enthusiasm and engagement increase.
Targeted Marketing
The data collected from a loyalty programme can be used to better cater for the customers varying needs. By identifying customers purchase history it allows for more targeted marketing specific to customer needs. The more sophisticated type of loyalty programme - such as the UK's Tesco Clubcard - can not only target advertising material almost individually to its many millions of members but it can accurately measure the response rates to those advertisements as well which is invaluable data for any company to allow them to retain customers.
Attract New Customers
While the main aim of a loyalty scheme is to lock-in existing customers and reward them for their loyalty, a positive by-product is that it will inevitably attract new customers. When people feel that they're getting an unbeatable deal then they're more likely to switch allegiance, therefore the percentage of new customers is directly linked to the quality of the rewards and incentives on offer.
Best Customer Marketing
Loyal customers are the most profitable versus the consumers who pick and choose based on promotions. Recent consumer trends suggest that people are more likely to go for price rather than brand, as illustrated by the findings of a recent Which survey stating Aldi had beat Marks & Spencers and Waitrose to the title of the UK's favourite supermarket. Customers voted it the best supermarket as it provided value for money and helped to ‘ease the impact of increasing food prices on day-to-day budgets’.
The recent success of both Aldi and Lidl is a sign of the times. As companies battle to win customers back, with Ryan Air just signing up 2 million loyalty scheme members, we wanted to see what the benefits of a customer loyalty scheme were.
Helps Retain Existing Customers
Loyalty schemes provide customers with incentives and rewards to continue buying or using the same brand. Loyalty programme operators often report that when customer starts redeeming rewards, enthusiasm and engagement increase.
Targeted Marketing
The data collected from a loyalty programme can be used to better cater for the customers varying needs. By identifying customers purchase history it allows for more targeted marketing specific to customer needs. The more sophisticated type of loyalty programme - such as the UK's Tesco Clubcard - can not only target advertising material almost individually to its many millions of members but it can accurately measure the response rates to those advertisements as well which is invaluable data for any company to allow them to retain customers.
Attract New Customers
While the main aim of a loyalty scheme is to lock-in existing customers and reward them for their loyalty, a positive by-product is that it will inevitably attract new customers. When people feel that they're getting an unbeatable deal then they're more likely to switch allegiance, therefore the percentage of new customers is directly linked to the quality of the rewards and incentives on offer.
Best Customer Marketing
Simply
put, best customer marketing (BCM) involves spending more time,
effort, and money on your best customers in order to maximise the
return on marketing investment. It has become the driving force
behind the leading loyalty programmes in the world today.
Reduce
Promotional And Advertising Costs
The
data configured from a loyalty scheme allows companies to target
their marketing meaning significant savings can be made. There is no
need to send out thousands of flyers that will be thrown away unread,
or take pages of newspaper space that is irrelevant to many of the
readers.
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