Practical Loyalty Marketing Strategies to Keep Customers Engaged

Brands encouraging customers for regular purchases is a perennial activity. But this loyalty marketing requires practical strategies to keep customers satisfied and significantly increase the bottom line if planned well.

Brands need an active customer base and need to engage them throughout their buying journey. But how to motivate customers to keep coming back, again and again, is a serious concern among many brands. The key is to invest in loyalty marketing strategies that work to keep the current customers engaged enough to return to the brand. On the other hand, nurturing customers can introduce many rewards, thus resulting in increased customer loyalty and may boost sales. By looking at these ideas, a brand’s loyalty marketing is worth investing in.

Here are practical loyalty marketing strategies marketers can implement to make a successful brand image and result-oriented marketing efforts to keep customers engaged.

Loyalty Marketing Strategies to Implement

The key to a loyalty marketing strategy is making customers feel valuable. Here are some effective loyalty marketing strategies to incorporate into a loyalty program:

Creating an Effective Loyalty Program

Loyalty programs in marketing engage customers and encourage them to continue their buying journey with the same brand. The programs provide frequent rewards such as free invites or early access to new products to customers. In addition, when brands invite customers to join a loyalty program, it shows that they value those customers and look forward to building a long-term relationship.

Also Read: Audience Data to Fuel Marketing Strategies for Smart Wins

Leverage Zero-Party Data for Re-Engagement

Zero-party data is a goldmine for customer information; marketers use it for creating effective loyalty marketing strategies and for continual re-engagement efforts. But since loyalty marketing focuses on making customers loyal to brands, brands must provide complete privacy for their data via online forms, surveys, emails, and questionnaires.

Using zero-party data can be beneficial for brands to build effective, compelling, and value-oriented strategies that focus on their interests and pain points.

Also, it is helpful for brands to get information about customers interested in their services and products. So, marketers can build trust with their customer base by prioritizing privacy-friendly data collection methods.

Include Personalization

Customers look for personalization when they associate with brands. This is why today, it is imperative for brands and marketers to focus on including personalization in every marketing effort, including loyal marketing. Marketers can achieve a personalization approach in their loyalty marketing efforts by leveraging customer data through surveys, polls, emails, and blogs based on the services and product information they seek. Their answers are crucial to building tailored solutions through focused content for successful loyalty marketing. Marketers must focus on the strategy to create a competitive bench and boost exceptional brand experience to customers at scale.

Re-purpose Referral Programs

Loyalty programs and referral programs function differently. Loyalty programs incentivize customers to purchase from brands repeatedly, whereas referral programs incentivize customers to gather other potential customers to buy from the brand. So, re-purposing referral programs through existing customers can help brands acquire new customers. It is one of the creative strategies marketers can implement to attract new customers and expand the brand name.

Here are some insights for re-purposing a referral program to boost retention and new acquisitions:

• Make customer experience a priority
• Humanize the brand by creating a sensitive brand message
• Value customers and their interest
• Using customer information wisely

Ways to Measure the Success of Loyalty Marketing Strategies

There are several metrics marketers can use to analyze whether the loyalty marketing strategies are effective and help customers to retain, attract, and engage. Here are the metrics to follow:

• Net Promoter Score

The Net Promoter Score (NPS) measures customer satisfaction levels. The levels are numbered and scored between zero to ten. If the number is high, customers are satisfied and more likely to recommend the brand to others.

• Referral Frequency

Marketers can use the metric by recording the referrals and dividing it by the total customer purchase counts. Satisfied customers are more likely to further market the brand’s services, products, and overall experience, resulting in increased customers.

• Churn Rate

Marketers may use the metric by sending subscription services that gather the number of customers lost during the marketing period. If the churn rate is high, then brands and marketers need to rework on loyalty strategy or may improvise the techniques mentioned above.

• Repeat Purchase Rate

The repeat purchase metric is calculated by dividing the total customer counts by the number of customers who purchased multiple times. This provides a quick look into the number of customers returning to the brand.

Also Read: Best Agile Marketing Strategies for B2B Marketers

• Customer Lifetime Value

Customer Lifetime Value (CLV) is one of the best customer loyalty metrics. It predicts the total worth of a customer over the course of the brand relationship journey. A brand should aim to increase CLV by keeping customers satisfied and engaged.

Loyalty Marketing Sets a Bar for Valuing Customers

Customer loyalty goes much beyond providing loyalty points, referral rewards, or social media engagement. It is more about acknowledging existing and potential customers by delivering accurate solutions, services, and products at the right time and on their preferred devices and channels. These efforts will allow brands and marketers to initiate real-time interactions with customers and keep them engaged throughout their buying journey. These efforts also help brands accelerate customer loyalty, increasing customer retention rates.