Loyalty has to be more than a price
The explosion of e-commerce means customers will always have access to the best price. And when you can’t compete on price alone, you’ve got to start thinking about other strategies and tactics you can use to add value to your customers.
That’s where loyalty comes in.
Loyalty programs that look for ways to add value through mechanisms such as personalised content and exclusive product access, all help to build a brand's relationship with customers outside the price of a transaction.
But simply having a loyalty program doesn’t guarantee loyalty. These mechanisms need to be aligned to an evolved value proposition that truly considers a customer's needs, wants and desires. When executed correctly, brands can consistently meet the needs of their most important customers - not only does this provide customers with more to consider than just price when they get to the checkout, it also drives retention, alleviating pressures on acquisition targets and costs.
Listen to what customers say, understand what customers do
Evolving your value proposition to build customer loyalty starts with an understanding of who your most valued customers actually are. And to do that, you need data!
Data is the backbone of any successful loyalty program.
Online and offline channels provide brands with an opportunity to gather insights that can be used to bolster your understanding of your customer - but often many brands tend to both over-complicate and under-utilise this data.
Understanding your customer simply starts with listening to what they say. Online reviews, in-store conversations with staff and social listening gives brands qualitative data that can be used to deeply understand the needs and wants of their customers.
But as is true for all humans, what you say and what you do can be very different and is often incongruent.
That’s why it’s equally important to gather quantitative data on how customers interact with your brand - that includes transaction data, demographic data and marketing data.
By overlaying what a customer says with what a customer does, you can begin to define a clear view of the needs and wants of your customer and therefore, how you can consistently add value at scale.
But as the 2022 For Love or Money report warns marketers looking to understand their customer better - “If you ask for their data, then use their data to improve their lives”.
Collaborating for the good of the customer
Retail brands often partner with a very complex ecosystem of channels and organisations in order to get their products in front of new customers.
While these partnerships are beneficial for growing the customer base, when it comes to building brand loyalty - they can either make or break a customer's experience of your brand.
Collaboration is crucial to ensuring these partnerships work for your brand and not against it.
Sharing customer insights and understanding the experience both you and your partners offer your shared customers, can help you build a coordinated experience.
Solving your customers deepest needs and desires is the shared commercial link between both businesses - collaborating only ensures your brand, your partner and your customers - all win.
Cashrewards connects brands with loyal customers
We understand brands want to invest in customer retention and achieve their loyalty objectives. That’s why we’re proud to connect our high-value members with some of Australia’s leading retailers.
We share our loyal members with you, by driving them directly to your brand where they can enjoy rewards from you and cashback from us.
Build loyalty for long-term growth with Cashrewards.