When MasterCard sponsored Beyonce’s world tour, it rewarded its valued customers with exclusive access to backstage passes and front-row seats. Mastercard labelled this offer ‘VIP Priceless’ to tie in with MasterCard’s iconic ‘Priceless’ messaging. This campaign gained widespread recognition as one of the most innovative loyalty programs to date.
The success of the VIP Priceless program confirms that, if used innovatively, loyalty programs can greatly enhance the brand reputation of any company.
The introduction of meaningful customer loyalty programs is crucial to business growth. Brands need to offer real value, in addition to traditional rewards, to engage with their key audiences.
We have covered this point in a previous article, “Why customer loyalty programs are failing to engage customers”, so in this blog we’ll look at why brands need to introduce value-based loyalty programs to better engage with their core audiences.
Value-based loyalty programs
Only 3 percent of your newly acquired customer will ever return to buy from you again. This is an alarming statistic when you consider how much you have invested in acquiring these customers. One way to address this is to introduce value-based loyalty programs.
Today with the availability of so many service providers who are offering the same products/services, it is easier for a shopper to compare thousands of prices in a few clicks. If your consumers are simply thinking about the product/service you offer rather than your brand, then you will find yourself in a tough price war, where established and larger discount brands are likely to win.
Introducing value-based loyalty programs stops you from competing with your competitors solely on price. A value-based loyalty program enables you to surprise and delight your valued customers by rewarding them for something that previously went unnoticed.
Introducing a value-based loyalty program can help your business retain your newly acquired customers because if these customers find your service and products valuable, they will stick with you. When you reward them with offers and services they can use, it is more likely that they will develop a lasting relationship with your brand. Given the fact that customer retention costs between 4 and 30 times less than customer acquisition, customer loyalty programs can play very crucial role in today’s volatile market.
Customer loyalty programs can increase company growth, improve your brand image, and help you retain your customers. To learn how to use loyalty programs to enhance your marketing mix, please visit Quantiful’s website.