Do client loyalty incentives work?
Client loyalty incentives are increasingly popular across various industries because they can have significant benefits for all sizes and types of companies.
Also called loyalty rewards programs, client loyalty incentives are aimed at loyal clients, or repeat customers. They are aimed at:
- Retaining clients (especially in high-competition environments)
- Encouraging brand loyalty with further product offerings
- Customer advocacy: promoting the reputation of the brand though those loyal clients and customers, to attract more clients and customers
Done well, they always work. There will always be a benefit to the company through increased revenue. Done very well, there can be very significant ROI for a company – both in the short to medium and long-term.
However, client loyalty incentives can miss the mark if they are not based on the right data.
An incentive program can look great, sound great, and further operational goals, but if it’s not aimed at what customers want above all, it may not work as expected.
Loyalty incentive programs based on customer / client data:
Knowing what customers want, and what keeps them coming back, comes from data.
For a loyalty incentive program to reach its full potential, one needs to start with the data offered through database management. This data is pulled from a variety of sources, including social media, responses to, e.g. a prior email campaign, and current advocacy. It is then analysed through database management software by client management companies – with the specific objectives in mind.
Information obtained this way, is ‘pure gold’. Applied to loyalty incentives, this can make investment in a ‘chance’ campaign, to guaranteed highest ROI – for the current loyalty program and future incentives.
You’ll know:
- Which customers to target with different, or multi-layered incentives.
- How to reach them (e.g. through mobile apps, social media, email etc – or combinations)
- When to launch loyalty incentives (PS – a product launch might not be the best time…what about before, or after the product, and associated brand, has traction).
- An almost unlimited pool of information to create an amazing incentive campaign and for tweaks and adjustments.
Trust the data, ahead of what you think you know about your clients, and sales goals, and your loyalty incentive program will work.
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