How loyalty programmes future-proof brands across industries

Yotpo is a Business Reporter client

Loyalty programmes benefit shoppers and businesses alike, especially as customer acquisition costs continue to skyrocket

Increased paid advertising costs, more competitors on the market and the devaluation of third-party cookies are all pointing businesses towards revamping their retention efforts to improve overall business performance. For many forward-thinking brands, this means creating a strategic loyalty programme.

According to Yotpo’s State of Brand Loyalty Survey 2022, loyalty programmes make the majority (60 per cent) of global shoppers more brand loyal. Further, 84 per cent of survey respondents said belonging to a loyalty programme influences their decision to buy again from a brand. Loyalty programmes deliver hyper-relevant, personalised experiences that make shoppers feel valued, and they ensure that businesses establish one-to-one relationships with valued customers. Shoppers no longer want generalised experiences; they want their path to purchase to be tailored to their preferences and inclinations.

And loyalty programmes aren’t just good for shoppers – they’re also good for business. Whether brands want to increase their average order value, collect more data on customers or grow their social media reach, loyalty programmes can be constructed to fit. For example, ​​fashion retailers can use their loyalty programme to keep their brand top of mind in between purchasing cycles and encourage cross-product adoption through member engagement campaigns and discounts.

Similarly, consumers heavily research purchases like furniture or appliances, which increases their chances of coming across a competitor. Home brands can offer programme sign-up discounts, encouraging shoppers to opt for their brand over a competitor.

Increasingly, brand values are top of mind for shoppers. More than 84 per cent of survey respondents said they are more inclined to buy from a brand whose values align with their own. Tentree, a sustainable fashion brand, knew it needed to bake its brand mission into its loyalty programme to drive shopper affinity and engagement. The programme, Impact Wallet, allows members to track their impact on sustainability with every purchase and level up to different achievements. By structuring its loyalty programme around social responsibility, Tentree reinforces its brand mission and encourages shoppers to play an active role in combating climate change.

Princess Polly is an ‘it’ retailer for Generation Z shoppers. Its target audience notoriously jumps from competitor to competitor, so the brand knew it needed to invest in a loyalty programme to boost retention. Yotpo Loyalty has enabled Princess Polly to create thoughtful loyalty experiences throughout the customer journey. Its VIP benefits, such as opportunities to be featured on the brand’s social channels and exclusive access to its Facebook Insider group, enable Princess Polly to grab the attention of its audience.

These examples highlight a brand’s need to create unique programmes aligned with core values and differentiators. Gone are the days of ‘burn and churn’ programmes. Consumers buy based on values, emotional connections and trust – and brands have to do much more than facilitate a transaction to earn long-term loyalty.

Read Yotpo’s State of Brand Loyalty report

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