In an era where the customer is king, brands are struggling to grab and maintain a share of the customerâ€™s wallet and mind.
When it comes to ensuring that customers stay loyal to a brand, the first step would actually be to understand what makes consumers fickle with their brand loyalty in the first place. But with the fragmented media space, this is not easy.
According to Rare Consultingâ€™s Redefining Loyalty report, 65% of customers will still shop with the brand even if its loyalty programme ceases to exist. In fact, only one in three people said that loyalty programmes are a vital ingredient for a consumerâ€™s relationship with a brand. But what a loyalty programme does is open up avenues to understanding the consumer.
When asked what loyalty meant to them, respondents cited brand trust, customer experience and being rewarded as aspects of loyalty.
Loyalty is not the answer to everything and you canâ€™t expect it to turn around your business with a snap of your fingers. Itâ€™s a diligent trial and improvement process that starts when you think you know your business and customers well enough to build a coherent strategy.
Strategy is just the beginning â€“ you need to follow it up with a committed investment and a practical implementation plan.
But at the end of that tunnel awaits a prize. A good loyalty programme truly has the power to transform a brand into a personal relationship, and transcends barriers to create a direct channel to your customer.