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BizReport : Loyalty Marketing : February 13, 2020

Top 3 tips to strengthen brands' loyalty programs

Ten punches at a coffee shop gives a coffee drinker a free beverage. Higher percentages off to email list subscribers. Including a percentage-off offer with a receipt. These are all ways brands are trying to build their loyalty base. But, according to one expert, loyalty isn't only about purchase frequency, it's about customer engagement. Here's how brands can improve their overall loyalty strategy.

by Kristina Knight

Building long term loyalty shouldn't focus solely on the discount or the 'freebie'. Long term loyalty, according to our expert, is about building a personal relationship with a shopper that offers them relevant products that have value. Here are three tips to build a stronger loyalty strategy.

Tie rewards to overall brand goals

"[Marketers should] use rewards to reinforce actions central to brand goals. That can include purchase- or visit-frequency goals, or goals unrelated to purchases, like amplifying marketing messages," said Nicole Amsler, VP of Marketing, Formation.

Make rewards valuable to the shopper

"[Brands must] ensure rewards are valuable to the customer. Some loyalty programs collect information but don't use that information to personalize rewards and ensure they're relevant and valuable for customers," said Amsler. "Grocery stores are one example of this. The program scans a member's number but offers seemingly random and useless coupons that many shoppers don't value. Personally appealing rewards more effectively build loyalty."

Increase rewards based on lifetime spending

"[Marketers should] create a system where benefits increase the more a consumer spends. Customers are likely to engage more if they get more in return. These returns should be personalized to the individual's level of engagement to ensure they are challenging, but not so frustrating that they discourage customers from coming back," said Amsler.

Tags: ecommerce, ecommerce strategy, Formation, loyalty marketing, loyalty marketing strategy, mobile commerce, mobile marketing

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