The 3 Reasons Why You Should Pay Attention to Loyalty Marketing

Today’s marketplace is completely dominated by internet technologies and platforms. The global — and even local — market is no longer a static place with little competition. On the contrary, the internet has given birth to fierce competition among different businesses. Indeed, if you run an online business, you almost certainly have at least one competitor in your niche market — and even if your business isn’t dependent on the internet, you’ll still have several competitors. Since information is being exchanged so rapidly through internet platforms, any little advantage can yield important profits and growth. That’s why you need to start thinking about loyalty marketing.

That’s great, you say, but what exactly is loyalty marketing? Simply put, loyalty marketing taps into the loyalty of customers by creating strategies designed to enhance relationships between the customer and the business. With this in mind, consider the following reasons to get to work on developing a loyalty marketing strategy:

1. Customer retention matters. Really. Remember those competitors you worry about? Well, if you can find a way to ensure that customers keep coming back to you — instead of your competitors — you’ll have a critical advantage and your profits will start going up. Repeat customers are extremely important to the growth of your enterprise. And guess what? You gain repeat customers by developing a sense of loyalty in them.

2. What will happen if the value of your business goes down? Suppose you haven’t taken the time and effort to build a loyal following. Now imagine that, for whatever reason, your business model has been rendered irrelevant by some new competitor that makes use of an unanticipated technology (this is called “technology disruption” and is something that business strategists must grapple with eventually). If you have a loyal customer base, at least you won’t sink. You might have some hard times, but you won’t be completely dead in the water.

3. Loyal customers are marketing agents. That’s right: when you have loyal customers, they’ll inadvertently be marketing agents for you. Why? Because happy customers talk about your business, your services, your excellence. This, in turn, will create a larger number of customers, allowing you to edge out your competition.

That’s it for now, and start thinking about how you plan to go forward with a loyalty marketing strategy that works.