What is loyalty marketing?

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Applying loyalty marketing to your strategies has long been an essential issue.

In fact, it is no longer enough to just sell, now you need to build loyalty . So you should start focusing much more on keeping your customers close to you than on increasing your sales. After all, achieving the first goal will lead you to the second without you even realizing it.

If you have an e-commerce and you are implementing techniques to retain your customers while still attracting new ones , loyalty marketing is one of your options with the most future.

According to data from B2B International , 54% of B2B marketers switzerland number screening acknowledge that making customers more loyal is a challenge. But achieving this is a 10% increase from the previous year.

There is no doubt that customers expect more from brands than ever before. And loyalty marketing was created to reward that loyalty.

Defining loyalty marketing
Defining loyalty marketing

Basically, loyalty marketing refers to a set of incentives that encourage existing customers to make repeat purchases, but above all, to develop special connections with the brand.

The history of loyalty marketing goes back years. In fact, it begins with the well-known “ frequent flyer ” program. Which, if you remember, consists of saving money and accumulating points to invest in other things. Its success was such that since then, the points model is still used, especially by credit card companies and airlines.

That doesn't mean it can't be applied to any other sector, though. In fact, it works wonders in any industry.

To understand the value of loyalty marketing and customer loyalty, you should know that a satisfied customer can spend up to 10 times more in your store than on their first purchase. In addition, it has been proven that it is 6 times more expensive to acquire a new customer than to retain an existing customer .

Therefore, applying loyalty marketing strategies is one of the most profitable decisions you can make to increase your income.

But how else can it help you?
You'll increase customer lifetime value. In other words, it's much easier to communicate with someone who already knows you. Not to mention sales.
You will build closer relationships.
You'll be creating brand ambassadors without even realizing it. If a customer is loyal, they're more likely to talk about you on social media.
You will avoid price competition. People who really value a brand are less sensitive to price differences.
However, it is not difficult to understand why so many brands have chosen loyalty marketing as their star resource to achieve better results. However, these results are not achieved overnight. It needs to be well-crafted and a lot of planning.

"But I have a small e-commerce, will any loyalty marketing strategy work for me?"