Traditionally in companies, the loyalty strategy is the great forgotten one. Business objectives are focused on . Acquiring new customers and not so much on maintaining and promoting current ones. Although we already know that it is easier and more profitable to retain current customers, the clear trend is to gain new ones. Indeed, there are products or services in which the repeat purchase is in the medium-long term or the probabilities of a second purchase tend to be zero. But what happens with the rest of the companies? Why aren’t there great experts and investments in loyalty? (compared to efforts to attract new customers). Of course there are great examples of loyalty programs . That work and are even a fundamental pillar of the business. But what happens with most companies?
The pandemic has made loyalty become a necessity
When we talk about this type of loyalty programs or clubs, cards that accumulate points for purchases top industry data quickly . Come to mind. Is this a way to build loyalty or push sales based on discounts? They look similar, but they are not the same. What will happen when discounts are not attractive or we stop giving them. Some time ago I reflected on loyalty clubs based on points cards and proposals to improve them and I think that things have not changed too much in terms of strategies. Let’s see if . COVID and its consequences make companies react. If we go by the data, I think they would be missing a great opportunity. As a headline to start making us reflect, I take this information from Mckinsey: 75% of consumers have changed their purchasing habits since the start of the pandemic, and what is even more relevant for loyalty, 39% have changed brands or stores
Keys to maximizing loyalty program results
The first point of analysis of the article focuses on the acceleration of sales, playing with the . Value of the points when redeeming them for Phone Lead services or products. And for this he uses the real case of an airline. For strategic principles (because of the damage they can cause in the medium and long term to the company), I am against the. Indiscriminate use of discounts as a lever to boost sales. It is a race that leads us to the devaluation of the brand, to minimal sales margins and to a major crisis. It is obvious that a good . Customer experience at a reduced price is a way to attract them to a next purchase. But to what extent is your loyalty to the brand based on these specific discounts? (there is the risk). How easily/difficult can you be attracted to another offer and switch brands? If this happens, how do we recover it? . With more discounts.