Modern technology continually changes the marketing world with new ways to reach a business’s target audiences and customer base. Industries who struggle to keep up with the new methods see obvious decreases in their sales and profits. In a world where customer loyalty waivers more than ever, these small details determine the success or failure of your business. Pathwwway loyalty marketing then plays a huge role in maintaining sustainability even with constantly shifting markets and customer expectations.
What is loyalty marketing?
Pathwwway loyalty marketing programs help you keep existing customers buying or using your services. They help you win back customers you lost and influence the future spending decisions of your current and potential clients. Loyalty programs vary as much as the businesses who use them. Take the time to research which ones work well for businesses within your industry and what your competitors might be doing to keep their customers away from your business.
Technological Impacts on Pathwwway Loyalty Marketing Programs
The advent of Google analytics and other data compiling gives business owners access to valuable information without spending a fortune or hiring an expert. Anyone with computer access and the ability to read can figure out how to measure incoming traffic to your website, how often people buy or use your services, and what services or products generate the most revenue. This information can be used to shape your loyalty marketing program.
Allowing customers to access your rewards programs and your products more conveniently through mobile technologies or social media motivates loyal behavior. The easier it is to buy from you or use your services, the more likely people are to do so. Let them see how many rewards points they are earning every time they access their mobile account. Then watch how fast they start to use them and actively try to accrue more. Businesses have more access to their customers than ever and you can greatly increase your customer base and profits by taking advantage of that connection in the right ways.
Three Examples of Effective Modern Loyalty Programs
The programs listed below are great examples of how you can use modern technology to communicate with your customers and inform them about the advantages of joining your business’s loyalty program.
The electronics mega-center, BestBuy, offers a tiered rewards program with significant differences between the three tiers. The first level, “My BestBuy,” is free to join and offers members half a point for every $1 spent in store or online. The second level, “Elite,” requires at least $1,500 of purchases made in one calendar year and members earn 1 whole point. The final and highest level, “ElitePlus,” must make at least $3,500 in purchases with BestBuy and they earn 1.25 points. Not only do the purchase points influence consumers to shop with BestBuy in general to earn the rewards, they also increase the average amount of items purchased since the more they buy, the more points they earn.
The differences follow throughout the rewards. Things like length of time to make a return increasing from a standard 15 days to 30 days for Elite members and 45 days for ElitePlus, fewer restrictions on the free 2-day shipping as you move up the loyalty ladder, and access to exclusive special sales, offers, and customer service lines. The incentives encourage repeat purchases and turn your one-time customers into your loyal base.
Sephora also offers tiered loyalty marketing program with supposedly never-ending beauty rewards for their most loyal customers. The free program does not require any purchases before joining, but it still offers members a free birthday gift and free beauty classes in Sephora stores. They offer 2-day shipping for $10 per year to first and second tier members.
The second level, known as VIB, get the first birthday gift and beauty classes along with special seasonal savings and unique, handpicked gifts on occasion. Sephora also offers them one free custom makeover in store. Customers get VIB access after spending $350 in one calendar year. Since customers must reach the spend level every year for their membership to be renewed the following year, they feel obligated to spend more to gain the same benefits.
The final and highest level is known as the VIB Rouge and includes all the things offered to the first two tiers. Since customers must spend $1,000 to be a VIB Rouge member they do not just get one free custom makeover, but as many as they want. They also receive 2-day shipping for free along with access to a private help and order hotline as well as invitations to VIB Rouge member only events.
Starbucks employs two very effective loyalty marketing programs that Pathwwway loyalty marketing highly recommends, points per visit and prepayment. Starbucks offers prepaid cards for their customers to load with money. Since the consumers already allocated the funds to be used at Starbucks, it increases their repeat business almost 50%.
Offering rewards points every time someone buys something, not necessarily for every dollar they spend, is another great incentive. It does not generate as much revenue as if they paired it with the points per dollar, but still works as a potent motivator to shop at Starbucks and not Dunkin’ Donuts. They recently updated their program to allow their version of points, stars, to be earned on every dollar spent as well.
Other benefits received when you join the Starbucks rewards program include a free gift on your birthday, the ability to order before you arrive at the store and then pay by phone once you get there, free in-store refills on regular coffee, and access to member-only events and offers. They have a second, higher tier that gives members access to earn double stars on certain days of the month, a specialized gold card, and an extra reward after every 125 stars earned.
If it were not for modern technologies, many of these efficient Pathwwway loyalty marketing programs would not work. How do you allow someone to pay directly from their phone without a mobile application? Harnessing these advancements and applying Pathwwway loyalty marketing techniques allows smart companies to increase their customer base and reach new markets while spending very little.