As a consumer, you may likely know about loyalty programs and what they offer. Or you may also be a member of a loyalty program yourself. Most consumers don’t know that most of these loyalty programs aim to uncover customers’ details and information, that is, data.
Now, this isn’t particularly a bad thing, but most customers are less aware of how their data is being used by most companies. In this regard, we will be discussing 6 tips regarding loyalty marketing programs and how they operate.
So, if you belong to any loyalty marketing program or programs, this article will seek to uncover some loyalty marketing strategies most companies use to retain their customers and boost their sales. You can see this as classified information that isn’t privy to many. Let’s delve into the business of the day.
Customer retention means data collection.
Loyalty and reward programs are a strategic and tactical way employed by companies to attract new customers and retain existing ones. You can see this by way of the freebies, deals, promos, and products offered as incentives by this company. While this isn’t a bad thing particularly, customers have the right to know how their data is being used. In other words, customer retention is a smart way to garner more data.
So, before you sign up for that loyalty program, you should be wary of the kind of information you give. In this regard, you want to give information that isn’t too personal or that you don’t mind giving.
The data brokerage industry
Now, when you sign up for the offer that comes with loyalty and reward programs, you really don’t know where your data is being taken to. As an eye-opener, most of these data are sold to companies. So, you want to be wary of the kind of loyalty marketing program you partake in.
If the brand isn’t a trusted one, we advise that you think twice before signing up for their loyalty program. This is because most data brokers can go a step further and create websites where they funnel data. This website tends to convince unsuspecting users into giving up their personal data for a freebie, a product, or a service.
Data brokers go on to sell these data to companies. In this regard, you should only sign up for loyalty programs that you trust.
Now, relevant offers are also one of the secrets of loyalty programs. Some customers know about this and have no problem with it. This is because they don’t mind their data being used as long as they keep receiving relevant and profitable offers from the company by way of loyalty programs.
This type of reward program shows an in-depth understanding between customers and brands. This is also somewhat beneficial as it seeks to forge a long-term relationship between customers and companies.
Plus, this is also somehow safe, given that companies who make use of this loyalty marketing strategy are reputable organizations that won’t risk denting their reputation.
Technological advancements have made it very easy for consumers to shop with their mobile devices. This has also made loyal programs more efficient as companies can connect with customers seamlessly with the use of mobile apps and the like. However, while this may look absent-minded, consumers need to be aware that these technological strategies are also a way to harvest the personal data of their consumers. Most consumers are aware that their data are being used, but they don’t mind, given that these companies provide them with relevant offers.
As a company using technology to offer loyalty and reward programs, it’s beneficial to both you and your customer as long as you keep making valuable offers. However, companies need to be wary of their loyalty marketing strategy as they don’t want to come across as evasive.
Preferential treatments for profitable customers
It is only normal for companies to give preferential treatment to their profitable customers. As a consumer who patronizes a company often, you should understand that you are entitled to some professional treatments. Don’t be surprised if you get presented with exclusive loyalty programs. This is often a strategy companies use to retain their profitable customers.
This can be seen by way of gifting profitable customers special gift cards, movie tickets, exclusive discounts, and the likes.
Now, you may be surprised as to how disloyalty programs work. Maybe if you knew what is disloyalty programs actually were, you would understand better. And yes, we will tell you. You see, disloyalty programs are strategies used by a collection of companies to make more sales and build customer relationships.
For instance, a group of cafes can come together and start a loyalty program that allows a coupon from any of the shops to be redeemed in any of the shops. This means that you can partake in a loyalty program in shop A and redeem your reward in shop B. This loyalty marketing strategy is often used by a group of companies. This way, a string of companies can keep the same customers, and in the end, everyone is happy.
With what we’ve discussed, you should have a background understanding of how loyalty programs have changed the world of business. The loyalty marketing strategies discussed in this article should give customers an insight into how their personal data is being used. In the end, loyalty and reward programs are often harnessed by reputable brands and businesses. In this regard, before you give out your personal detail, ensure that the company is trustworthy and has been around for quite a while.
Customers should understand that loyalty programs aren’t a shady way to extract data. Loyalty marketing is a concept, and most reputable brands are going about it the good way, while data brokers masquerade themselves as brands to mine data. As a customer, you should have the discernment to note the difference. Stay safe and healthy.