According to data cited in Persado’s April 28th webinar, roughly 75% of companies say they provide their customers with excellent personalized consumer experiences. But here’s the kicker: 52% of consumers disagree, feeling like they are just another cog in the generic consumer marketing machine.
During our “Lessons in Loyalty: How to Drive Stronger Results from Loyalty Programs” webinar on April 28, Alex Oleson, Senior Director of Vertical Strategy at Persado, guided attendees through the complicated—yet important—world of customer loyalty programs.
With loyalty being such a key component of driving effective marketing campaigns, businesses should be maximizing the value of their customer base. However, as more and more companies are forced to take cost-cutting measures, the amount of resources they have to expand their brands can be drastically reduced. Keeping a customer and continuing to sell to them is less expensive than finding a new one—which is why it’s troubling that loyalty programs are currently taking a hit.
The pandemic saw once-common social rules get flipped around. No more do consumers believe business deals need to be completed in person or that fine-dining can only take place in a restaurant. The abrupt change in social conveniences forced consumers to re-evaluate how they interact with their favorite brands, and 77% of consumers engaged in new buying behaviors between 2020 and 2021, according to data from Bond & Visa cited in our webinar.
While the prospect of bringing in a new audience sounds rightfully appealing, it is up to 25 times more expensive for a company to acquire a new customer than it is to keep a loyal one. In fact, these loyal customers in the top-performing loyalty programs bring in up to 25% more revenue than the rest of their market base, Bond & Visa reports.
Of course, there’s another catch. Consumers only engage with half of the loyalty programs they are members of. How can brands rise above the noise? Some of the key takeaways included:
Loyalty programs have always been important, but they are now becoming even more so. Brands need to maintain strong customer relationships, and one of the best ways to do so is by improving customer communication. As the only AI content generation and decisioning platform to automate on-brand, personalized language at enterprise scale, Persado connects you to your customer everywhere that words matter.
By delivering more personalized messages at the right time, through the right channel, and with the right motivating language, organizations can produce up to 41% higher engagement rates from just their existing customer base alone. This increase in impactful communication strengthens loyalty programs, allowing them to potentially achieve 250% more revenue—a big win when working with a smaller budget.
Missed the webinar? You can watch a recording of the presentation here.