Over 50 percent of adults in high-income households (earning $200K or more per year) are willing to switch brands in order to — wait for it — use a coupon? And 47 percent of consumers are likely to switch brands within 24 hours of receiving bad customer service.
In this day of promotion, price-sensitivity and instant gratification, is the concept of loyalty officially dead?
Savvy marketers know the value of authentic customer advocates to drive repeat purchases, lower acquisition costs and maximize profits. To acquire loyal customers, how do you even get them? When you do get them, how do you keep them?
A recent McKinsey Research study reveals the average household signs up for over 23 reward programs, with promise of exclusive offers, discounts and coupons. While 94 percent of consumers sign up for at least one brand loyalty program, only half of the programs are used.
Loyalty programs should be focused as much — if not more — on retention as acquisition. Keeping consumers “meaningfully engaged” has the strategic importance to loyalty programs that year-round practice has to a team laser-focused on winning the World Series. Let’s face it, consumers are fickle. Their preferences and interests change as quickly as they can swipe left inside an app. Here’s the good news: the faster they earn/spend their loyalty points, the sooner they will come back, shop and earn some more.
An arguably parallel opportunity lies in activating loyal advocates. These customers’ words lend credibility to your brand’s promise and quality. The more sharing chances you create — directly/indirectly earning your loyalty points — the more people will share.
Peanut Labs Loyalty Platform helps companies drive brand engagement by accelerating rewarding consumers across the overall customer experience — giving shoppers more ways to earn and more reasons to spend gives advocates more sharing opportunities and talkers more reason to share more feedback and motivations.
Peanut Labs wants to help brands create more “talkers” by rewarding shoppers with a unique opportunity to earn more points by sharing authentic feedback and opinions on products and services. Peanut Labs believes the future of loyalty lies not just in rewarding shoppers for their purchases, but in the time they spend on your site or app.
by Noman Ali, Co-Founder and CEO of Peanut Labs
Published on TotalRetail Magazine, September 2nd, 2016
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