Loyalty is the Engine of Marketing
Many marketers today have a misconception about loyalty being a marketing campaign or a technology platform to generate higher revenue. However, loyalty in its true sense translates to more than just marketing. Generally, to build competitive loyalty brands passionately approach consumers with several attractive offers, incentives, and discounts only to find their marketing campaigns ineffective. What does help to build a long haul loyalty? According to Kantar Retail survey, 71 percent of consumers now claim that loyalty incentive programs don’t make them loyal at all. It is evident from this survey that expects brands offer them value rather than discounts or rebates.
Experienced marketers are of the opinion that it is important for companies to prove loyalty first rather than demand it from them. Surprisingly, the last decade witnessed that for marketing and technology, brands that were successful at creating a superior level of loyalty survived the tumultuous journey. While on the other hand, companies that failed to create a strong loyalty base underwent a disastrous phase as they were forced to sell their products at massive discounts.
As loyalty is the ‘holy grail’ of marketing, it helps companies survive even the hard-hitting times. Further, it has been proved that brands that are relevant in their offerings have their customers with less chance of mind swings. According to Accenture findings, companies have lost over $1 trillion to cut-throat competition in the U.S. market alone. Clearly, brands that comprehend the true need of customers and offer product or service relevant to those needs have a higher chance of retaining customers.