How Different Customer Loyalty Programs are Changing the Dynamics of the Industry?
For any brand the most important aspect is the customer loyalty. Without a loyal customer, a brand cannot establish itself in the market. Hence, for every brand it is necessary to have a detailed understanding and strategy of employing a customer loyalty program.
But before this, let’s understand in brief what a customer loyalty program is, and how it functions.
Customer Loyalty Program is simply an act of recognising and rewarding the loyal customers of the brand by offering them certain products and rewards. These loyalty programs ensure that the customer feels rewarded and recognised for their continuous efforts and purchases with the brand.
These rewards can be cashbacks, free gifts, vouchers or discount coupons as well. Further depending on the brand, these rewards can also include the exclusive merchandise of the brand as well, making the loyal customers a part of the family.
Benefits of Customer Loyalty Programs
While integrating a customer loyalty program one should consider the various factors such as the cost for the company and most importantly how it would make the loyal customers feel.
Apart from the fact that customer loyalty program are used to maintain the loyal customer, there are several other benefits of the program as well. Here are some of the most common benefits observed from a customer loyalty program.
- Customer Retention
Using customer loyalty program a brand can easily retain the old customers by offering them various rewards and recognition. This activity helps brands to regain the customers trust and make them stay for a longer period of time with the brand.
- Increased Sales
Integrating customer loyalty program a brand can increase their sales easily, as during these activities the loyal customers are tend to make more purchases and also refer the same to their peers. This helps the brand to increase their sales, and make more profit.
- Brand Recognition
Launching any form of promotion or loyalty program in the market will allow the brand to gain more and more recognition. This increased brand recognition will help the brand to offer more and more exciting offers for the loyal customer, hence, making them feel rewarded.
- Increased Referrals
Once a loyal customer is rewarded, they will feel valued and hence, will refer the brand to their peers as well. This increase in the referrals will allow the brand to gain new customers and increase their sales.
- Increased Revenue
Increased referral results in increased sales which in the end increases the revenue generated by the brand, hence more profit. More profit further indicates more and more loyal customers are valued and recognised
Different Customer Loyalty Program
In this cut-throat competition in the market, all the brands are fighting to grab the attention of its customers. However, the attention span of a customer is very less, and the fight is to grab the attention for those 4-5 seconds.
Each brand is coming with a different strategy and trying their best to retain their loyal customers, and hence running different campaigns. Some of the most common strategies are discussed below:
- Point-based program
For every purchase that the customer makes, they get a certain number of points which can be further redeemed on a purchase when they have a fixed number of points gathered (differs from brand to brand). This allows customers to keep making purchases for more and more points, and the final redeem of the points feels like a reward to the customers.
Here you can also browse the Freebucks by RewardPort and integrate the point-based customer loyalty program into your system.
- Tiered Program
This is also a point-based system only, but when the customer has earned a fixed number of points they are moved to a different tier with different benefits and advantages. This feels like an achievement to the customer once they are upgraded to a different tier further motivating them to make more purchases.
- Paid Program
This program is simple to understand as the customers in this category pay a certain amount of monthly or annual fee to avail the VIP benefits or become a part of the VIP club. This further offers them different benefits on their purchases such as one-day delivery, guaranteed cashbacks, easy flight bookings, etc.
- Value-based Program
This is one of the most creative loyalty programs in India. Here instead of giving points or rewards, the customers are made to become a part of a value-based initiative taken by the brand such as contributing towards girl child education, or feeding the homeless.
These gestures make a strong impression on the customer, making them remember your brand and get associated with it. Further, customers also refer the brand to their peers resulting in more brand loyalty and recognition.
- Cashbacks
This is one of the most commonly used customer loyalty program being implemented. Here customer loyalty is rewarded by giving them a certain amount of cashback on their purchase.
Loyalty program leaders such as RewardPort offer various different programs that can be implemented here such as Freebucks, Gamebucsk, etc.
Customer Loyalty Program Uplifting Businesses
Integrating customer loyalty programs in a business is one of the smartest decisions a brand can make, as this allows the brand to not only use this as a marketing strategy but also reward the loyal customers by making them feel valued, and let these loyal customers do the rest of marketing for the brand.
Using these loyalty program company are investing in a long term process and relationship between the brand and the customers that will help the brand to gain more customers and increase their sales & revenue as well.
Apart from this, customers these days don’t feel valued enough by the brand they tend to switch to a different brand, so a loyal customer will purchase a product from the brand they are loyal with even if the price is even a bit higher than others. Maintaining the customer loyalty program is a long-term investment that the brand is making today for its future.
RewardPort Customer Loyalty Program
Leading loyalty program providers such as RewardPort offer various different programs in the market to cater to the wide range of the clients and their needs. The programs by RewardPort are designed to cater to the different needs of different clients.
Some of the programs offered by RewardPort are CineRewards, Freebucks, Gamification, Scratch2Win, Sweepstakes. For more information get in touch with the experts here.
Frequently Asked Questions: -
Customer loyalty programs are integrated to recognize and reward the loyalty customers for their efforts and contributions toward the brand throughout the journey. It can be of different forms depending on the brand such as cashbacks, discount coupons, referral bonus, etc.
Customer loyalty programs allow brands to reward the loyal customers and it helps to retain the customer, increase their customer base and generate more leads as well.
Different rewards in loyalty programs include:
Cashbacks, discount coupons, point-based systems, vouchers, free memberships, official brand merchandise, etc.
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Effective Consumer Sales Promotion: How it can transform your business
The fight for customer attention is very tough, and every company in the market is fighting over the chance to grab customer’s attention. The question here is- how many of them are successful in doing so? Are they achieving what they had targeted for?
For some the answer is yes, while for others it’s a big no. The reason being that the competition out there is neck-to-neck, and when it comes to sales strategies there is no holy grail or set standard procedure. However, there still are certain tips and tricks to help you increase and elevate your company’s sales.
Tips for Better Sales Strategy
- Selecting the right target audience
- Rapidly changing customer needs
- Best experience makes the sale
- Selling a solution to problems
- Devise a good sales promotion strategy
Decoding Sales Promotion
A consumer sales promotion or sales promotion is a marketing strategy often used by different brands to create awareness for their products and boost their sales. These promotional activities or campaigns are available for a limited time which creates a sense of urgency among the customer and influences them to make the purchase.
These strategies are valid for both B2B or B2C companies, the only difference is the target audience and the process of promotion. Below we have listed various sales promotion activities often used by different companies.
- Free Samples
Companies often distribute free samples when they are launching a new product in the market. This strategy offers dual benefits to the brand, first they are creating awareness about the coming product.
Secondly they are creating a trust bond with the target audience by handing them the products. These free samples encourage customers to try and even offer their feedback and reviews on the product.
- BOGO Offers
Buy one get one offer is used by various companies for one major reason, clearing out the stock of the product that has not been selling great. This is an added advantage for the customers as they are getting a good deal of two products at the price of one.
Additionally, this combo offer attracts more customers to your product and brand, eventually increasing the sales.
- Free Trails
Allowing one time, 15 days or 30 days free trial is a very common practice that we have seen usually in certain gyms, mobile applications, automobiles and OTT platforms. This allows the customers to try your product, gain some confidence and then make the purchase.
This strategy allows customers to build trust in the brand before making a purchase and offers the brand to provide the best experience to ensure the sale.
To offer clients with this service RewardPort has designed Subscription Nation. With this you can send gifts or free trials for a limited period of time 3,6, or 9 months as per your convenience.
- Free Gifts
When we shop from a particular store or brand quite often, at times we have received certain free gifts. These are loyalty programs run by the brand to reward the customer loyalty toward the particular brand.
However, at times free gifts are also distributed to customers in a random selection process. These free gifts provide a sense of recognition and bonding between the customer and the brand which ensures more purchase by the customer.
- Cashbacks
From a customer’s perspective getting a cashback because you just spent some amount of money on a purchase feels rewarding. It is exciting to receive money because you spent some money.
These cashback offers allow customers to make purchases of a certain amount which is one of the most common consumer sales promotion strategies being used by different brands.
- Contests
Often there are different contents running in stores offering certain prizes, or a discount to customers. This creates a sense of attachment with the brand as you get involved in these contents, be it in the offline store or on the websites.
These contests can be categorised as spin the wheel, scratch & win, lucky draw, or first ten customers. This consumer sales promotion strategy is built to engage the customer with the brand and feel the connection between the two.
Scratch2Win by RewardPort can be integrated into your brand for introducing the factor of gamification and offering rewards to your customers. With Scratch2Win customers can scratch the cards and will be awarded with some gifts, making it more exciting for the customers.
- Coupons
Discount coupons are one of the most common approaches to consumer promotion. On purchase of a certain product or amount, customers are given discount coupons to be availed on the next purchase. This ensures that the customer is engaged with the brand for a longer period of time.
Availing these coupons ensures customer loyalty and makes it simpler for the brand to target further consumer sales promotion strategies for such customers, offering additional benefits.
RewardPort’s My Choice of Gift is an electronic gift voucher that can be redeemed by the customer for purchasing any online products. With this customers can make purchases of products of their own choice.
- Referral Rewards
Referral bonuses or discounts are the strategies used by the majority of online stores. In this approach, there is a certain reward for the customer if they refer their friends or family members to either install and register on the store or make a certain purchase.
This also allows brands to expand their business beyond the regular customers, and spread awareness about their products and brand.
CineRewards by RewardPort offers movie vouchers for customers which can be integrated in your brand’s referral rewards and lure more customers to refer your brand to their peers. This will enhance the marketing of your brand, making it appear more customer centric and appealing to them.
- Free Shipping
Most online stores are now offering free shipping either on the purchase of a certain amount or on select items. With this consumer promotion strategy brands are encouraging their customers to make purchases from online stores.
This allows brands to mark their presence in the digital world as well, further enhancing their customer base and increasing the sales.
How can it Transform Businesses?
For any business be it B2B or B2C, without customers there is no business. Businesses are adopting various consumer promotion strategies to enhance their business, increase sales and generate more revenue. These consumer promotion techniques can vary as per the requirements of the business and target audience.
The above-listed are some of the most common consumer sales promotion strategies to be adopted. These methods have been performing well in the market and have helped businesses grow further.
With digital marketing and other social media channels being available, consumer sales promotion strategies are becoming more aggressive. Majority of the brands have an online presence and can direct their promotion strategies on these channels for better results.
Moreover, involving customers in a digital channel becomes easy as the customers are present online most of the time and can be easily involved in the promotion activities.
Consumer Promotion Activities by RewardPort
RewardPort is a leading loyalty solution provider in the industry, with various solutions available from consumer promotion to loyalty solutions. Embedding these consumer promotion activities becomes easier with RewardPort because of the experienced team it consists of and the diverse portfolio of customers.
RewardPort is the right partner for you if you are looking to involve consumer promotion techniques for your marketing strategy.
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11 Consumer Sales Promotion Techniques Every Business Can Use
With the rapidly increasing competition in the market, brands have become more conscious about attracting and retaining their potential customers. The marketing strategies of businesses are not just limited to advertising now, but they also use different sales promotion techniques to achieve their objectives. Studies have shown that most consumers try a new product only when they see an offer running on that. This is how powerful consumer promotions can be. Many consumers would have never tried a product if they didn’t get an offer on it. You might be missing out on many potential customers if you don’t run a sales promotion offer.
What is Consumer Sales Promotion?
Consumer sales promotions are the marketing strategies businesses use to boost their sales and achieve other short-term business goals in a limited time frame. The goal of a sales promotion program can be to increase sales, improve customer engagement, boost brand awareness, or anything that benefits a business in any manner. Almost every brand now uses sales promotion strategies to attract new customers and increase sales of their products. Some of the most effective consumer sales promotion techniques are listed below:
1. Free Samples
Offering free sample products especially works when your goal is to introduce a new product in the market or to promote a less popular product. It is a great way to make your potential customers try your products by eliminating the risk. Consumers are often afraid of spending their hard-earned money on something that they are not very sure about. This is why offering free samples or free trials is the best way to make them try a product that they might have never considered otherwise.
2. Early Bird Discounts
Early bird offers are the discounts that brands provide their customers on making a purchase or booking in advance. This sales promotion strategy is generally used by airlines, premium hotels, and other travel-based companies. These are very short-term offers under which a brand offers an additional discount on booking a flight or a hotel in advance.
Even e-commerce businesses can run early bird discount offers by providing additional discounts on specific purchases in the first few days of an offer. For example, if you are running a 20% discount offer for a month, you can provide a 30% discount to those customers who make a purchase (above a certain amount) within the first 5 days of the offer.
3. Gift Coupons
Offering gift discount coupons for future purchases is another sales promotion technique that doesn’t only help you boost sales, but is also effective in retaining customers. After your customer makes a purchase, you can send them a discount coupon code via email, text message, or you can even give it to them physically. The percentage of discounts may vary depending on the amount your customers spend. The more a customer spends now, the higher discount they will receive for their next purchase. Make sure that you keep these discount coupons’ validity short to make your customers come back more often.
4. Gift Products
Another great idea is to gift free products to your customers on making purchases above a certain amount. This strategy is most widely used by supermarkets where customers get free products on achieving the required spending threshold. The higher a customer spends, the more valuable free product they receive. For example, you can offer a product worth Rs. 100 free on purchases above Rs. 1,000, a product worth Rs. 500 free on purchases above Rs. 5,000, and so on. This sales promotion technique is not only effective in motivating customers to spend more but also allows you to make your customers try less popular products from your store.
5. Lucky Draws
This is a less popular, but highly effective sales promotion strategy to boost your sales or increase brand awareness in a short span of time. Launch a lucky draw offer and make as many customers as possible aware of it before the offer starting date. In such offers, a brand generally comes up with a minimum spend threshold that the customers need to achieve in order to enter the lucky draw contest. Out of all the participants, winners (generally three, five, or ten) are randomly selected and offered premium gifts.
For example, you can run a lucky draw contest with specific conditions, such as a minimum spend of Rs. 10,000, a short pre-specified offer period, a limited number of winners, and a prize for each winner. Every customer who spends above Rs. 10,000 within the offer period becomes eligible for the lucky draw. If running a lucky draw contest, make sure that you select winners randomly through a transparent process.
6. Happy Hour Sales
Happy hour sales are very often run by e-commerce businesses. These are flash sales valid only for a short duration, generally a few hours. Under a happy hour sale, you can offer specific products at heavy discounts for a short duration. When an offer is valid for a short period, it creates a sense of urgency among your customers. No customer wants to miss such a great deal and hence, they are motivated to make a purchase before the offer ends. When running happy hour sales, you must ensure that you offer really good discounts that can encourage your customers to make a quick decision without having a second thought in mind.
7. Cashback
Cashback-based sales promotions are one of the most traditional yet successful strategies to keep your customers coming back. When you offer your customers some cashback after every purchase, they feel like they are receiving something in return for their purchase. Getting something, even if it’s a little amount, is always better than getting nothing. So, if you are offering a small percentage of cashback on all the purchases your customers make, you are giving them a reason to prefer your brand over your competitors. You can even offer cashback in the form of store credits that they can use against future purchases.
8. Free Shipping & Returns
By offering free shipping and returns on your products, you can encourage your customers to buy your products at zero risk. If they don’t like it, they can always return it (though within the pre-specified time period only). However, only a few consumers return a product after purchasing it. By offering free returns, you can eliminate your customers’ fear of wasting their money on a new product.
9. BOGO Offers
Under a Buy One Get One deal, you can either offer one product for free with another product or provide one product at a discounted price with another item. When customers see a BOGO deal running, they are tempted to avail of its benefit as they don’t want to miss out on the opportunity to get two products at the price of one. You can use a BOGO deal to boost sales for a specific product or to clear out old inventory. Also, make sure to keep the offer validity short in order to create a FOMO among your customers.
10. Sweepstakes
Sweepstakes are just a different type of lucky draw contest where the winner is selected completely at random. Generally, there is no minimum spending requirement to enter a sweepstakes contest. All the customers who have made a purchase during the specified period, or simply all the registered users on an e-commerce website are eligible to participate. Any customer can be selected at random and provided with a pre-specified gift.
11. Loyalty Points
Almost every business is now having a loyalty program under which they offer a fixed percentage of loyalty points to their customers after every purchase. Customers can later redeem these loyalty points against several options available, such as discount coupons for future purchases, gift vouchers for other brands, and other products. Offering continuous loyalty points is an effective sales promotion strategy to boost brand loyalty and encourage repeat purchases in your business.
Choose RewardPort As Your Sales Promotion Partner
RewardPort, being one of the top sales promotion companies in India, can execute a consumer promotion program exclusively for your business taking every small detail into consideration. The team of marketing experts at RewardPort analyzes your business requirements carefully and comes up with a sales promotion plan that works well for your brand. With plenty of reward and redemption options, RewardPort becomes a great option to consider when looking for sales promotion companies.
Frequently Asked Questions: -
Consumer promotion is important for businesses to attract new customers and make them buy products at discounted prices. Studies suggest that many consumers like to try new products only when offered at discounts and not otherwise.
To measure the effectiveness of your consumer promotion offers, you can use several metrics, such as the profits before and after promotions, increase in sales after promotions, increase in the rate of repeat purchases, etc.
Social Media has become a powerful tool used for sales promotions by businesses. Social media platforms can be very effectively used for boosting brand awareness. The social media contests run by brands are often much more successful than other types of sales promotions.
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5 Consumer Loyalty Programs for Automotive Companies
Due to the Covid pandemic, automotive companies have seen really hard times in the last few years. Their businesses were badly impacted by the pandemic. Now, vehicle manufacturing companies, dealerships, repair shops, and other automotive service providers are coming up with different ways to stand out in the competitive market and bring their businesses back on track. One such unique measure that can help automotive companies get success is a loyalty rewards program. Loyalty programs for automotive businesses work differently than other types of brands. In this article, we are going to discuss some top loyalty program ideas for automotive companies:
1. Tier-Based Loyalty Programs
Tiered loyalty rewards programs work effectively for almost every type of business including automotive. It has become a new trend to run loyalty programs with multiple tiers. While several businesses run paid tier-based programs, a better idea is to include free as well as paid tiers in your loyalty program. By doing this, you can encourage all your customers to participate in your loyalty programs by removing the necessity of paying a fee. Those who want more premium benefits can get into paid tiers and the ones who do not want to pay, can continue with free tiers.
With each higher tier, customers become eligible for more exclusive benefits. You can even run a fully free-tiered loyalty program, where customers do not get into higher tiers by paying higher fees but by spending more on your brand. For example, every customer enters the first tier when they make their first purchase from your brand. After spending a certain amount or availing of your services a certain number of times, they get promoted to higher tiers and can get better benefits. For example, you can offer 1 complimentary car wash every quarter in the first tier and 2 free washes in the second tier, and so on.
2. Community-Based Loyalty Programs
Community-based loyalty programs are one of the best ways to make your customers feel special and boost customer engagement. As an automotive company, you can create a community of your members (the owners of your brand’s cars) and provide them with additional benefits. Some common examples of rewards or benefits in a community-based program include personalized services, access to members-only events, and access to a group or community of like-minded people.
This type of loyalty program encourages your customers to stay connected with your brand and avail of your services on a regular basis. Expecting repeat purchases as an automotive brand is a long process as people do not buy cars every day. What you can do is just build a community of your customers and allow them to interact with each other. This doesn’t only boost customer loyalty but is also very effective in improving customer engagement.
3. Free Maintenance Plans
Existing customers of a company contribute to more than 65% of its total revenue. This data is sufficient to prove the importance of retaining your existing customers. It might need some extra effort from your end but will be totally worth it. You can offer complimentary maintenance plans with your services, customized welcome kits, and other exclusive rewards to your customers. When a customer purchases a car, offer them some complimentary services or at least some service discount coupons to ensure that they come back for servicing.
An interesting idea is to run giveaway contests on your social media accounts and offer one-year complimentary maintenance to the winners. This will help you boost customer engagement and increase traffic on your website or social media accounts. Small efforts like sending car maintenance tips via emails or giving a thank you card after they avail of your services can also have a huge impact on customer loyalty.
4. Rewards Program for Carwash Services
You can also integrate your loyalty rewards program with carwash services. Run a reward-based program and allow your customers to earn reward points every time they avail of your services, including car washes. They can later redeem these reward points against future car washes to get discount coupons for other services. Some car wash companies run such loyalty programs, which do need even require customers to register or sign up for the program. Every time a customer avails of a car wash service, their vehicle is recognized through the license plate and reward points are credited to their accounts.
5. Loyalty Rewards For Every Customer Action
Another great loyalty program idea for automotive companies is to run a rewards-based loyalty program and offer loyalty points for every customer action. When a customer purchases a car or any vehicle, you offer them certain thousand points. As they are not going to repeat this purchase very soon, how can you keep your loyalty program continuous? You can do this by offering reward points for logging into your website, following you on social media, writing a positive Google review, and participating in social media contests run by your company. Apart from this, offer some additional reward points to your customers on their birthdays and anniversaries with your company.
Run an Effective Loyalty Program with RewardPort
Planning and executing a loyalty program for your business might be a challenging process as you have to keep a lot of factors in mind. While building a loyalty program, you need to ensure that the program aligns with your business objectives and is interesting for your customers. This is what RewardPort can help you achieve. RewardPort has a team of experienced marketing professionals who take your business details into account and plan a loyalty program that works best for your brand.
Frequently Asked Questions: -
Loyalty reward programs can be of different types and some most popular ones include reward-based programs, cash-based programs, tier-based programs, and community-based loyalty programs.
In a loyalty program, businesses offer rewards and benefits to their customers for every purchase they make. With these rewards, customers are encouraged to spend more on their brand and they keep coming back again & again. This is how a loyalty program can help businesses in boosting repeat purchases and increase sales.
A loyalty rewards program is a strategy used by businesses to retain loyal customers and boost sales by rewarding their customers for every purchase they make.
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Do Customer Loyalty Programs Work for Manufacturing Businesses?
Customer loyalty programs do not only work for retail businesses, but manufacturing industries can also benefit by running these programs. Intermediaries, i.e. dealers, distributors, and wholesalers, play a significant role in the success of manufacturing businesses. Your end consumers may be loyal to your brand, but they rarely interact with the manufacturers. Therefore, their experiences depend entirely on how your dealers and distributors sell your products to them.
This is where B2B loyalty programs come into play for manufacturing companies. A loyalty program is the best way to increase RoI for your business and encourage your customers (dealers and wholesalers) to provide the best experiences to your end consumers. The loyalty programs for manufacturing companies work differently from the ones that are run by retailers. However, the end goal is the same in both cases and that is to improve end customer satisfaction.
Let us help you understand what are the advantages of loyalty reward programs for manufacturing businesses and how you can implement them:
How Customer Loyalty Programs Can Change The Game For Manufacturing Businesses?
In B2B businesses, the expectations of loyalty programs are very much influenced by the consumer experience. Before purchasing from a manufacturer, the wholesalers and retailers look for various factors, including the manufacturing company’s customer service, in order to enhance the experiences of their end customers. It is because good customer service allows them to contact the manufacturer whenever the end consumer faces an issue.
This shows how customer-centric marketing has taken over product-centric marketing. With this, it becomes essential for manufacturing companies to offer real value to their customers. As a manufacturer, you have to make your partners or dealers trust that you want their business to grow along with yours. When you are able to do this, you get loyalty from your partners as a result.
Your partners may be having other partners as well. What makes them sell your products on priority? It is a good loyalty program. There are various benefits of loyalty rewards for manufacturing businesses. When you offer valuable rewards or incentives to your dealer partners, they become your brand advocates and promote your products among their customers. They put more effort into selling your products so that they can earn more and more rewards.
How To Create a Successful Manufacturing Loyalty Program?
The following tips might help you build a successful customer loyalty program for your manufacturing business:
Focus More on Offering Value
It’s good to offer rewards, cashback, free gifts, etc, to boost your sales. But offering value is the best thing you can do to strengthen your relationship with your dealers, partners, or wholesalers. Offer rewards to your dealer partners not just for making more purchases, but also for participating in education and training programs. Everyone loves to learn and grow while working.
You can create a training program that allows your partners, dealers, and their sales team to learn about your products. Make sure that these programs allow them to develop a few other skills as well. As per research, over 84% of companies or dealers are likely to partner with a business that provides a clear understanding of their goals.
Other types of incentives that are much more effective than discount-based loyalty programs include co-marketing funds. You can offer marketing funds or provide your partner with access to your marketing experts.
Reward Your Partners With Targeted Incentives
Offering target-based loyalty rewards is another great way to make your loyalty program successful. Reward your partners on achieving different milestones, such as completing the onboarding process, and completing a training or certification program that you offer. It is important to make your partners very well aware of your products and services. And incentivized training programs are the best way to do this.
Other than this, you can offer incentives for achieving sales targets. Provide great additional discounts to your customers (dealers or wholesalers) when they perform exceptionally well. This will motivate them to perform even better and drive more sales in the future. You can also reward them for recommending your brand to other potential customers who can become your partners. This is one of the easiest and most cost-effective ways to expand your reach.
You can connect with the best loyalty program providers like RewardPort to create reward programs with targeted incentives.
Offer Personalized Customer Service
You can create a unique bond with your customers by offering them personalized customer service. When you personally address each of your customers, they feel valued and emotionally connected to your business. Send them personalized messages on special occasions and on achieving specific milestones. Studies suggest that over 70% of customers prefer doing business with companies that offer personalized experiences.
A multi-channel service system allows you to assist your customers whenever they need help and stay connected with them. The more a brand interacts with its customers, the better is the customer satisfaction. With a multi-channel service system, you can provide your customers with greater access to your support team and they will be able to interact better.
Good customer service is sometimes enough to hold your partners and make long-term relationships with them. Therefore, you must make sure that your customers are being heard and answered every time they have a problem.
Share Positive Customer Reviews
Consumers trust the review of users of a brand more than the promotions and advertisements of the brand itself. You can share your existing customers’ reviews on social media platforms and let your target audience know how you are performing. You can gather customer feedback through surveys or by asking them to write short testimonials.
You can offer rewards or incentives to your customers for sharing feedback or filing surveys. In case there are some negative reviews, make sure that you work on them in order to retain your existing customers. When you work on your customers’ feedback and let them know about it, they feel valued and are more likely to stay loyal.
Boost Customer Loyalty in Your Business With RewardPort
After knowing the advantages of loyalty reward programs, you might look for the best loyalty solution companies to manage your loyalty programs. Being the top loyalty program provider in India, RewardPort provides you with complete loyalty solutions aligning with your business goals. As a manufacturing brand, you must have a proper strategy to reward your partners as a way to enhance the experiences of your end consumers. This is what RewardPort can do for you. The team of marketing experts at RewardPort analyzes your business details thoroughly and helps you run an effective loyalty program that works perfectly for your brand.
Frequently Asked Questions: -
A consumer loyalty program is a rewards program that businesses run to encourage loyalty among their customers. These programs are aimed at boosting repeat purchases and motivating customers to keep coming back for more & more rewards.
Customer loyalty is important for every business because loyal customers tend to spend more often. Studies have also shown that retaining loyal customers is 5 to 25 times less expensive than acquiring new customers. There are several other benefits of loyalty rewards programs. With time, loyal customers can turn into brand advocates who promote your brand among their friends, relatives, etc, and bring in new customers.
Maintaining customer loyalty is not just about offering rewards and incentives to your customers. Various other factors matter, such as customer service, reviews of your current customers, etc.
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9 Consumer Promotion Strategies for the New Online Business
Consumer sales promotion is an essential part of your e-commerce business. With thousands of e-commerce retailers competing for consumers’ attention, it’s increasingly difficult to build your customer base without a promotion strategy.
Starting a new online business is an exciting but challenging process. One of the key components of a successful online business is a strong consumer sales promotion strategy. Consumer sales promotion is the use of incentives and other promotional tactics to encourage consumers to purchase a product or service.
Or, more specifically, to purchase the product/service from you.
Consumer Sales Promotion Strategies
In this blog, we will discuss nine consumer promotion strategies for new online businesses using the keyword consumer sales promotion:
1. Discount Codes and Coupons
Offering discount coupons is a classic promotion strategy that has been used by businesses for decades. Online businesses can create discount coupons that customers can use to get discounts on their purchases. These coupons can be distributed through various channels such as social media, email, or through the website itself.
2. Free Trials
Offering free trials is a great way to encourage customers to try your products without any commitment. This strategy works particularly well for software and subscription-based services. By offering a free trial, you can convince customers to try out your product, and if they like it, they are more likely to purchase it in the future.
3. Buy-One-Get-One-Free (BOGO) Offers
BOGO offers a popular sales promotion strategy that is particularly effective for products that are bought in pairs or multiples. For example, if you sell socks or shoes, you can offer a BOGO promotion where customers can get one pair free when they purchase two or more pairs.
4. Free Shipping
Shipping costs can be a major barrier for online shoppers. By offering free shipping, you can encourage customers to purchase more products and increase their overall satisfaction with your brand. Some businesses offer free shipping for a minimum purchase amount, while others offer it for specific products or as a limited-time promotion.
5. Loyalty Programs
Loyalty programs are a great way to reward customers for their loyalty and encourage them to make repeat purchases. By offering exclusive discounts, early access to new products, or other perks, you can build a loyal customer base that will be more likely to continue buying from your business in the future.
6. Referral Programs
Referral programs are a great way to tap into the power of word-of-mouth marketing. By offering incentives to customers who refer their friends and family to your business, you can generate new leads and expand your customer base. Referral programs can take many forms, such as discounts, free products, or other rewards.
7. Flash Sales
Flash sales are limited-time promotions that create a sense of urgency and encourage customers to make a purchase quickly. By offering a steep discount or another incentive for a limited time, you can generate a surge of sales and create excitement around your brand.
8. Social Media Contests
Social media contests are a great way to engage with your audience and generate buzz around your brand. By asking customers to share your products, tag their friends, or create user-generated content, you can create a fun and interactive experience that encourages customers to engage with your brand and increase their loyalty.
9. Bundling Products
Bundling products is a great way to increase the average order value and encourage customers to try new products. By offering a bundle of complementary products at a discounted price, you can encourage customers to make a larger purchase and increase their overall satisfaction with your brand.
Consumer Sales Promotion with RewardPort
Consumer sales promotion is an effective way to encourage consumers to make a purchase and build brand awareness. There are many consumer promotion strategies that new online businesses can use to boost their sales and establish themselves in the market.
By offering incentives, discounts, and other promotions, businesses can attract and retain customers, encourage them to try new products, and increase their overall satisfaction with the brand. You can avail the best strategies in your marketing plan with RewardPort’s team of dedicated marketers, you can create a powerful and effective sales promotion campaign that will help your business succeed.
Frequently Asked Questions: -
A flash sale makes your consumer base feel compelled to make a purchase right away. Flash sales may therefore be one of your best options for sales marketing, especially if your company does a significant portion of its business online.
The main objective of promotion is to raise consumer knowledge of the available goods and services as well as the reasons why they are valuable. Although encouraging quick purchases through incentives, sales promotion also tries to market goods and services.
Encourages new clients: Sales incentives provide prospective clients with a risk-free opportunity to try something novel. Increases awareness: By running advertisements alongside your sales campaign, you'll attract more customers and raise your brand's visibility.
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How to Counter Product Return E-Commerce with Consumer Sales Promotion?
Product returns have been a significant challenge for online retail businesses. Every year about 20-30% of the products sold online face returns. That is not only a loss in revenue but also doubles up the costs for the sellers, not to mention damage to the reputation.
Handling product returns require a robust after-sale process, something which, small e-commerce retailer would find challenging to build. You can, however, work to reduce product returns and after-sale issues.
Addressing avoidable challenges like sizing, multiple purchases, and setting correct expectations are a few things every online retailer should consider. However, after this, you can also have specific consumer promotion campaigns to reduce the chances of returns even further.
The first thing to do before you start investing in consumer sales promotion campaigns is to estimate a budget. That will depend on how much product returns hurt your business overall. This is the maximum amount you should set aside for sales promotion to minimise returns.
How Product Returns Hurt More Than Your Reputation?
Not only do product returns result in lost revenue, but they also harm sellers’ reputations and customer loyalty. However, by implementing effective consumer sales promotion strategies, you can counter product returns and improve customer satisfaction.
The following expenses must be considered by a retailer when a product is returned:
- Labour: There will be labour costs associated with every step of the returns process, such as customer service, accounting reconciliations, shipping, warehousing, restocking, and reselling.
- Reselling: It may be necessary to repair or refurbish returned items before repackaging and reselling them if they are to be resold. The price of doing so may be far more than the selling price.
- Damaged Items: A product may need to be destroyed if it is returned in a damaged or unsaleable state, which means the retailer bears both the cost of the original purchase and the return.
Transportation: Costs associated with receiving returned items from a consumer can be high and may include paying for shipping, packaging, and labelling.
Consumer Promotion Strategies to Counter Returns
Now let us discuss how to counter product returns in e-commerce with consumer sales promotion:
1. Free Gifts with Purchase
Offering gifts with purchase is an effective way to incentivize customers to make a purchase and reduce the likelihood of returns. You can offer free products, samples, or other incentives to customers who make a minimum purchase amount.
2. Bundle Deals
Offering bundle deals is an effective way to increase sales and reduce the likelihood of returns. You can offer discounts on bundled products or services to incentivize customers to make larger purchases. Bundle deals can also help to increase the perceived value of your products or services.
3. Limited-Time Offers
Creating a sense of urgency can encourage customers to make a purchase and reduce the likelihood of returns. Offering limited-time promotions, such as flash sales or daily deals, can create a sense of urgency and motivate customers to make a purchase.
4. Discounts and Coupons
Offering discounts and coupons can incentivize customers to make a purchase and reduce the likelihood of returns. You can offer discounts on specific products or entire orders, and advertise these promotions through various channels, including email, social media, or your website. Coupons can also be offered to new customers as an incentive to try your products or services.
5. Free Shipping
One of the most common reasons for product returns is high shipping costs. By offering free shipping, you can incentivize customers to make a purchase and reduce the likelihood of returns. You can also offer free shipping for a minimum purchase amount to encourage customers to increase their cart value.
6. Loyalty Programs
Loyalty programs are designed to incentivize customers to make repeat purchases and reduce the likelihood of returns. You can offer exclusive discounts, reward points, or early access to new products or services to customers who join your loyalty program. Loyalty programs can also help to build long-term relationships with customers and improve customer retention.
7. Personalised Promotions
Personalised promotions are tailored to the individual needs and interests of your customers. By using data such as past purchases, browsing behaviour, or demographic information, you can offer promotions that are relevant and personalized to each customer. Personalised promotions can increase customer satisfaction and reduce the likelihood of returns.
8. Referral Programs
Referral programs are an effective way to incentivize existing customers to refer new customers to your business. You can offer incentives such as discounts, credits, or free products to customers who refer others to your business. Referral programs can help to increase customer acquisition and reduce the likelihood of returns.
9. Personalised Customer Support
Providing personalised customer support can help to reduce the likelihood of returns. By offering personalised support, you can address any concerns or issues that customers may have and improve their overall experience with your business. Personalised support can also help to build long-term relationships with customers and improve customer retention.
Run Effective Consumer Promotion Programs
Product returns can be a significant challenge for e-commerce businesses. However, with RewardPort’s effective consumer sales promotion strategies, you can counter product returns and improve customer satisfaction. By offering free shipping, discounts, gifts with purchase, loyalty programs, personalized promotions, limited-time offers, referral programs, bundle deals, and personalized customer support, you can incentivize customers to make a purchase and reduce the likelihood of returns.
Frequently Asked Questions: -
Consumer promotion is a marketing tactic intended to persuade customers to make larger purchases. Consumer sales promotion has two purposes: to increase brand recognition in the marketplace and foster brand loyalty among current customers, which in turn helps to increase sales and conversions.
Consumer promotions are short-term strategies created to fulfil short-term goals. Consumer sales promotion strategies can help you encourage purchases, boost in-store traffic, or just create excitement for your products or brand.
Companies can utilize a variety of sales promotion strategies, such as coupons, rebates, free samples, contests, prizes, loyalty plans, volume discounts, and point-of-purchase displays.
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Most Common Mistakes People Make with Consumer Promotions
Consumer promotions are a popular marketing strategy used by businesses to drive sales, increase brand awareness, and create customer loyalty. However, despite the potential benefits, these promotions can also lead to several mistakes that can negatively impact your brand and bottom line.
Consumer promotions are marketing strategies aimed at attracting and retaining customers by offering incentives such as discounts, freebies, or bonuses. They are a crucial aspect of modern marketing and are used by companies to increase sales, build brand awareness, and enhance customer loyalty. In this blog, we will explore the different types of consumer promotions and how they can benefit your business.
1. Discounts and Coupons
One of the most popular consumer promotions are offering discounts on products or services. This can be achieved using coupons or special codes that customers can redeem for a specific discount on their purchases. This type of promotion is particularly effective for driving sales during slow periods or for introducing new products.
2. Free Samples
Another effective consumer promotion is providing free samples of products. This allows customers to try the product before they buy, and it can also serve to generate positive word-of-mouth advertising.
3. Buy-One-Get-One (BOGO) Offers
BOGO offers are a great way to encourage customers to purchase more than one item. This type of promotion works by offering customers a free item for every item they purchase.
4. Limited-Time Offers
Creating a sense of urgency can be a powerful motivator for customers to act. Limited-time offers, such as flash sales or time-bound discounts, can drive sales by encouraging customers to purchase before the offer expires.
5. Loyalty Programs
Loyalty programs are designed to reward customers for their repeated business. This can be in the form of points that can be redeemed for discounts or special offers, or it can be a tiered system that provides increasingly better rewards as customers make more purchases.
Consumer promotions are an effective way for businesses to increase sales, build brand awareness, and enhance customer loyalty. By offering a variety of promotions, businesses can reach a wider audience and create a more compelling customer experience. Whether you’re a small business or a large corporation, incorporating consumer promotions into your marketing strategy can lead to greater success and increased customer satisfaction.
In this blog, we will explore the most common mistakes people make with consumer promotions and how to avoid them.
1. Overcomplicating the Offer
A promotion that is too complicated or confusing can result in low participation and a negative customer experience. Make sure the offer is simple, easy to understand, and straightforward. Avoid using complex terms or requiring customers to jump through hoops to redeem the offer.
2. Failing to Set Clear Goals
Without clear goals, it is difficult to measure the success of your promotion and determine whether it is worth repeating in the future. Establish specific objectives such as increasing sales, boosting brand awareness, or driving traffic to your website. This will help you determine whether the promotion is achieving its intended purpose and make necessary adjustments if it is not.
3. Overshooting the Budget
Running a consumer promotion requires a budget, and a lack of resources can limit the potential impact of the promotion. Make sure you have allocated enough funds to support the promotion and run it effectively. This includes advertising costs, printing and distribution of promotional materials, and reward costs.
4. Poor Timing
Timing is critical when it comes to consumer promotions. Running a promotion during a slow period, or when your target audience is not actively engaged, can result in low participation and a lack of impact. Consider factors such as seasonality, holidays, and events when selecting the best time to run your promotion.
5. Neglecting Customer Service
Poor customer service can quickly ruin the positive impact of a promotion. Ensure that your customer service team is prepared to handle an increase in inquiries and is trained to assist customers with any questions or concerns related to the promotion.
6. Failing to Promote the Offer
The success of a promotion largely depends on how well it is promoted. Make sure to advertise the promotion through various channels such as email, social media, and in-store displays. This will help reach your target audience and increase participation in the promotion.
7. Lagging Follow-Up
Once the promotion is over, it’s important to follow up with customers to understand their experience and gather feedback. This will help you make necessary adjustments for future promotions and build stronger relationships with your customers.
Conclusion
Consumer promotions can be a powerful tool for businesses looking to drive sales and increase brand awareness. By avoiding the common mistakes outlined in this blog, you can run successful and effective promotions that provide measurable results and deliver positive customer experiences.
Frequently Asked Questions: -
Consumer Promotion in a business is important to drive more sales, stimulate a purchase, encourage loyalty among existing customers, motivating customers to spend more & more on your products, and attracting new customers within a short time.
A consumer reward program, also referred to as a loyalty program, can be defined to attract more customers and encourage the existing customers to remain loyal to a brand. Consumers are rewarded in the form of loyalty points, cashback, discount, or anything else, whenever they make a purchase from a certain brand and earn rewards that can be used to save some money in future purchases.
The four major types of consumer promotions are listed below:
- Social Media Contests: Come up with creative contests on social media platforms for brand awareness.
- Free Samples: Offer free samples or trials to gain target customers.
- Coupons/Vouchers: Offer coupon codes or vouchers through other popular platforms, such as G-Pay, Paytm, Amazon, Flipkart, etc.
- Consumer Reward Programs: Come up with loyalty programs to encourage repeat purchases.
Got a Marketing Challenge at Hand?
Your Guide to Consumer Promotion for 2023
As the holiday season approaches, brands have a special chance to both take advantage of one-time offers and plan their strategy for the upcoming year. Every year brings new customer expectations and trends, so savvy business leaders will use a combination of tried-and-true techniques and cutting-edge data to meet both present and future customers.
It makes sense that one of the most crucial marketing processes is the promotion plan.
It promotes your marketing messages, engages your target audience, and helps you connect with them. Creating promotion techniques is essential if you want to increase traffic and conversions.
You’re going to learn how to market your company and how to create a consumer promotional strategy with practical marketing techniques. You will then have a better understanding of public relations, mobile marketing, digital advertising, and content promotion.
What is a Promotion Strategy?
A promotion strategy is a workable plan to spread the word about your company, bring in more revenue, and increase customer loyalty. It should ideally answer the following for you:
- How to carry out your marketing strategy?
- Who to target?
- How to communicate with your audience?
- How to execute your consumer promotion plan?
Each year, many marketers spend more on business advertising, yet they get less in return. You must ensure that your words are reaching the people you want to address when you promote your brand. It is easier to get muffled in the noise of the market unless you have a crystal-clear communication strategy.
Additionally, it is exceedingly challenging to turn prospects into consumers without using persuasive marketing messages that evoke strong emotions and spark interest in and desire for your products.
Role of Promotions
One of the four components of the marketing mix is a consumer promotion. It is a component of marketing communication that reaches your target market to raise awareness and encourage dialogue with potential customers. With the aid of promotion, you may attract the interest of your target audience, pique their need for your goods and services, and persuade them to purchase from you.
- Increase Awareness: Educate your target market about the goods and services you offer. Your target market, consumer promotional marketing messages, and outreach techniques must all be determined.
- Foster Pursuits: Gaining their support for your company. To display originality, and difference from rivals and provide adequate material for lead nurturing, a well-designed content marketing plan is necessary.
- Lodge Demands: Making your services and products appealing. You may engage your prospect emotionally by sharing appealing features and advantages.
- Encourage Potential Customers to Act: Placing a call-to-action that will enable your target audience to quickly engage and discover the next steps. Each location you can position to promote conversions, including your website, online advertising, and social media.
Additionally, it will support the development of a stronger bond and encourage returning customers to do business with you for a longer period.
Types of Promotional Activities
You can draw in potential customers through a variety of consumer promotional marketing strategies. The customer loyalty program, internet advertising, and traditional marketing like face-to-face selling.
- Selling in Person: A company’s sales representatives personally deliver their offer to you in a sales presentation. With you, it is simpler to develop relationships than it is with the other strategies.
- Conventional Marketing: To reach a larger audience, encourage immediate engagement, and boost sales, you can employ any paid adverts. It is one-to-one marketing, and the price is determined by the amount bid.
- Direct Selling: Through marketing platforms, it is direct communication with a carefully targeted audience. It has a greater probability of receiving prompt feedback and maintaining client relationships.
- Sales Promotion: To encourage purchase and conversion by performing a short-term marketing campaign will activate attention. You will surely get immediate responses.
- Public Relations: You can give the right information and manage both positive and negative client feedback to improve your company’s reputation and foster stronger customer relationships.
- Customer Loyalty Program: It encourages your present clients to buy more frequently from you and stay with you, which over time results in significant earnings for you.
Why is a Promotional Strategy is so Important?
One of the most vital marketing procedures is business advertising. It focuses on the best ways to draw in suitable clientele, effectively market your goods and services, and persuade customers to purchase them.
If you execute a strong consumer promotion campaign effectively, you can move prospects from the awareness stage into the action stage. It enables you to develop a lasting relationship with your target market and build strong brand recognition and lead generation.
Additionally, creating a consumer promotion strategy aid in the reduction of pointless promotion expenses. This is because you’ll market to the appropriate audience rather than just everybody out there. And they’ll start favouring you over the competition as they begin to recognize you more.
Benefits of Promotin Strategy
Your promotion will be guided by your marketing plan. Additionally, it will significantly affect how consumers make decisions.
The main advantages of a promotion plan are as follows:
- Increases brand recognition
- Entices new customers
- The ideal moment to publish your promotion is now.
- Boosts the flow of qualified customers
- Differentiates yourself from the competition
- Gives your customer extra value.
- Engages the people you want to reach
- Motivates consumer choice
- Look for prospective collaborations
- Build up your customer base
- Increases your reputation
- Boosts prospects for word-of-mouth referrals
- Maintain a market share advantage over the competitors
- Boosts profits and sales
Market Leader in Rewards & Consumer Promotion Strategies
For the marketing efforts of your business, RewardPort provides a wide range of programs, services, goods, and solutions.
Our capacity for customisation is RewardPort’s area of competence. We can create, carry out, and implement a solution that is unique to your business.
Frequently Asked Questions: -
A sales promotion program is aimed at achieving smaller business goals within short periods. It can be done by offering short-term discounts or other offers, such as a buy one gets one deal to boost sales during a particular period.
Gifts with purchases are offered by businesses to boost their sales by attracting more and more customers. The gift can be anything, such as loyalty points that can be used to reduce the cost of future purchases, cashback on the purchase, discounts, gift cards, or anything useful for the buyers.
To redeem a gift card from a particular brand, you will have to visit their official website or mobile app, find an option to redeem a gift card directly or use the gift card to avail discounts or offers on your purchase by applying the available code.
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Why Understanding Customer Psychology is Important to Run a Successful Campaign?
We at RewardPort are determined to bring the best to the customers. Understanding consumer psychology is of prime significance. We ensure that we have a forward thinking vision and are up-to-date with the changing customer’s purchase behaviour. We are focussed to provide the best tailor-made services to the customers such as Customer Loyalty cards, Movie gift vouchers, Scratch and win rewards and various other sales vouchers. A customer is the King in the business. Reward port offers the platform which rightfully attracts and delights the King.
Better understanding of the consumers wants and desires helps to establish an invisible thread of trust and emotional connect with your brand. The following points explain the rationale behind understanding
Customer psychology:
1. Buying Behaviour is Usually Untold
Customers change their minds constantly. You need to listen to what is not been told directly. Customer behavioural insights help sales & revenue grow strong in the present and support stronger momentum for future gains by obtaining useful information on trends based on their rapidly changing demands.
2. One size doesn’t fit all.
To make sales campaign successful, the offerings have to be varied according to the customer’s age, sex, ethnicity, region, country etc. Understanding these variations is crucial.
3. Reasons for buying competitor products/services
Being informed of the qualities or features in the competitor products/services which are highly appreciated by the customers helps to get an insight into where we lack and what we need to do in order to improve sales promotion.
4. Buying Complementary products
Understanding consumer’s needs help in acknowledging their pain points. Bundling complementary products as they wish eases the purchase thereby increases the sales figure in the end.
5. Minor details
Minor details point to customers’ sentiments which are often overlooked. The feedback provided by the customers is priceless and when incorporated in the sales strategy, it helps to convert them into potential leads.
6. Reciprocity
Often people like to test samples of the products or want convenient shipping and delivery at their doorsteps. Businesses which take the first steps and reach out to their audience reciprocate the wishes of their customers. This facilitates buying decision.
7. Surprise and delight
Consumers wish to be surprised with attractive discounts along with a seamless flow of information regarding these discounts. So, it is significant to know what surprises them in order to increase sales.
8. Online vs. Offline Customers
As the purchase cycle varies for online Vs offline buyers, it is apt to appreciate those differences and subsume in the sales strategy.
9. Pricing options
While most customers prefer goods and services which are value for money, many are willing to spend a little more for the higher quality and the brand association of the product. It acts as a guide for businesses to alter pricing and discounts options for the products they offer.
10. Develop better Customer Engagement strategies
Customer engagement technique cannot be planted in the dark. Prioritizing customer psychology while preparing the sales strategy helps in engaging customers with your products/services. For example, the medium of interaction, tone of conveying message about your products/services/brand or type of information whether it is factual or generic. Also, this makes marketing strategy aligned to the target audience.
One can only beat the clock first in this competitive era by comprehending customer psychology, their wants and desires. This is why we at reward port provide the best flexible and fabulous loyalty programs for our customers.