Evolving technology and e-commerce are revolutionizing people’s lifestyles and creating new pathways in consumer-merchant relations. Gone are days when traditional customer marketing methods like print ads, discounts and digital promotions were the primary means of acquiring new customers. But these strategies were highly localized and lasted only in the short term. Additionally, discounts devalue the product and the brand in the long run. Leading companies and marketing departments have since developed innovative strategies that ensure higher long-term sales and increase customer loyalty and brand value exponentially. Currently, cashback programs, referral programs, and rewards are some of the most effective customer marketing strategies.
Include the Satisfied Existing Customers Satisfied Through Referral Programs
Referral programs are systematic approaches that commercial establishments take to incentivize their existing customers to encourage others to sign up to their portal, buy their product or use their service. In doing so, the existing customer and the new customer get monetary or gift card benefits that they can use for their future purchases. It is a marketing plan structure that ensures clientele growth by providing instant credibility to potential customers relying on the recommendation of the existing customer. It is also referred to as referral marketing and is perennially popular among customers. They effectively leverage the recommendations of satisfied customers and authentically reinforce brand loyalty.
Provide a Reinforcement with Reward Programs
Rewards also offer incentives to the existing customers upon purchasing products with a specific card (debit or credit), but they offer points instead of cash. The company assigns a standard value to a reward point. For example, 1 point is worth $1, which they can use to redeem as cash, vouchers, air miles etc. The point value can vary for different customers based on their credit values, credit card type, membership and loyalty, as set by the company. This program runs on a concept called gamification. It encourages the customers to get involved in point collection strategies and hence keep them engaged with the brand. The customers can redeem the points upon collecting a certain amount as predefined by the company. They would be allowed to redeem the points and trade them to benefit from their subsequent purchases.
Keep Them Coming Back with Cashback Promotions
Cashback programs work similarly to loyalty schemes and reward programs as the brands or companies provide monetary incentives to consumers who purchase their products. For every customer purchase, they receive a percentage of the amount spent back in their wallets. The customers, hence, are encouraged to use the cashback money to buy more items or services from the same company, increasing the sales and retaining loyalty. The brands can choose which products or services they would like to provide a variable rate or flat rate for cashback. They can also provide the option for the customers to check their cashback credit statement to help plan their future purchases. Companies can also ensure that the customers are not selective about purchasing the products by not disclosing the categories eligible for a variable or flat rate. Tap here to run a background check for Free with FastPeopleSearch
Why Opt for Cashback Programs?
One of the primary benefits of a cashback program over other customer marketing strategies is that the brand holds lesser cash on-premises, making it less vulnerable to accidents and hacking. It also ensures that the customers get valuable service through easily operable incentives, thus increasing their loyalty. Customers are more likely to return to the website if they know that they can avail cash back upon purchase. Cashback programs also eliminate the need for customers to wait to redeem their rewards or browse through a catalogue, saving their time and effort.