Loyalty programs: a strategic ally to strengthen and build relationships

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by:  Marco Hermo

In times of fierce competition, a good strategy for customer loyalty is to offer advantages that surprise you, with perceived real gains, when making your purchases. Brands should seek ways to strengthen and strengthen their relationship with shoppers – and there is no doubt that a well-known and fairly effective bet has been to invest in loyalty programs.

The loyalty strategy has the potential to benefit consumers and brands. Such actions can improve shopper engagement, increase business revenue, and most importantly provide a good shopping experience. Market research indicates that 76% of Brazilians want to shop in an establishment that offers loyalty programs and more than 90% of the population would like to participate in campaigns that offer this type of advantage. The most recent surveys show that 90 million people participate in loyalty programs in the country.

The numbers make it clear that while this type of program is growing in Brazil, there is still a huge potential to be explored. We are talking about a scenario of opportunities for brands, which can achieve results even in the short term. With a well-structured loyalty program, companies can earn a solid revenue boost while at the same time dramatically reducing the value needed to search and maintain shoppers. According to market research, customer loyalty costs 50% less than winning a new buyer – and that needs to be on the radar of business leaders.

For airlines, for example, Carnival is one of the most promising periods for ticketing. Attributes like the convenience of shopping in an online environment that already has passenger data and preferences saved, and the opportunity to save money by using cumulative points are great attractions for customers. Airlines have long realized that a well-structured, loyalty-oriented benefit program is essential to drive and direct sales efforts and anticipate actions more appropriate to the business environments of their operations.

This scenario is only possible with the intelligent and innovative use of technology combined with a good strategy of action, which should consider differentiated and specific actions for periods of great opportunity. With digital transformation, companies have modernized their benefit programs, migrating from physical cards to mobile applications, and have paved the way for the collection, analysis, and use of consumer profile data.
These and other changes have made the use of digital tools a strategic business factor for all segments, including retail. By combining the enormous analytical capacity of technological intelligence with more humane proposals of relationships, the brands strengthen their approach and contact with consumers.

To take full advantage of the advantages brought by technology, however, it is essential to carry out a well-structured planning, adopting reliable options and the end-to-end vision of the market. An alternative to optimizing costs is to seek out an experienced partner with strong segment and technology knowledge to manage the operation of the initiative. In this way, the company can count the benefits of the loyalty program without the need to use extra resources of its teams.

Taking positive and effective actions to strengthen the relationship with customers is one of the main needs of companies today. It is up to leaders to decide whether their operations are prepared to be among those recognized and remembered for offering an experience that truly delights their consumers.

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