{"id":65870,"date":"2024-11-14T14:47:41","date_gmt":"2024-11-14T03:47:41","guid":{"rendered":"https:\/\/www.salesforce.com\/?p=65870"},"modified":"2024-11-14T14:47:42","modified_gmt":"2024-11-14T03:47:42","slug":"loyalty-marketing","status":"publish","type":"post","link":"https:\/\/www.salesforce.com\/au\/blog\/loyalty-marketing\/","title":{"rendered":"Create Lifelong Customers with Loyalty Marketing"},"content":{"rendered":"\n<p>Today\u2019s consumers encounter an unprecedented number of brands on a daily basis. Their purchasing decisions are influenced by value, trends, and quality, which make them more open to <a href=\"https:\/\/www.merkle.com\/en\/merkle-now\/ebooks\/2024-loyalty-barometer-report-.html\" target=\"_blank\" rel=\" noopener nofollow\">experimenting with new products<\/a> and brands. This means businesses need to prioritise <a href=\"https:\/\/www.salesforce.com\/au\/resources\/articles\/retail-loyalty-programs\/\">loyalty marketing<\/a> to build lasting relationships with their customers.\u00a0<\/p>\n\n\n\n<p>To have an effective <a href=\"https:\/\/www.salesforce.com\/au\/blog\/future-of-loyalty-marketing\/\">loyalty strategy,<\/a> you must not only adapt to changing consumer behaviours but also anticipate and meet those consumers where they are in their journey. Modern consumers expect brands to deliver exactly what they need, whenever and wherever they need it, along with seamless, personalised service. Fulfilling these expectations requires a deep understanding of who your customers are.&nbsp;<\/p>\n\n\n\n<p>Loyalty marketing needs to be a crucial component of any business strategy. Successful loyalty programs can significantly boost purchase frequency, retention, customer lifetime value, and the acquisition of first-party data. In fact, <a href=\"https:\/\/www.salesforce.com\/au\/resources\/research-reports\/connected-shoppers-report\/\">56% of consumers<\/a> say they are more inclined to purchase from a brand if it offers a loyalty program.<\/p>\n\n\n\n<p>However, loyalty extends beyond just having a program \u2014 it\u2019s personalising experiences and addressing the specific desires and needs of customers. To do this, businesses must redefine what loyalty means and revamp their strategies accordingly.&nbsp;<\/p>\n\n\n\n<p>\u202fLet\u2019s dive into why loyalty marketing is vital, highlight common customer pain points, and how loyalty is evolving. We\u2019ll also look at three industry-specific use cases to show a clear blueprint of how loyalty marketing should be done.\u202f<\/p>\n\n\n\n<div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><h3>What you&#8217;ll learn<\/h3><ul><li><a href=\"#why\" data-level=\"2\">Why is loyalty marketing important?<\/a><\/li><li><a href=\"#common\" data-level=\"2\">Common loyalty marketing pain points\u00a0<\/a><\/li><li><a href=\"#how\" data-level=\"2\">How loyalty marketing is evolving\u00a0<\/a><\/li><li><a href=\"#use\" data-level=\"2\">Loyalty marketing use case 1: How to get to know your members\u00a0<\/a><\/li><li><a href=\"#h-loyalty-marketing-use-case-2-how-to-personalise-the-experience\" data-level=\"2\">Loyalty marketing use case 2: How to personalise the experience<\/a><\/li><li><a href=\"#h-loyalty-marketing-use-case-3-going-beyond-one-to-one-loyalty-with-community-building-nbsp\" data-level=\"2\">Loyalty marketing use case 3: Going beyond one-to-one loyalty with community building\u00a0<\/a><ul><li><a href=\"#h-read-more\" data-level=\"3\">Read more<\/a><\/li><\/ul><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why\">Why is loyalty marketing important?<\/h2>\n\n\n\n<p>Loyalty marketing is becoming increasingly important for brands and is much more far-reaching than just a program. Loyalty is the result of the sum of all interactions a customer has with a brand, and when done right, it builds an emotional connection that establishes trust between both parties.&nbsp;<\/p>\n\n\n\n<p>As consumers spend more time online, they gain access to a world of choices, freeing them from the constraints of past habits. Many are drawn to new options, especially those with evolving priorities, lifestyles, or financial circumstances. This shift is evident, with <a href=\"https:\/\/www.salesforce.com\/au\/resources\/research-reports\/state-of-the-connected-customer\/\">71% of consumers having switched brands<\/a> at least once in the past year.<\/p>\n\n\n\n<p>And brands across all industries are taking notice. According to <a href=\"https:\/\/www.gartner.com\/en\/articles\/what-will-marketing-focus-on-in-2023\" target=\"_blank\" rel=\" noopener nofollow\">Gartner<\/a>, one in three businesses that do not have a loyalty program today will establish one by 2027. We see this impacting the Fintech sector heavily, where they are not historically known for prolonged loyalty initiatives but are now finding new value and becoming market leaders.<\/p>\n\n\n\n<div class=\"layout-one wp-block-salesforce-blog-offer\">\n\t<div class=\"wp-block-offer__wrapper\">\n\n\t\t<div class=\"wp-block-offer__content\">\n\t\t\t<h2 class=\"wp-block-offer__title\">Transform your loyalty strategy<\/h2>\n\t\t\t\t\t\t\t<p class=\"wp-block-offer__description\">Discover innovative tools to create loyalty programs that adapt, engage, and build lasting connections with your customers.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t<div class=\"wp-block-button\">\n\t\t\t\t\t<a class=\"wp-block-button__link\" target=\"_self\" href=\"https:\/\/www.salesforce.com\/au\/marketing\/loyalty-management\/\">Learn more<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t<div class=\"wp-block-offer__media\">\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\t\t<div class=\"wp-block-offer__graphics wp-block-offer__contour\"><\/div>\n\t\n\t\t\t<!-- Standard Illustration -->\n\t\t<img decoding=\"async\" class=\"wp-block-offer__graphics wp-block-offer__illustration\" src=\"https:\/\/www.salesforce.com\/au\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-illustration-layout-one.png\" alt=\"\">\n\n\t\t<!-- Small Accent Illustration -->\n\t\t\t\t\t<img decoding=\"async\" class=\"wp-block-offer__graphics wp-block-offer__accent\" src=\"https:\/\/www.salesforce.com\/au\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-accent-layout-one.png\" alt=\"\">\n\t\t\n\t\t<!-- Left Side Illustration -->\n\t\t\n\t\t<!-- Cloud Illustration -->\n\t\t\t\t\t<img decoding=\"async\" class=\"wp-block-offer__graphics wp-block-offer__cloud\" src=\"https:\/\/www.salesforce.com\/au\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-cloud-layout-one.png\" alt=\"\">\n\t\t\n\t<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"common\">Common loyalty marketing pain points&nbsp;<\/h2>\n\n\n\n<p>Loyalty strategy isn\u2019t static. While many new brands are entering the loyalty space, we are also seeing a large uptick in companies that have had long-running loyalty programs change their approach. It\u2019s important for organisations to continuously modify their programs and tactics based on shifts in consumer trends, market changes, and evolving customer preferences.&nbsp;<\/p>\n\n\n\n<p>For Fintech, there has been a shift from high-value acquisition tactics to rewarding members who are more engaged over time and utilise more offerings from the institution. In Australia, <a href=\"https:\/\/www.shopify.com\/au\/blog\/customer-acquisition-cost-by-industry\" target=\"_blank\" rel=\" noopener nofollow\">customer acquisition costs vary widely<\/a>, with the average cost reaching around $129 in fashion and accessories and up to $377 in electronics. And with acquisition costs <a href=\"https:\/\/www.salesforce.com\/au\/blog\/future-of-loyalty-marketing\/\">rising 60%<\/a> over the last five years, businesses face increasing expenses to attract new customers.<\/p>\n\n\n\n<p>New loyalty programs are focused on rewarding and encouraging existing members through engagement even when they are not in a traditional \u201cbuying\u201d moment. For example, they create more financially literate members through gamification or educating members about the benefits of related product offerings to encourage cross-product acquisition, creating more stickiness and greater lifetime value.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how\">How loyalty marketing is evolving&nbsp;<\/h2>\n\n\n\n<p>While transactional loyalty programs \u2014 which reward customers with incentives like points, discounts, or cash back for frequent purchases, are key to driving results and encouraging continued engagement \u2014 they don\u2019t necessarily prompt the customer to prioritise that brand over others.&nbsp;<\/p>\n\n\n\n<p>This is what we call the \u201cDo \/ Get\u201d relationship, where you do something only because you get something in return. On the other hand, when a brand builds a genuine relationship and connection with a customer, fully integrating into the customer journey and experience, customers feel a connection to the brand and proactively take actions to engage. This is what we call the \u201cFeel \/ Do\u201d relationship and what creates a relationship built on trust between brand and member. This is where we should be headed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"use\">Loyalty marketing use case 1: How to get to know your members&nbsp;<\/h2>\n\n\n\n<p>When launching or evolving a loyalty program, it is important to understand who your members are and what is important to them. When planning your rewards, first talk to your members about what they value in the brand and find ways to reward them that are related. Remember what might be meaningful to the organisation might not be meaningful to the consumer, so it is important to keep an open mind and dig into customer expectations.&nbsp;<\/p>\n\n\n\n<p>Once you launch your program, you can mine the data and engagement to understand your customers better. Use rewards to incentivise giving <a href=\"https:\/\/www.salesforce.com\/au\/blog\/first-party-customer-data\/\">first- and zero-party data<\/a>, surveys or quizzes to learn more about where your members are in their journey. Then use the data you discover to craft better experiences and moments for them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-loyalty-marketing-use-case-2-how-to-personalise-the-experience\">Loyalty marketing use case 2: How to personalise the experience<\/h2>\n\n\n\n<p>Personalisation is another key to successful loyalty programs. Simple personalisation can be identifying if a customer is a member of your loyalty program on their first website visit and then tailoring the experience. If they are a member, remind them of the benefits they have earned. If they aren\u2019t, inform and educate them about the benefits of membership. This can be a low-cost way to drive new member acquisition and remind existing members of the value of the program and increase overall engagement.&nbsp;<\/p>\n\n\n\n<p>However, good personalisation goes beyond this. It\u2019s using the information you have captured to create memorable moments. For a financial institution, knowing that a member has children, understanding their economic status, and being aware of their highest education level (such as a university degree) can be used to advertise a student savings account on a special offers page with messaging tailored for parents, which can drive cross-product acquisition.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Personalisation can go beyond product offers. It can also create an emotional relationship between brands and members. For example, if a customer is researching home mortgages, a brand could send them information about mortgage rates and important things for first-time home buyers to know.<\/p>\n\n\n\n<p>The brand could even gamify the experience by rewarding the customer for becoming more educated with a promotion spinner, badge, or proficiency metric. By building trust and continually reinforcing the value of the program, brands will achieve better loyalty outcomes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-loyalty-marketing-use-case-3-going-beyond-one-to-one-loyalty-with-community-building-nbsp\">Loyalty marketing use case 3: Going beyond one-to-one loyalty with community building&nbsp;<\/h2>\n\n\n\n<p>As loyalty programs expand, brands have an opportunity to unite their members around causes and actions that align with the brand and its membership base. Starbucks celebrates Earth Day with online games that help members learn simple ways they can reduce waste and stop plastic build-up in the oceans through everyday choices. Programs like these reward those who share their experiences online and through social channels. This gamifies referrals and brings new awareness to important causes for the brand and its members.\u202f&nbsp;<\/p>\n\n\n\n<p>By creating a community, members stay engaged outside of buying behaviour and brands stay top of mind and part of members\u2019 conversations. This leads to longevity and more purchases over the long run.\u00a0<\/p>\n\n\n\n<div class=\"layout-one wp-block-salesforce-blog-offer\">\n\t<div class=\"wp-block-offer__wrapper\">\n\n\t\t<div class=\"wp-block-offer__content\">\n\t\t\t<h2 class=\"wp-block-offer__title\">Discover strategies for building customer loyalty and community that drive lasting engagement from nearly 5000 marketers worldwide<\/h2>\n\t\t\t\t\t\t\t<p class=\"wp-block-offer__description\"><\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t<div class=\"wp-block-button\">\n\t\t\t\t\t<a class=\"wp-block-button__link\" target=\"_self\" href=\"https:\/\/www.salesforce.com\/au\/resources\/research-reports\/state-of-marketing\/\">Get the report<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t<div class=\"wp-block-offer__media\">\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\t\t<div class=\"wp-block-offer__graphics wp-block-offer__contour\"><\/div>\n\t\n\t\t\t<!-- Standard Illustration -->\n\t\t<img decoding=\"async\" class=\"wp-block-offer__graphics wp-block-offer__illustration\" src=\"https:\/\/www.salesforce.com\/au\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-illustration-layout-one.png\" alt=\"\">\n\n\t\t<!-- Small Accent Illustration -->\n\t\t\t\t\t<img decoding=\"async\" class=\"wp-block-offer__graphics wp-block-offer__accent\" src=\"https:\/\/www.salesforce.com\/au\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-accent-layout-one.png\" alt=\"\">\n\t\t\n\t\t<!-- Left Side Illustration -->\n\t\t\n\t\t<!-- Cloud Illustration -->\n\t\t\t\t\t<img decoding=\"async\" class=\"wp-block-offer__graphics wp-block-offer__cloud\" src=\"https:\/\/www.salesforce.com\/au\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-cloud-layout-one.png\" alt=\"\">\n\t\t\n\t<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-read-more\">Read more<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.salesforce.com\/au\/resources\/articles\/retail-loyalty-programs\/\">Reimagine Your Brand Loyalty Program<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.salesforce.com\/au\/blog\/building-brands-on-customer-loyalty\/\">How Customer Loyalty Turns SMEs Into Brands That Last<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.salesforce.com\/au\/blog\/future-of-loyalty-marketing\/\">Hit Your Growth Goals with a Smarter Customer Loyalty Strategy<\/a><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>These three use cases show a clear blueprint for how to understand your customers and deliver what they need over the long term<\/p>\n","protected":false},"author":492,"featured_media":65869,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sf_justforyou_enable_alt":true,"optimizely_content_id":"","post_meta_title":"","ai_synopsis":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"sf_topic":[2455,2456],"sf_content_type":[],"coauthors":[3223,3224],"class_list":["post-65870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","sf_topic-marketing","sf_topic-marketing-cloud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Create Lifelong Customers with Loyalty Marketing | Salesforce<\/title>\n<meta name=\"description\" content=\"These three use cases show a clear blueprint for how to understand your customers and deliver what they need over the long term\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.salesforce.com\/au\/blog\/loyalty-marketing\/\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Create Lifelong Customers with Loyalty Marketing\" \/>\n<meta property=\"og:description\" content=\"These three use cases show a clear blueprint for how to understand your customers and deliver what they need over the long term\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.salesforce.com\/au\/blog\/loyalty-marketing\/\" \/>\n<meta property=\"og:site_name\" content=\"Salesforce\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/salesforce\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-14T03:47:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-14T03:47:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.salesforce.com\/au\/blog\/wp-content\/uploads\/sites\/4\/2024\/10\/TSK-37908_Loyalty_Marketing_Strategy_AS_636848735.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"844\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Matthew Schnelker, David Adler\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@salesforce\" \/>\n<meta name=\"twitter:site\" content=\"@salesforce\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Matthew Schnelker and David Adler\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta 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