It acts like a value chain: the brand offers a reward to encourage a certain action; the customer performs the action (buys a product. Or responds to a post-purchase satisfaction survey. For example); the brand thanks you for the action with the reward offered (gift cards at other stores. Free services. Participation in sweepstakes. Discounts. Etc.). The consumer understands that part of the amount invested in the action returned to him. So he feels valued by the brand and can be motivated to buy again . At a next opportunity. This strategy applies to all stages of the sales funnel. From attracting new customers to encouraging those who already. Have a relationship with the brand to buy again .
Sales Funnel According
The book marketing metrics: the definitive guide to evaluating marketing performance , a first-time customer is 50% likely to make a repeat purchase, while 80% of those who return once tend to purchase a third time. This means that the more returning customers you have, the less you will need to spend on VP Safety Email List attracting and converting new customers. But rewards marketing techniques only bring good results to the company when they seek to know the interest of their audience in depth and then promote rewards that motivate them to buy. And what are the benefits of using rewards? The simplest and most straightforward answer is: they grab consumers’ attention and reduce the friction associated with decision making .
Successful Rewards Marketing
Actions consider the public’s profile when designing and publicizing the benefits offered, which increases the chances of encouraging them to buy. This is done by analyzing user data. Some consumer insights that can guide brands to adapt rewards are: middle ages; salary income; genre; interests and consumption habits. This information can be collected and verified with the implementation of data driven marketing , through actions such as questionnaires and tracking of navigation cookies. All this customization has a very low cost for the company, but generates a significant return.