Brand loyalty is a goal all companies strive for but many struggle to achieve. Finding customers that will return to your brand regularly, particularly in this noisy, social world is tough as it can be hard to make yourself heard.
With a flooded market of start-ups and businesses looking to find the next hot thing, all competing for the attention of consumers, how does your business stand out in the crowd?
BankingRefunds.co.uk’s latest research reveals that the secret to driving long term loyalty could be as simple as treating customers to perks for nothing.
A study of 1,500 Brits on their love of perks and benefits to see if they are really beneficial in cultivating a connection between brands and their customers.
Consumers appreciate brands that go the extra mile to provide extra perks; even if they are covered in the cost of a purchase (35 per cent), believing that it inspires a connection and long term loyalty (23 per cent).
Whilst many brands offer discounts and other benefits to consumers on their birthdays, the research highlighted that by tailoring perks personally, brands can fuel the feeling of being ‘special’ that is commonly associated with receiving perks (36 per cent), alongside potentially driving sales.
Research specially focused on packaged bank accounts revealed that the top five most sought after packaged bank account perks reflect our modern way of living:
- Amazon Prime subscription (37 per cent)
- Netflix subscription (31 per cent)
- Exclusive discounts (30 per cent)
- Holiday insurance (27 per cent)
- Cashback opportunities (24 per cent)
In light of this, we take a look at how much these perks could potentially cost you and if that is a cost effective way to appeal to your customers.
Netflix and buy?
In the last few years Netflix has become one of the biggest streaming services in the world, attracting millions of viewers to binge watch their favourite TV show or movie.
The expectant and demanding millennial and Gen Z audience is at the forefront of this trend, as they have the most free time and disposable income to satiate their binging habits. But subscriptions are quite expensive; users can pay £5.99 to stream standard definition videos to one device, £6.99 for HD content and the ability to play it on two screens, or £8.99 to be able to watch four things at once on the same account and access to 4K videos.
Most viewers will opt for the middle price range – so if you offered every customer the opportunity to have a 3 month subscription you can imagine it would get pretty pricey – but if you offered it to a lucky 1000 customers in a marketing campaign you could be paying £20,970 – not such a heft price for all the potential leads it could generate.
The staple way to attract customers is simply to lower the price and offer discounts on selected items.
You can easily offset the lost revenue by planning your discounts around events of the year. For example, people are less likely to spend money during the summer as they are saving for their holidays, so set up a discount spree in the weeks leading up to the holidays to attract a greater number of paying customers.
Branding yourself as a company that is willing to reduce costs and make your goods more affordable is a surefire way to appeal to most consumers.
Creating a buzz about your company on social media with online discounts and deals will mean that the money you lose from the discounted price will be made up for in the increase in customers.
Make a deal
Many consumers love extras, from fifty cents off a can of soup to a free t-shirt. If consumers think they’re getting a deal, it will definitely help increase purchases. We all love getting something for free.
Businesses who ignore this are neglecting the psychological factors of this ploy. A deal could be something as minuscule as a keychain or magnet (even one promoting your business), the key is to have consumers believe that they are getting something extra for buying now.
The bonus can also be incorporated in the pricing of the original product, it is the mindset that a bonus creates that is important to you the seller. Advertising this fact will drive up your store’s traffic numbers.
One way to entice consumers to spend more with your business is to incentivise them to spend more with you. Offering cash back when customers spend beyond a threshold point can trick customers into thinking that they are getting a better deal by spending more.
For example, a consumer might be coming in to your store and planning on only spending £30 on items. Encouraging them at checkout to double their spend to £60 for a 15 per cent discount will still net you £51 from the sale and the customer has spent more with you than they had originally planned. Consumers will also remember that they got a good deal from you and will therefore be more likely to come back and spend with you.