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Loyalty Marketing: It’s Not Just About Free Stuff (But It Helps!)

Shivkumar M 20+ yrs shaping technology Product & GTM strategy. Fintech, healthcare & retail industry expertise. Leads product launches, adoption & GTM as Director, Product Marketing.
Loyalty Marketing: It’s Not Just About Free Stuff (But It Helps!)

When my family has to travel to Asia, we try as much as possible to book our flights via Korean Air. For one, they serve actual meals with great Asian food. For another, we experienced top level customer service from the time when our children were babies traveling in a bassinet to our current bored teenagers who can raid the galley area for drinks whenever they need to. Positive experience builds upon previous positive experience, solidifying our family’s relationship with the airline.

That’s really the only way to survive a competitive landscape. You build strong user loyalty – personalized experience upon personalized experience – turning customers’ loyalty and repeat purchases into sustainable growth for your brand.

But how do you do that for a mobile-first audience?

In this blog post, we explore eight effective strategies for retention marketing that can help you build a loyal customer base.

Understand Your Customers

To build loyalty, it’s essential to have a deep understanding of customers. Who are they? What do they like? What do they do in your app?

Use behavioral analytics to gather data and uncover insights about their preferences, behaviors, and needs. Then utilize tools like customer segmentation and persona development to create targeted messaging that resonates with specific customer groups. By understanding your customers, you can tailor your retention marketing strategies to meet their expectations and build long-lasting relationships.

Personalize the Customer Experience

If you’re still just emailing your app users with “Hello {Firstname}” and calling that “personalization,” then quit right now. That won’t cut it anymore.

Personalization means sending customers special offers on their birthday, their wedding anniversary, or the anniversary of them signing up for your service. You should be recommending products that match past purchases —anywhere from the last month to three (or more) years ago!

Because if there’s one thing that customers expect from you, it’s that your brand understands them and delivers exactly what they want. Personalization is a key driver of customer loyalty.

Leverage data and automation tools to deliver personalized experiences across multiple touchpoints. Send customized recommendations, exclusive offers, and relevant content based on individual customer preferences and behaviors. Give them that white gloved VIP treatment and you’ll see the difference in your retention rates.

A female customer showing delighted surprise at a mailed package that contains shoes, jewelry, a bag, and a mobile device. Personalization at its best.

Personalization leads to customer delight. Loyalty will follow.

Nurture Customer Relationships

The toughest lesson that new marketers have to learn is that loyalty must be earned. Retaining customers and turning them into loyal advocates can’t happen unless you’re building meaningful relationships with them.

Implement strategies to engage and nurture your customer base. Use email marketing, in-app messaging, and social media to stay connected and provide ongoing value. Offer loyalty programs, rewards, or VIP perks to incentivize repeat purchases and create a sense of exclusivity. By investing in your customer relationships, you cultivate a loyal community that advocates for your brand.

Provide Exceptional Customer Service

Customer service plays a crucial role in retention marketing. Aim to provide exceptional support and assistance at every touchpoint. Offer multiple channels for customer inquiries and ensure prompt and personalized responses. Use customer feedback and mobile app surveys to improve your products or services continually. Outstanding customer service naturally leads to enhanced customer satisfaction and long-term loyalty.

Implement Automated Lifecycle Marketing

Automated lifecycle marketing enables you to engage with customers at every stage of their journey. Set up automated workflows to send targeted messages based on specific triggers such as onboarding, product usage, or special occasions. By guiding customers through their journey and delivering relevant content and offers, you can increase their engagement and retention.

Leverage Data for Predictive Analytics

Predictive analytics uses historical data to forecast future customer behavior. You should leverage data analytics tools such as RFM analysis to identify patterns that indicate a customer’s likelihood to churn. This gives you a chance to implement proactive measures that re-engage your at-risk customers via personalized offers, recommendations, or win-back campaigns. Bonus points if all this happens automatically via triggered campaigns.

RFM analysis screenshot.

RFM analysis helps you find your at-risk customers so you can market to them accordingly.

Encourage User-generated Content and Referrals

User-generated content (UGC) and referrals are powerful tools for retention marketing. Encourage customers to share their experiences, reviews, and testimonials on social media or dedicated platforms such as G2 or app store reviews. And implement referral programs that reward customers for referring friends and family. All of this action amplifies brand awareness, and establishes much needed social proof — ingredients for driving customer loyalty.

Continuously Measure and Optimize

Retention marketing requires constant monitoring and optimization. Track key metrics such as customer retention rate, repeat purchase rate, and customer lifetime value. Analyze the effectiveness of your retention strategies and identify areas for improvement. Use A/B testing to experiment with different approaches and refine your campaigns. Better results don’t happen without continuous measurement and optimization. If you want to improve your retention marketing performance, you’ve got to track it over time.

Loyalty Leads to Retention

Retention marketing is essential for building a loyal customer base and driving long-term business success. You can create effective retention marketing campaigns that foster user loyalty and drive business growth by simply understanding your customers and catering experiences to their needs.

Remember, building user loyalty is a journey that requires ongoing effort and dedication. By consistently delivering exceptional experiences, demonstrating value, and nurturing customer relationships, you can cultivate a loyal customer base that not only stays with your brand but also becomes advocates and ambassadors.

For more on retention, check out our pocket guide below.

The User Retention Pocket Guide

A high-level overview of customer retention fundamentals in a highly visual guide.

Download Ebook Now

Last updated on May 9, 2024