As the world continues to experience record high levels of inflation, loyalty programs can help brands stay afloat. From racking up rewards points to a host of personalized deals, consumers are often on the hunt for the brands that will give them the most bang for their buck. We sat down with President, Kurt Whitmer to learn how your loyalty program can set you apart during this crisis.
As US inflation hit a 40-year high in May of 2022, businesses and customers alike took a hit. This was especially true for those brands with price-sensitive supply chains, such as quick service restaurants and grocery stores.
And yet, one thing remained constant: loyalty programs. While they are not a catch-all solution that can flip a brand’s revenue completely, they can help keep consumers around long-term, even during economic uncertainty.
As inflation rises, overall demand falls, so the goal here is to keep your customers engaged. Your loyalty program can drive repeat purchases, increase overall consumer spend, and yield higher than average order values. When it comes to customer retention, high value discounts, offers, and rewards go a long way.
Loyalty programs are not just a short-lived marketing trend. In fact, they’ve been around for decades. Connecting with your customers using their data truly never goes out of style. During times of economic crises, customers may not be able to make the large purchases they’re accustomed to, but smaller, regular purchases can still add up, both for them and for your business.
Despite inflation concerns, your brand can still grow by giving consumers exactly what they need. In today’s market, customers are seeking brands that work to build a relationship that goes both ways. Loyalty programs can do just that. By offering personalized rewards such as birthday discounts and anniversary specials, you will be able to foster emotional connections that last.
Loyalty programs also give you the opportunity to gain insights into your customers’ purchasing behavior. This data allows you to speak the language of customers, working that personalization into your strategy. With this vital information, your future marketing efforts will help retain your current customers and attract new ones.