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Is your loyalty program an inbound marketing blessing or curse?

February 6, 2017

When it comes to inbound marketing, loyalty programs can make all the difference. Unfortunately, it’s not always good. A loyalty program has to be well thought out and planned before you implement it. For some companies, loyalty programs are an absolute blessing for their inbound marketing campaign while for others, it’s a curse. The thing to remember is that customers need nurturing – new customers and existing customers. Regardless of what your loyalty program is rewarding, your content should always be paramount. Below are a few reasons why some loyalty programs fail:

  • The inbound marketing campaign and loyalty program are implemented without a sound strategy in place.
  • Marketers sit back and think that their inbound marketing software will do all of the work for them.
  • Not tracking and tracing campaigns and their success.
  • Implementing a rewards program which offers rewards that financially cripple the business.
  • Implementing a rewards or loyalty program that is confusing or complicated.

It is a fact that companies spend 5 to 10 times more on recruiting new customers than they do keep existing customers buying. If you want your loyalty program to complement your inbound marketing campaign, follow these tips:

  • Use a simple point system. Customers should be able to gather points that translate to rewards, discounts or similar. Try not to confuse the process by making the point conversion process complicated.
  • Use a tier rewards system. Many companies struggle to find a balance between attainable and desirable rewards. You can effectively do this by introducing a loyalty rewards system which works on a tier system. Provide rewards for initial loyalty and then encourage further purchases for greater rewards.
  • Consider non-monetary based rewards. Most companies opt for discount coupons, cash back, and promotional rewards. If you truly understand your consumer, you will be able to offer them alternative rewards that will enhance their experience with your company and its products. It could be an accessory for products purchased or similar. Get creative.

Digital marketing services offered by WSI

At WSI we have an in-depth understanding of how inbound marketing and loyalty programs should work. With our digital marketing experience and professional services, your inbound marketing campaign can reach new heights. We offer a great inbound marketing checklist for you to use to see if you are handling your inbound strategy correctly.

You can download our free checklist eBook or you can contact us at WSI to learn more about inbound marketing campaigns and the various other digital marketing options available to your business.

About the Author

Rick spent 20 years in the insurance industry in finance, primarily developing reporting platforms for B & C stakeholders.   His ability to speak to consumers of data (managers and analysts) and translate their needs to programmers led him to start his own digital marketing agency in 2004 to develop data driven solutions for business owners. 


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