Loyalty marketing or loyalty marketing consists of a series of techniques aimed at making customers make repeat purchases , be loyal to a brand over time and recommend it to their family and friends.
Loyalty marketing is an essential ingredient in the marketing of any brand, since it has been shown that satisfi customers invest more money in subsequent purchases and that it is up to 6 times more expensive to acquire a new customer than to retain a current customer.
Within the new methodologies to understand the customer life cycle, such as the flywheel , loyalty is consider an essential phase . The purchase is no longer the end of the process, but we must go further to continue generating repeat purchases and obtain new customers at no cost through recommendations.
Within loyalty marketing we can find many types of strategies and programs. These are some of the most common:
- Tier rewards. These types of loyalty programs offer different rewards depending on the spending levels of customers. If the higher tier reward is attractive enough, the customer will have an incentive to spend more. A well-known example is Sephora’s “Beauty Insider” program.
- points programs. It is the “of a lifetime”: customers accumulate points by making purchases and can later exchange them for more products of the brand. It is also used in the service sector, for example, “take 4 coffees and we’ll give you the fifth”.
- Multi-brand programs. Loyalty marketing is one area where collaborations work. By offering multi-brand rewards programs, the incentives are more and attractive, so both the client and the companies that participate win.
Loyalty marketing and SEO strategy: the case of Amazon
We are going to see how we can integrate loyalty marketing and SEO strategy through a well-known case: the ecommerce giant Amazon and its tactics to attract and retain buyers.
The process begins when a user searches for a specific product or brand on Google and ends up reaching Amazon (which usually ranks among the first search results). The system shows him a series of product options to buy, based not only on his keywords but also on his past behavior and the products best rated by buyers similar to him.
The user decides on one of the items shown and orders the product, with which we already have a first successful conversion. But as we have seen, the story does not end there.
Once the product has shipped, Amazon follows up by sending Hong Kong Email List an email to the user and asking them to leave a review about the item in question. In addition, it also takes advantage of email communications to show recommendations for other products, once again based on the behavior of similar users.
What is loyalty marketing?
With any luck, the user will come back to Amazon to buy a product and also leave a positive review, which increases the chances that the product will be sold again.
In short, Amazon’s SEO and loyalty marketing strategy teaches us two key lessons:
- Understand the customer. Much of Amazon’s success is due to its ability to know what customers want, based on a whole series of signals derived from their behavior. Taking into TR Numbers account the large volumes of information that it handles, data science is essential for this process.
- Personalize the contents. If we know what customers want, we can offer them unique solutions that fit their interests and therefore improve the chances of converting and retaining them.
