7 Powerful FMCG Loyalty Program Tips
7 Powerful FMCG Loyalty Program Tips
When done right, brands that sell FMCG (fast-moving consumer goods) can retain more customers through brand engagement, with a digital loyalty app.
As we discussed in our previous article onhow FMCG brands can increase customer loyalty, a mobile app-based rewards program allows producers of FMCG to:
This article offers a whole host of nifty FMCG loyalty program tips to help brands boost customer retention and engagement. With these FMCG loyalty program tips, businesses can personalize the customer experience and foster an emotional connection to the brand.
The Ultimate Guide to Customer Loyalty Programs
Learn how to create a successful loyalty program that retains customers and boosts sales.
1. Make it Easy
Remember, this is something you are encouraging consumers to voluntarily download, sign up to, and participate in… so don’t make it difficult and time-consuming!
From the moment a customer decides to join your loyalty program, it should take less than 60 seconds to find the app, download it, sign up and start accruing points.
The more information you ask for in the signup process, the more likely it is that a customer will either lose interest, or grow suspicious that they are opening the floodgates to an endless tidal wave of unwanted communications and “junk mail”.
All you really need in order to achieve everything we’ll discuss below is a customer’s phone number or email address, so keep registration simple and non-committal.
As for the loyalty program itself, keep the layout as simplistic and straightforward as possible – customers should be able to easily navigate their way around the app, and have no problem understanding how to accrue points and redeem rewards for their FMCG purchases.
Also, make it easy for customers to get addicted! If loyalty program members can earn points by referring their friends, sharing posts on social media and engaging the brand in other ways, then customer acquisition takes care of itself.
Word spreads fast and subscriptions to the FMCG loyalty program will expand rapidly.
2. Make it Enticing
Image Source: Lottos
When designing a loyalty program, it’s natural for brands to think about their own motives, goals and objectives. However, don’t forget about the customer’s motives, goals and objectives.
The value of the rewards needs to match the effort required to attain them, otherwise customers will quickly lose interest, and engagement will drop off.
As mentioned above, it’s always a good idea to offer as many ways for customers to earn points as possible. Reward your customers for brand engagement, not just brand spend.
At Stamp Me, we’ve noticed that many of our partners enjoy huge success by periodically offering exciting side promotions likeScratch & Win instant prize draws to spice things up.
3. Make it Personal
There is a reason why the classic “Buy 10 and Get 1 Free!” paper punch cards have died out: they don’t offer any insight into consumer behaviour.
With every new purchase a customer makes through a brand’s digital loyalty program, the brand learns a little more about them, such as:
A decent loyalty platform will store this information in its database, and use it to determine what each customer’s favorite FMCG items are, where they most frequently shop, how often they shop, what accessories and add-ons they tend to buy, and a whole host of other useful information.
Why is it useful? Because the database can drop every customer into a particular segment, and send each segment targeted communications and offers that provide a personalized experience for everyone.
One customer might prefer discounts, while another prefers experiential rewards. One customer might shop online, while another shops in-store.
Perhaps the customer that buys your brand’s taco seasoning but another brand’s taco shells could be tempted with an invitation to try your taco shells for free with their next purchase of your taco seasoning.
In the battle for customer retention in a very competitive FMCG market, personalization is a brand’s greatest ally. Not only that, but63% of consumers actually expect it.
Arecent Euclid study found that more than half of US consumers are happy for retailers to know their purchase history if it means tailored rewards and personalized discounts.
4. Make it Versatile
Image Source: Twitter
While personalization facilitates a targeted approach to satisfying customers’ needs, brands can also opt for the “casting a very wide net” method.
Most brands in the FMCG sector share a wide portion of customers with other FMCG brands.
For example, Dolmio and Mueller’s Pasta are completely separate brands, and yet their customer bases no doubt overlaps. In many supermarkets, you’ll find Mueller’s dried pasta and Dolmio pasta sauce side-by-side on the shelves.
Why not partner up to offer a more versatile digital loyalty program that benefits both brands mutually? The more variety a loyalty program offers in its points accrual, exclusive offers and enticing rewards, the more customers will benefit from it and therefore take an interest in it.
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5. Make it a Market Research Tool
We already illustrated how the data obtained from customers’ transactions can be used to personalize their brand experience, but this data offers a second “leg up” to FMCG brands.
Remember the loyalty platform database that stores consumer data and categorizes customers into various segments? Brands can observe the stats and figures that this database provides, and use it to make informed decisions about the business.
Case in point: the taco analogy.
“Why do customers like our taco seasoning, but not our taco shells? What is different about our competitors’ taco shells?”
“Why are our overall sales lower on Tuesdays, and what kind of special offer can we send our customers via push notification on Tuesday afternoons (right when they’re deciding what to cook for dinner) that might change this?”
“A large percentage of our customer base seems to also purchase hot sauce in the same transaction… perhaps we should consider bringing our own brand of hot sauce to market.”
You get the idea… having access to the raw figures allows brands to see the overall big picture of how they are performing in various avenues.
6. Make it an Instrument for Two-Way Communication
Digital loyalty apps are a fantastic way to send personalized offers and tailored communications to customers, but why make it a one-way street?
In such a fast-paced industry where consumer goods are produced, packaged and sold with swift precision, customer support needs to be just as fast.
These days, it’s become commonplace for brands to offer customers round-the-clock support through social media messaging and chatbots. If a digital loyalty app incorporates the means for two-way communication between the brand and its customers, this can do wonders for customer satisfaction.
Not only does it speed the process up, but it can quickly turn a disgruntled customer into a cheerful one. This helps with customer referrals, online reviews, and so on.
For FMCG producers, the gap between brand and consumer has never been smaller.
7. Make it the Key to Something Bigger
Image Source: Acquire
As powerful as a well-structured digital loyalty app can be for a brand that produces FMCG, the buck doesn’t stop there. It’s crucial that brands reach customers through a variety of touchpoints to keep them engaged… in short, make sure your touchpoints are on-point!
Brands with strong omnichannel engagementretain 89% of their customers… this is a pretty stark contrast to the 33% customer retention rate for brands with weak omnichannel engagement.
FMCG brands can brainstorm creative ways to use the app in conjunction with other initiatives.
For example, brands can increase social media engagement through fun competitions where participants require the loyalty app. Consider turning the experience into something real with exclusive invitations to product launches, workshops and other industry events.
You can find more FMCG loyalty program tips for engaging customers in our other article,10 Ways to Improve Your Loyalty Program.
AtStamp Me Loyalty Solutions, we specialize in creating highly engaging and interactive digital loyalty programs that engage customers through multiple channels and brand touchpoints.
If you’re eager to set up a digital loyalty program for your brand,speak to a friendly member of our team today.
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